www.cityscape-magazine.com
The official show daily
OCT 6 – DAY ONE OCT 7 – DAY TWO OCT 8 – DAY THREE OCT 9 – DAY FOUR 2008
48
NO SIGN OF SLOWDOWN
All roads in Dubai lead to Cityscape this week and the traffic jams were the only
Contents sign of slowdown yesterday, as thousands of visitors flocked to the world’s largest
B2B real estate investment event, breaking all previous day-one figures.
9 Cityscape: welcome
Personal perspective on the week’s networking and
awards events
10 Update: exhibitor news
Latest updates from the show floor and key emerging markets
23 Focus: financial
The potential impact of the 2010 GCC Currency Union
24 Line-up: conference programme
Analysis and debate of the industry’s hot topics
27 Line-up: speaker profiles
Leading industry experts share their market insight
34 Review: day one
Round-up of action from the conference sessions
and show floor
43 Focus: industry report
Mazaya Real Estate Index activity report on Saudi Arabia
45 Focus: Cityscape Intelligence
Jones Lang LaSalle’s MENA Investor Sentiment Survey
48 Overview: Saudi Arabia
Destination market overview
53 Event: awards
Winners of the 2008 Cityscape Architectural Awards
58 Focus: Oxford Business Group The 2008 exhibition and the “US bail-out already region’s leading players continued He elaborated by saying that
Syria’s investment and development focus
conference was officially opened feels like last year’s story.” to unveil a raft of high-profile it was important that the region’s
by His Highness Sheikh Hamdan He also referenced the projects following hot on the key players educate buyers about
bin Mohammed bin Rashid industry’s eternal buoyancy as heels of Nakheel’s tallest tower the changing market environment,
Meraas launches Al Maktoum, Crown Prince of a key factor. “You want to be announcement yesterday. and readjust ROI expectations.
Jumeira Gardens Dubai and Chairman of the
Executive Council of Dubai.
optimistic, it’s the business
you’re in. However, for the
DAMAC Properties reconfirmed
its confidence in the UAE market,
“But I don’t see real estate going
down in value,” he commented.
US$95 billion ‘city within a city’ for Dubai According to the organiser, moment there is only uncertainty, guaranteeing 40 percent rental Jonathan Garner, a global
IIR Conferences & Exhibitions, and many of today’s speakers returns on its new Executive emerging markets strategist for
Meraas Development, a newly launched Dubai-based real estate day one visitor figures broke will hopefully help us peer Suites project in Business Bay the UK’s Morgan Stanley was also
development company, has announced the launch of its US$95 the 2007 record and there through the sand in search and Ali Kolaghassi, vice chairman upbeat, particularly about the
billion Jumeira Gardens master planned community project. were a number of multi-billion of light,” said Dimbleby. and CEO of Jordan’s Saraya prospects of emerging markets,
The mixed-use, freehold and leasehold development is being dollar announcements to This year’s conference sessions Holdings said that the UAE is echoing some analyst comment
positioned as an integrated ‘city within a city’, with the team of launch the show including also feature an interactive “well placed to weather the that the current slump is a cyclical
architects and planners tasked to devise bold designs that will help Meraas Development’s US$95 keypad for instantaneous storm and will rebound faster downturn and market structures
redefine Dubai’s visual character and cityscape. billion Jumeira Gardens delegate polling on a range of than most other economies.” would emerge largely intact.
Jumeira Gardens will be home to some of the city’s largest towers, master planned community. issues. The first question was
which Meraas says will set standards of green building design. Veteran British broadcaster, ‘would things look brighter for
Sina Al Kazim, CEO of Meraas Development, said that the project and political commentator, real estate projects within the
will be “a community that enriches the lives of everyone living and Jonathan Dimbleby chaired next six months?’ A total of 53
working within its borders”. the opening Real Estate percent of delegates said there
To be constructed over a 12-year phased timeline, Jumeira Leadership Strategy Summit, would be little change in the
Gardens will see the redevelopment of an area north of Sheikh Zayed addressing a packed audience market but 29 percent believe
Road, between Al Diyafa Street and Safa Park. of regional investors, developers that banks will curb lending.
Construction of Phase 1 has already begun, and the first buildings and industry professionals. Despite industry-wide
are due for handover in the fourth quarter of 2011. Final completion Commenting on the daily acknowledgement of established
of Phase 1 is set for the fourth quarter of 2013. Stand PB10 changing scenario in the market issues and a slowdown
Turn to page 10 for the full story global markets he said that in some emerging markets, the
welcome SHOW
WELCOME TO CITYSCAPE DUBAI 2008 Adrian Smith & Gordon Gill, winners at the Cityscape Architectural Awards Ken Jamieson
On behalf of the exhibition and showcase got off to a flying
events team, may I welcome start on Sunday 5th with the
you to day two of Cityscape traditional curtain-raiser, the
Dubai. As expected, yesterday Cityscape Dubai Golf Classic.
was a very busy first day and This event provides the ideal
we are looking forward to an opportunity for international
equally rewarding second day. participants to meet and
Due to the immense size of network in the friendly and
the exhibition and its various informal environment that
high-profile conferences, such a fun activity creates.
Cityscape Dubai often Once again, the golf
presents a challenge to many tournament proved to be
participants and attendees a great success with over
to meet and network with 120 real estate industry
prospective business partners, professionals competing in
industry colleagues and peers. two-player teams for a range
To address this issue, my team of prizes and the accolade
and I play an increasingly of being the Cityscape Dubai
important role at Cityscape, Golf Champions. This year’s
in creating a range of special tournament was sponsored
events and activities designed by Shaikh Holdings who have
to get groups of people to approached the event with great
meet and network through a enthusiasm and excitement
variety of different activities. to ensure that the tournament
In developing a series of participants had a truly
special events and activities, memorable and enjoyable day. Over the last few years the Over 850 industry professionals Cityscape Dubai have the Village, one of the inspiring
what we are trying to create is a Played on the stunning Cityscape Architectural Awards from the emerging markets opportunity to not only benefit developments from the Dubai
set of multi-layered experiences Dubai Creek Golf and Yacht have developed into the world’s attended to celebrate and from attending the exhibition Properties Group. Undoubtedly,
designed to ensure any visitor Club course, the afternoon premier recognition vehicle acknowledge industry and various conferences, but this year will present a number
or attendee of Cityscape is able competition allowed all players for the emerging markets. The figureheads who have also to network and meet future of new ideas and suggestions
to network and develop future to enjoy the excitement, awards recognise excellence in surpassed the already high business associates at a variety for special events and activities
business opportunities with friendly competition and architecture and design from standards of the industry. of other networking events.. for next year. By developing
other visitors and attendees. camaraderie that can only be the emerging regions of the Tonight, we have the Finally, on Wednesday and integrating these new
The key to success is to experienced by playing with Gulf States, the Middle East, third of our special events evening we have the Cityscape activities into the special
deliver a series of memorable fellow real estate industry peers Asia, Africa, South America and and activities, the Cityscape Cultural Evening. This is a new events programme we hope to
events which promote and and colleagues. A resounding South and East Asia and Latin Cocktail Reception. This event event designed specifically offer a comprehensive range
encourage personal interaction success, the tournament is America. The awards seek to has been designed to bring for our international guests of special events and activities
between attendees. This set to remain a key feature of recognise and reward real estate together key participants of to savour a truly authentic for all Cityscape attendees.
requires detailed and careful Cityscape Dubai’s portfolio of industry professionals, projects, Cityscape for a final evening Arabic evening of fine food On behalf of my
planning to ensure the range special events and activities. developments and architects of fun and excitement. Set and entertainment. Set in the colleagues, I wish you a
of activities meet with the Last night, we had the that have shown outstanding in the specially designed stunning Cityscape marquee productive and rewarding
aims and objectives of the second of our special events designs, performance, vision Cityscape marquee and along the Mina A’Salam hotel Cityscape Dubai 2008.
profile of Cityscape attendees. and activities, the 2008 and achievement in key overlooking the stunning beachfront, this evening will
When developing these Cityscape Architectural emerging market and project Burj Al Arab, this event will allow delegates to meet, Ken Jamieson
events for 2008, we have tried Awards. This event is areas. The awards, and seals once again be a highlight of network and enjoy traditional Chief Xperience Officer and
to place the consumer as a designed to bring together of distinction, were presented the week’s social calendar. Arabic hospitality. The venue Group Director – Special Events
key performer within all of the the cream of the emerging at an elaborate and lavish So, by creating an integrated has been specially created and
activities. This was suitably market real estate industry gala dinner held at the Grand programme of special events themed along traditional lines
demonstrated when this year’s for one night of celebration. Hyatt Dubai, last night. and activities, attendees to and is sponsored by Culture
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Dubai 2008 Cityscape official show daily 9
NEWS update
Solidere unveils
Al Zorah Riviera
Lebanese developer announces first
emirates based project in Ajman
DUBAI – Solidere International announced its
Al Zorah Riviera residential complex at Cityscape
Dubai yesterday.
Designed by the world-renowned German architect
Axel Schultes, Al Zorah Riviera is the first residential
project to be announced within the US$60 billion Al
Zorah City, the largest development launched to date
in Ajman.
MERAAS LAUNCHES
Al Zorah Riviera will reflect outstanding design
elements and the natural ambience of Al Zorah City
and will be strategically located on the sandy beaches
of Ajman next to the downtown district of the city,
(also known as the Balad) offering direct access to
JUMEIRA GARDENS
Mixed-use project in Dubai will feature
the beach with stunning views of the sea, old town
fort and marina.
The project comprises six towers offering 1,400
to 1,500 freehold residential units in an attractive
mix of low and high-rise buildings ranging from 22 to
45 floors, with studios, one, two and three-bedroom
future iconic landmarks apartments.
Residents of each unit will enjoy unobstructed
views of the Arabian Gulf and will have direct
DUBAI – Continued from cover. Meraas Development, a Dubai-based real access to white sandy beaches. The towers will be
estate development company with an innovative approach to sustainable surrounded by five-star resort hotels, marinas and
urban planning, architecture and design, announced the launch of open public green spaces. Stand PG10
Investment guarantee the US$95 billion Jumeira Gardens in Dubai, its first master planned
community, at Cityscape Dubai yesterday.
The mixed-use, freehold and leasehold development will be an
DAMAC launches Executive Suites with integrated ‘city within a city’, with distinct neighbourhoods linked by a
40 percent rental guarantee diverse network of transportation options, and will comprise low, medium
Bloom’s sunny outlook
and high density areas with business, residential, retail, leisure and
DUBAI – DAMAC Properties has underlined the recreational components. Multi-use, community-oriented
investment potential of the UAE with its own Sustainability and appeal for urban living were overriding concerns for
assurance – launching Executive Suites, a serviced planners and architects, who also were encouraged to devise bold designs
development expected to do well in
office tower on the first day of Cityscape Dubai, with that would help redefine Dubai’s visual character and cityscape. Some new growth markets
a 40 percent rental return guarantee over three years of the city’s largest towers will be located in Jumeira Gardens, which will
for the project. set standards of ‘green’ building design, through features such as passive DUBAI – Bloom Properties CEO, Dr. Hani Shammah
Speaking at the launch, Peter Riddoch, CEO, energy generation, shaded foliage-covered atriums and roofs, heat reducing has stated that a selection of fast growing markets
DAMAC Properties Dubai said: “We believe Dubai cladding and shading fins. will remain attractive to property developers,
has the potential to become the most expensive All of the holding company’s collective resources will contribute to the especially as the demand fundamentals of these
commercial real estate destination in the world in Jumeira Gardens project. “We will leverage our subsidiaries’ expertise in countries remain strong.
the coming years. The demand and prices for office healthcare, education, retail and leisure to complement the competencies “We are particularly bullish about Abu Dhabi in
space is increasing; a recent report by Gulf News of Meraas Development in building a district of unrivalled comfort, addition to select markets in the MENA, South East
stated a price increase of 74 percent over last year. convenience and community,” said HE Abdulla Ahmad Al Habbai, Europe and South East Asia regions. The current
And, according to Colliers International, today Chairman of parent company Meraas Holding. global turmoil will certainly affect developer and
Dubai is ranked third in terms of global office real Sina Al Kazim, CEO of Meraas Development, said that the project buyer bank lending behaviours across these markets,
estate construction activity, behind Moscow “addresses every element of urban living through comprehensive planning, however this should not divert us from the fact
and Shanghai.” adopts sustainable building practices, implements cutting-edge designs that some of these countries have medium-term
He added: “In line with these reports and based and engineering, and always focuses on people, to ensure Jumeira Gardens structurally undersupplied property markets.”
on our research, we at DAMAC Properties are so is a community that enriches Shammah says that community-orientated
confident about the market that we are assuring a 40 the lives of everyone living and developments specifically, have experienced
percent rental return on the property over the three working within its borders.” unabated interest over the last year, and this trend is
years following delivery. We are offering this incentive Jumeira Gardens will be built likely to continue as investors seek out convenience
to our customers as we forecast positive growth over 12 years, across an area north in terms of location and amenities.
trends in the coming years where the market will of Sheikh Zayed Road between Al Following the success of its Bloom Gardens
still be bullish and we are aiming to supply for the Diyafa Street and Safa Park. There development situated on one of the last stretches
growing demand.” will be several major parks and of land on Abu Dhabi’s Eastern Mangrove Corniche
Executive Suites’, located in Business Bay – the a number of smaller community Road, Bloom is launching the second phase of
most-sought-after business hub of Dubai – will offer parks to ensure extensive this development, consisting of Andalusian-style
customers a completely new concept in working. green areas. A large canal will villas and townhouses in addition to luxury low rise
Customised to suit personal taste and designed run through the heart of the apartments. Stand MC10
with access to full business services and facility for development and will flow, at one
effective functioning of an office, the tower is being end, into the Business Bay Canal
positioned as an ideal location to work among the and, at the other end, out to sea.
company of like-minded people. Stand RN10 Construction of Phase 1 has
already begun, and the first CITYSCAPE SOUNDBITE...
buildings are due for handover in
the fourth quarter of 2011. Final MIMIT BHUTA
completion of Phase 1 is set
for the fourth quarter of 2013.
Stand PB10
Director, Ajit Bhuta & Associates
What are you hoping to achieve at Cityscape Dubai?
We are hoping to achieve a new clientele base,
establish joint ventures, meet new contractors and
vendors as well as embark on partnerships
for new technologies and investments to enable
us to add more landmark projects in the other
Gulf regions as well as India
10 Cityscape official show daily Dubai 2008
update NEWS
Anana Tower
ACCOLADES FOR
TAMEER SKYSCRAPER
Atkins Dubai wins design competition for
600-metre tall tower
DUBAI – Tameer unveiled the
competition-winning design of its 600-
metre-tall skyscraper project on Sheikh
Zayed Road in Dubai yesterday.
A global design competition brought
several global offices of the design firm
Atkins – from Dubai, London and Hong
Kong – into competition against each
other, with the winning bid coming from
Atkins Dubai.
CEO of Tameer, Ghassan Sakhnini,
said that the design of the Anana Tower
represents a convergence of art and
culture, with a world-renowned art gallery
at the heart of this 100-storey building,
which will sit at the foot of ‘New Dubai’.
“Like Dubai itself, great art comes from
great vision. Anara represents the future The design also incorporates the latest environmental considerations and will adhere to LEED
of what is already the most future-forward certification requirements.
metropolis in the world,” said Sakhnini. The company also revealed its Podium project yesterday. This mixed use development boasts
The tower will house a mix of one, two a
a 33-storey media screen façde – the world’s largest LED screen – which will be visible from
and three-bedroom apartments as well as 1.5 kilometres away.
penthouse suites. Along with the art gallery The Podium project will be developed in the Majan district of Dubailand, and offer a
it will have a spacious retail outlet and a powerful medium for advertising, messaging and art, when completed in the third quarter of
five-star boutique hotel. 2011. Stand 2A10
Dubai 2008 Cityscape official show daily 11
NEWS update
UP’s retail focus
Five million square feet of retail
space planned
DUBAI – Union Properties is showcasing its current
developments: Index, Limestone and its signature
MotorCity project at Cityscape Dubai.
The company has announced that it will develop
an area of five million square feet of high street
retail, commercial and hospitality space in MotorCity,
a development based on a unique automobile and
motor sport theme that includes residential, business
and leisure opportunities. The project’s construction
has commenced and is due for completion in 2010.
“We are delighted to announce the development
of the unique high street retail, commercial and
hospitality area within MotorCity,” said Simon E.
Azzam, CEO of UP. “The new development will
include a total of 11 buildings that will stretch
through MotorCity.”
“Business and leisure are important factors
that enhance any development and in the case
PAFILIA LAUNCHES
of MotorCity, the new areas will complement Dr Saleb Al Habib
the existing residential, commercial and leisure
components,” commented Azzam.
“MotorCity is our latest addition to UP’s brands,
it is in fact ‘a city within a city’ with five project New enterprises
for Jiwar
MINTHIS HILLS
components that include Dubai Autodrome,
F1-X Dubai, Business Park MotorCity and its two
residential components of UPTOWN MotorCity and Three new companies launched to
Green Community MotorCity.”
With easy access from the MotorCity interchange,
promote real estate development,
WOODS IN CYPRUS
the new district will stretch through MotorCity. The property finance and hotel management
buildings along this stretch will vary from four to 10
storeys in a total built-up area of five million square SAUDI ARABIA – Saudi-based Jiwar Real Estate
feet, and total leasable area of 2.25 million square Management & Marketing, the marketing arm of the
feet with 4,000 basement parking spaces and 800 Saudi-based Bin Laden Group, announced the launch
surface parking spaces. Stand 3B30 Bagot and Lovejoy London create of three new companies at Cityscape Dubai yesterday.
The first company specialises in the area of real
eleven villa designs estate development, the second in the area of property
finance and the third related to hotel management.
CYPRUS – Traditional Cypriot architectural values and styles have been Dr. Saleh Al Habib, CEO of Jiwar Real Estate
CITYSCAPE SOUNDBITE... retained in the latest housing development by Pafilia. Located in Tsada Management & Marketing, said: “This move comes
RAZA SIDDIQUI village, between Pafos and Polis, Minthis Hills is a private residential
complex that stretches across 4.9 million square metres of land, with just
amid efforts to further promote our company’s growth
and to leverage opportunities provided by the promising
Executive Director, 100,000 square metres being built on.
David Blackwood-Murray, director of Lovejoy London, creators of the
real estate sector in the region. We aim to expand our
business to provide an integrated property group, with
Dubai Lifestyle City
What are you hoping to achieve at Cityscape
master plan, explained: “We wanted to integrate the architecture with the
landscape, utilising local natural materials, whilst giving a sense of privacy
and community. By working with the natural assets and ecology, we are
specialised divisions in sales, marketing, real estate
development and finance, and hotel management.”
Dr. Al Habib added: “We look forward to
Dubai? Having the privilege of being the developing a country estate that celebrates nature, giving us the opportunity establishing a real estate development company
only property developer that JW Marriott has to replant and replenish and maintain what is special to Cyprus.” with a value of US$133 million, headquartered in
partnered with to provide the ultimate in There are 11 villa designs, with another to be announced shortly. These Jeddah with branches across the main cities of the
luxurious ‘branded living’, we hope to be able to include three, four and five-bedroom villas, three-bedroom bungalows and Kingdom. This company will focus in various areas,
showcase the world-renowned JW Marriott two and three-bedroom junior villas, with plots starting from 1,000 square including engineering and design for the residential
hospitality, luxury and comfort that makes metres and costing upwards of US$1.4 million. and commercial projects, conducting studies to
Dubai Lifestyle City the place for ‘haute living’ Rob Steul, principal at Woods Bagot, said: “We spent a lot of time identify the locations of the residents and commercial
studying Cypriot vernacular architecture, particularly the traditional stone complexes, in addition to real estate development
houses and buildings in the mountain villages. These buildings were and management; as it is projected to commence its
perfectly suited to their climate and landscape and developed over the operations early next year.”
CITYSCAPE SOUNDBITE... centuries, and we wanted to use these building techniques in the house Dr. Al Habib explained that the Saudi market has
DR. MOHAMMED HADDAD designs. We took the main elements of stone walls, courtyards, natural
ventilation, single pitched roofs, etc. and reinterpreted them in a modern
witnessed a significant growth in the area of real
estate finance; as it valued US$1.07 billion last year,
CEO, KM Holding
What are your expectations for Cityscape
way. While contemporary in style, the houses fit seamlessly with the
environment as well as the traditional architecture.” Shaded courtyards,
natural light and ventilation are all utilised and other eco initiatives have
and it is expected to reach US$13.3 billion by 2010;
while the value of construction projects is expected
to reach US$133.5 billion in 2010; as the real
Dubai? Dubai is becoming the region’s property been taken, including water recycling and the planting of around 50,000 estate finance is one of the contributing factors in the
hub and, as is the case every year, we feel indigenous trees and other plants. Stand RQ01 growth and development of the real estate industry.
that Cityscape Dubai will result in even more Stand 2A10
investments and deals. Many people come from all
around the world to Dubai to find out about the latest
developments, and this is what we will focus on,
informing them of our latest news and giving them
the information they need. More importantly,
we will also guide them to make better
investment choices so they can realise their
desired profit level
12 Cityscape official show daily Dubai 2008
NEWS update
CITYSCAPE SOUNDBITE... Dubai needs
ABDULLAH AL MAJED, Vice Chairman, Tanmiyat Group
What do you think will be this year’s hot topics?
public
The issue of sustainability, both in terms of the economy and the environment has been
a hot topic in the regional real estate sector for some time now and will likely
transport
feature prominently in discussions at Cityscape this year. Similarly, I think that the Former London
effects of the global economic crisis on Middle East investment markets are of interest to mayor “delighted” to
developers and other parties involved in the regional real estate sector
advise Dubai
Marina Bay DUBAI – The former mayor
of London, Ken Livingstone,
addressed regional and
international press at
Cityscape yesterday, urging
Dubai to recognise the
need for an efficient public
transport system if it wants
ETA Star launches
to succeed in becoming a
major financial centre.
Waterfront ‘club living’
Livingstone, who is chairing concept
the World Architecture Congress
which forms a key part of this Luxury residential project valued at
year’s Cityscape programme, US$545 million
was recently appointed an
SINGAPORE UNVEILS
advisor on urban planning to DUBAI – ETA Star Property Developers has announced
Caracas, Venezuela, acting the launch of its first residential club-living project,
as a consultant on the city’s Starliving, in Waterfront, Dubai.
policing and transport. Asked The project is valued at an estimated US$545 million
if he would consider taking and will comprise a main residential tower and a
PLANS TO DOUBLE on a similar role for Dubai,
he said: “I’d be delighted!”
Being a strong advocate of
public transport, with firm
5,500-square-metre communal amenities area.
The 38-storey tower will feature one to four-
bedroom apartments and penthouses, and will
offer amenities related to serviced apartments and
FINANCIAL DISTRICT
ideas about how a city should hospitality packages.
be run, Livingstone introduced “We are very proud to unveil our first ever club
the congestion charge in London living concept. Starliving will truly reflect the ultimate
and oversaw a transformation in club living and offer a unique experience that will
of the city’s aging elicit a state of overall well-being to its residents. The
transportation infrastructure Starliving project will set a standard in the luxury
New district more than twice the size of to free up London traffic. apartment space and we are sure that it will be a
London’s Canary Wharf When asked for his
suggestions on how Dubai could
sought out residential address to have,” said Abid
Junaid, executive director, ETA Star.
SINGAPORE – Singapore has announced plans to double the size of its financial district as part be improved, he replied: “Dubai As part of the concept, the project will have onsite
of a strategy to position itself as one of Asia’s leading financial centres. The new growth area must recognise a modern restaurants and retail areas, as well as medical
set aside for the extension of the existing financial district will be more than twice the size of financial district requires facilities and a business centre. The fitness centre
London’s Canary Wharf. It will provide some 2.82 million square metres of office space – or the the vast majority of workers will feature a gym, running track, a spa and sports
equivalent area of Hong Kong’s main business district. to use public transport.” courts and the developer also plans to also offer
“Singapore’s strong economic fundamentals have been driving the growth of the property In an effort to both lower indoor entertainment areas including a private
market, and the corresponding demand for quality office space for the past few years. the Cityscape event’s carbon theatre. Stand 6C20
To continue attracting investments, we are planning ahead to ensure we have sufficient footprint and alleviate traffic,
land and infrastructure to support our robust economic growth,” said Marc Boey, general organisers have laid on a series
manager, international land sales of the Urban Redevelopment Authority (URA), Singapore’s of buses to shuttle delegates
land-use agency. between major hotels in the city.
Singapore’s economy grew by 7.7 percent in 2007, and is expected to continue to grow by CITYSCAPE SOUNDBITE...
between four and six percent in the medium-term. This sustained growth is what is hoped will
drive the property market and demand for quality office spaces in the next few years. GABRIEL BEDOYA,
“Singapore’s strategic location means we are well positioned to ride this growth. Thanks to
forward planning on the part of the government some 30 years ago, we are now in an enviable CITYSCAPE SOUNDBITE... President, Corcoran New
position of being able to seamlessly extend our existing business district to accommodate
growing demand. Marina Bay remains the centrepiece of our plans to become a global financial ASHER H SCHÖN York/Miami
hub,” Boey added.
Singapore’s office sector has seen robust growth over the past three years, with demand for Vice President, What are your objectives at Cityscape
Dubai? To speak with as many delegates
office space increasing by 260,000 square metres in 2007. The URA will continue to offer sites
for development at Marina Bay over the next five to six years to meet expected demand.
“A nucleus of office developments is already forming at the new extension of the financial
Schön Properties
What are you hoping
as possible about real estate investment
opportunities in the US
district with the development of One Raffles Quay; the soon-to-be-completed Marina Bay to achieve at Cityscape
Financial Centre, and the two recently sold sites at Marina View. Several global banks and Dubai? This year we
MNCs, including UBS, Deutsche Bank, DBS and Standard Chartered are already located or will are using Cityscape Dubai CITYSCAPE SOUNDBITE...
be locating in these developments,” said Boey.
Apart from Marina Bay, to meet the future demand for Grade A office space, sites around the
as a platform to launch our
newest commercial project, ZIAD BUSHNAQ
Tanjong Pagar precinct will be released, and the Ophir-Rochor corridor will also be redeveloped
into an office cluster.
Extending from the commercial hub at Marina Centre, the Ophir-Rochor corridor will
Libertas, to the market and
expect this will generate a great
deal of interest from potential
CEO, Cornerstone Real Estate
What are your expectations for Cityscape
complement the Marina Bay area, and will feature mixed-use developments with a mix of investors, due to a strong Dubai? Our expectations are high in terms of
offices, hotels, residential and other facilities set within a park-like environment. As with Marina product offering and the attendance of investors and end-users
Bay, the area is envisioned to be a pedestrian-friendly environment with green ‘lungs’ and sheer demand for such interested in the Abu Dhabi market,
exciting activities at the street level. properties, especially in and we are hoping to position the Cornerstone
The URA will feature these sites at Cityscape Dubai as part of the Singapore government’s the ‘New Dubai’ area stamp as the main provider of quality projects
ongoing efforts to interest international investors in property development and investment
opportunities in Singapore. Stand 6D31
14 Cityscape official show daily Dubai 2008
NEWS update
CITYSCAPE SOUNDBITE... CITYSCAPE SOUNDBITE...
DARRELL METZGER, CEO, Ruwaad Destinations AJAY RAJENDRAN
What are you hoping to achieve at Cityscape Dubai?
The reason we chose to attend Cityscape Dubai, is because it is one of the most definitive Vice Chairman,
industry events that has the power – just by its pre-eminent status – to make and break
brands in our industry. As such, we are seeking to garner maximum awareness of Ruwaad Sobha Real
at Cityscape for our potential markets in the Middle East and Africa region. We will also be
seeking to reiterate that we are committed to the development of the UAE, the entire
Middle East and across the African continent, through sustainable destinations and
Estate Group
What are you hoping
developments that will add value and economic benefits to the communities in which we to achieve at Cityscape
choose to locate our projects Dubai? Primarily, we will
Dubai’s Limitless be using Cityscape as a
forum to strengthen our brand
enters Indonesia identity as a developer with
over 30 years experience in
US$1.7 billion joint venture deal signed making homes, along
with an opportunity to
INDONESIA – Limitless, the global real estate arm showcase our new and
of Dubai World, is set to develop its first project in existing projects
Indonesia, Rasuna Epicentrum. This US$1.7 billion,
330,000-square-metre mixed-use project in Jakarta
will accommodate 40,000 people in more than 1.2
million square metres of office and residential towers.
The development – open to foreign investors – will be Real estate is
completed in phases over the next eight years.
The announcement follows a joint venture signing
huge income
between Limitless and Jakarta-based Bakrieland
Development (BLD). Under the agreement, Limitless
generator
becomes a 30 percent shareholder in Bakrie Swasakti for GCC
Utama, Bumi Daya Makmur and Superwish Perkasa,
subsidiaries of BLD. Hiramsyah Thaib, president and
Work in progress totals
CEO of Bakrieland Development, added: “Bakrieland US$1.3 trillion
is honoured to partner with Limitless, whose world-
class reputation and unrivalled expertise will ensure DUBAI – Planned and on-going
the successful delivery of Rasuna Epicentrum.” real estate and construction
Saeed Ahmed Saeed, CEO of Limitless, said: projects in the GCC account
“Our entry into Indonesia cements our commitment for more than 150 percent of
to South East Asia, where we have made huge strides the region’s GDP, according
LUXURY DEVELOPER
since launching our operations there nine months to a report.
ago.” The company already has developments The total value of work-in-
underway in Malaysia and Vietnam, with 11 projects progress developments is a
currently underway worldwide, worth over US$100 staggering US$1.3 trillion,
billion, covering more than two billion square metres with the 23 major planned
ANNOUNCES MEGA
and accommodating three million people. Stand ZJ20 property projects worth more
than US$300 billion alone,
according to global management
consulting company McKinsey.
An estimated 16.35 million
YACHT MARINA PROJECT
US$116 million Dubai scheme will boast 75 berths
Government bid to
tackle spiralling rents
Backing given to new build programme
square metre of gross leasable
area (GLA) is set to be added to
the region by 2010 – which is
equivalent to 45 percent of the
total GLA in Frankfurt.
The expected expansion
ABU DHABI – A huge construction initiative to drive represents an increase in GLA
DUBAI – Island Global Yachting (IGY) the luxury marina developer and management company down rents by bridging the gap between supply and of more than 20 percent per
has revealed plans to develop and manage Dubai’s first dedicated mega yacht marina. demand has been launched in Abu Dhabi. year over the ten-year period. In
Palm Jumeirah Mega Yacht Marina will become one of only a handful in the world and has This will bring welcome relief to thousands of hard- contrast, the GLA in China has
an estimated completion date of 2009. It will be located on the west side of Palm Jumeirah’s pressed tenants who have suffered huge rent rises been increasing at around 16
trunk, adjacent to the Trump International Hotel Tower. which have also been blamed for a surge in inflation. percent per year.
With an estimated value of US$116 million, the marina will have 75 berths, 30 of which will The government has given the go-ahead to a Projects will include housing,
be capable of accommodating yachts between 50 to 165 metres in length. The remaining 45 number of major property projects to address the retail, office, industrial and
berths will accommodate yachts between 14 to 20 metres in length. crisis caused by the rapid population growth and hotel space as large developers
IGY’s Middle East CEO, Michael Horrigan, said: “The Middle East is home to more mega an economic boom, said Butti Al Qubaisi, executive attempt to meet demand.
yachts than any other region in the world, so it is fitting that such a magnificent facility should director of planning and statistics at Abu Dhabi Figures reveal that Dubai-
be located in Dubai. Department of Economy and Planning. based Emaar is the seventh
“Even amidst the current economic climate, demand remains extremely high for this size of Qubaisi told the Abu Dhabi-based Sama Emirates largest real estate company
yacht, and we are delighted to be able to deliver the magnificent Palm Jumeirah Mega Yacht magazine that rising rents were responsible for nearly in the world by market
Marina through our partnership with Nakheel. 60 percent of Abu Dhabi’s inflation last year. capitalisation, which currently
“The Palm Jumeirah Mega Yacht Marina is set to become our global flagship marina, He said: “Because of this, the government of Abu stands at US$19 billion.
enhanced by the exceptional upland and water based facilities it will offer. Using the business Dhabi has ordered the construction of massive housing The tourism market is also
model that we have successfully implemented in our many luxury marinas around the world, we projects in the next three years to alleviate this crisis, growing strongly say McKinsey.
will be able to offer berth holders the very highest levels of service in a stunning environment.” which in turn will contribute to tackling inflation. Around 37 million foreign
At the heart of the marina will be the clubhouse, a members’ only facility with other “If such projects attain their goals of achieving a tourists visited the region last
outstanding design features such as car access on to the pontoons and high level security. balance between supply and demand in the housing year generating US$28 billion
The design allows for 75 berths that will provide private yachts with facilities such as spacious sector, then rents will begin to go down. of income. This figure is likely to
pontoons that are wide enough to accommodate two cars side by side, as well as in-berth “We have conducted studies, which will be more than double by 2017.
fuelling, dockside storage modules, shore-side crew facilities and full berthing utility provisions. presented to the Abu Dhabi Executive Council
The marina will have security checkpoints at the connection to the Palm Jumeirah trunk that include several solutions to the problem, and
and the exclusive T-head pier will provide customers with a secure and exclusive location to I believe if all those projects are carried out, the
homeport their vessels. problem will be resolved.”
The luxurious clubhouse located in the centre of the radiating berths will be a members- only No details of the projects were given but according
facility and will feature elevated rooftop dining with views looking back to Trump Tower, at the to reliable sources, investments in the construction
centrepoint of the Palm Jumeirah shoreline, as well as a sunset view towards the Jumeirah and property sector will exceed US$190 billion in the
skyline with the mega yachts in the foreground. Stand 3B10 emirate in the next five years.
16 Cityscape official show daily Dubai 2008
update NEWS
Hydra Cubic One to
launch at Cityscape
Project founded on potential of real
estate market in Abu Dhabi
ABU DHABI – Hydra Cubic One, a joint venture from
Hydra Properties and Cubic Real Estate, has been
launched at Cityscape in Dubai.
The project is founded on the potential of the real
estate market in Abu Dhabi as the large amount of
funds being invested in infrastructure in the emirate
should ensure it becomes a popular investment
destination for both business and tourism.
Dr Suleiman Al Fahim, chief executive officer of
Hydra Properties, stated: “We are very pleased to
announce this new project with Cubic Real Estate.
Both Hydra Properties and Cubic have established
themselves as visionaries and leaders in their
respective fields.”
Mira Tascova, sales director of Cubic Real Estate,
WEATHERING
added that the project should ensure the relationship
between the two firms is taken to the next level.
Further details surrounding the property are to be
revealed at their stand during the show.
Meanwhile, Hydra Properties attended the
Masdar invests
US$176 million in
European wind
turbine firm
THE STORM
Conference speakers offer
Cityscape event in New York, unveiling its Al-Aqeeq
Marina project in Khiran, Kuwait. Stand ZR40
Move signals entry into lucrative
delegates reassurance
new market DUBAI – It doesn’t often rain in the UAE and it seems that the analogy
is also true in the current international market turmoil, according to
ABU DHABI – Masdar has announced that it has conference speakers yesterday.
bought a US$176 million stake in WinWinD, a The UAE is “well placed to weather the storm”, which is raining down
Finnish wind turbine manufacturer. on the global real estate market, according to Ali Kolaghassi, vice chairman
The move highlights the Abu Dhabi company’s and CEO, Saraya Holdings.
commitment to being a key player in the wind Kolaghassi started his speech by jokingly commenting that delegates
energy markets. “should hold a minute’s silence for the markets”, but he was nevertheless
“Wind plays a crucial part within renewable buoyant about the UAE’s potential. “We are well placed to weather the
energy as it is commercially competitive today. It is storm and will rebound faster than most other economies,” he said.
important for Masdar to be part of that growth,” said “What’s important is that we educate buyers that the markets have
Dr Sultan Al Jaber, CEO of Masdar. changed – we won’t see the 40 to 50 percent investment returns of
“WinWinD is at an interesting phase and is set to previously, it will more likely be 7-10 percent. But I don’t see real estate
expand into a truly global wind company servicing going down in value.”
several key markets like Scandinavia, USA, Europe,
the Middle East and Asia,” added Al Jaber.
Jonathan Garner, a Global Emerging Markets strategist for Morgan
Stanley in the UK, was also upbeat, particularly about the prospects of
Luxury Living
WinWinD is a manufacturer active in the design, emerging markets – which will grow by 6.7% this year and account for up in Fujairah
development and assembly of technologically to 75 percent of global growth.
advanced one and three megawatt wind turbines. He predicted the current slump was a cyclical downturn and market
21 units remaining in
Headquartered in Helsinki, Finland, WinWinD has structures would emerge largely intact. “Emerging markets trade far more Mina Al Fajer resort
corporate offices in Oulu, Finland and Chennai, India with each other than in the past,” he said. “China funds its own growth,
and following this deal there are plans to expand has been active with policies and isn’t reliant on foreign savings.” FUJAIRAH – Progress is continuing at Mina Al Fajer
elements of the operation into Abu Dhabi. However, in the western world things aren’t as positive. Peter Barge, Real Estate’s 72,000 square metre site at the foot of
With a string of projects already under CEO of Jones Lang LaSalle Asia, said second quarter insolvencies in the Hajjar Mountains. The US$217 million Mina Al
development, buying into a turbine manufacturer the UK were up 22 percent; UK property stocks have more than halved Fajer Resort is set to become Fujairah’s first high-end
underpins Masdar’s strategy of investing in all since the introduction of REITS; and London office prices were down 25 property development when it is finished in 2009.
aspects of the renewable energy value chain. percent. “The timing couldn’t be worse with more than 160 floors coming Once completed, Mina Al Fajer will feature a
Masdar will work in partnership with the management up in the next two years,” he said. coastal community that will include a marina, 48
of WinWinD and its majority owner, Sterling Infotech He said Dubai wasn’t immune either, describing the fact that CBD office mountain villas, 13 solarium villas, and 80 marina
Group to accelerate WinWinD’s geographic expansion rates have risen 70% and residential prices were up 40% as “unsustainable”. apartments, in addition, a 200-room five-star hotel
in Europe, India and the Middle East. But he added that for all its challenges, the global financial crisis will will be managed by Fairmont Hotels and Resorts.
A large proportion of Masdar’s investment in pass and what’s important is that “we are still around when it recovers”. Hussein Fakih, CEO of Mina Al Fajer Real Estate,
WinWinD will go into expanding its Indian operations said: “The marina was finished earlier this year
giving the company a better global performance. and foundation works for blocks A,B,C and D are
“For WinWinD, the investment is a testament to completely laid out. Retaining walls for the mountain
the high quality of Finnish wind energy know-how and villas are also in progress and construction of the
the increasing global demand for renewable energy,”
said Lassi Noponen, WinWinD’s executive chairman.
He added: “The deal provides a solid basis for
DELEGATE POLL REACTIONS
What will be the value of cross border investment in 2009?
buildings has commenced.”
After the initial launch in May 2007 Mina Al Fajer
reported that most units were swiftly sold, but the
developing our company further. This investment also Answer: US$100-200 billion (34 percent) developer is showcasing the remaining 21 units at
heralds the breakthrough of Winwind’s utility class Which country will receive the most cross border real estate Cityscape – eight marina apartments, three solarium
technology and ensures that wind energy remains a investment in 2009? villas and 12 mountain villas, which it asserts will
key part of the renewable energy solutions required to Answer: China (39 percent), followed closely by US (38 percent) appeal to investors looking beyond Dubai and Abu
meet the ever increasing global demand for energy.” Has your view of the downside Risk of Middle East real estate Dhabi. Stand RK01
Stand ZM40 investment relative to CEE/Asia changed?
Answer: Somewhat (44 percent)
Dubai 2008 Cityscape official show daily 19
NEWS update
RAFAEL VIÑOLY UNVEILS
RAFFLES CITY CONCEPT
Cityscape Architectural Award nomination for Bahrain’s
Deyaar targets oil wealth waterfront project
UAE developer to expand into ‘safe’ oil rich economies BAHRAIN – CapitaLand, the Singaporean developer of Raffles City Bahrain, today announced the public sale of the
43,000-square-metre waterfront development. At a private sales initiative in June, 101 out of 124 residential units in
DUBAI – Markus Giebel, the newly appointed chief executive officer of Tower 2 were booked, representing about 80 percent of the total available units. The average sale price has touched
Deyaar, outlined a new direction for the company, at Cityscape Dubai, with an unprecedented level for the Kingdom at US$4,500 per square metre.
a move to developing iconic towers and community developments as well as “While other parts of the West may currently be feeling the effects of the real estate market decline, the GCC real
targeting international markets. estate market in general is healthy,” said Mr. Wong Heang Fine, CEO of CapitaLand GCC Holdings Pte Ltd.
Giebel said that the company would at first target oil-rich countries, New York-based architect Rafael Viñoly has released his concept for the design of Raffles City, which was
because they were cushioned from the global credit crisis. He added that nominated at this year’s Cityscape Architectural Awards. Inspired by the geometry of Bahrain Bay and the sea,
the immediate targets would be Saudi Arabia, Tunisia and Turkey. the design curves in both section and plan, and creates a new, ‘three-dimensional urban typology’ in a single
He stressed that it was their goal to have 50 percent of the company’s architectural response to multiple, curved sites.
built-up landbank in international markets by 2009. Currently, Deyaar has a “Raffles City Bahrain is one of the six projects under the brand and every one of them is by a signature architect.
landbank of 20 million square feet – predominantly in the UAE. We want to create a collection through Raffles City and make everyone an iconic design,” said Mr Wong Heang Fine.
Yesterday, the Deyaar stand had a project under wraps for Abu “Our target is to build 10, so we have four more to go. And we are looking at sites around the world. To do a rare
Dhabi, which Giebel said would be unveiled by Deyaar chairman Nasser iconic property takes a lot of effort and it also depends on whether we can find the right location.
Bin Hassan Al-Shaikh and seven-time F1 World Champion Michael “Raffles City needs a couple of things to work, one of course is that it must be on a prime piece of land and it must
Schumacher today. Giebel added: “This will be our first iconic project.” be in the heart of the commercial district. We need the right city and the right site,” he added.
The company also revealed Enclave, its first mid-size community For the Bahrain project, three curving apartment towers, varying in height from 34 to 41 storeys, form the
development at the up-and-coming International Media Production Zone backdrop of the development, which rises above the 92,000- square-metre retail mall. A total of twelve two-storey
(IMPZ). This project will comprise nine residential buildings and will be penthouses and over 600 high-rise and terraced apartments combine with the 200-room five-star serviced residence
the first mid-size community to be launched within the IMPZ. to make up the Manama development that is scheudled for completion in Q4 2010. Below these, sit 50 unique
Going forward, Giebel said that acquisitions were also a target so long terraced sky villa residences, each of which will include a private swimming pool.
as Deyaar could buy a controlling stake. He said the company may also “Rafael Viñoly was chosen for Raffles City Bahrain due to his acclaimed international projects such as the Tokyo
look to buy long-term distressed assets in the US. “If it makes money for International Forum and the Kimmel Center for the Performing Arts in the US; and with our development he has truly
Deyaar, then it makes sense.” come up with an inspiring design for luxury living which is unique to the Gulf,” commented Mr. Wong Heang Fine.
Giebel said that the company was still studying the potential takeover of Bahrain was chosen as CapitaLand’s first Middle Eastern project due to its growing hospitality industry and its
the Plantation Polo & Equestrian Resort project. economic diversification, as he explained: “Fundamentally Bahrain is very strong. It is a financial hub, and will
Deyaar has been in talks with Dubai Islamic Bank (DIB) to take over continue to be so. It is also a playground for the eastern seaboard of Saudi and so again, that is very attractive for us.
the US$680 million real estate project, since it was seized in an effort to “We have long viewed Bahrain as a market with vast and untapped potential, but what this market has lacked,
recover debt. until recently, is the upscale mixed-use real estate developments that have become commonplace in the region.
“If it is easiest for us to build and grow then we will do that, but we have “We like to go to markets where we have good partners and we have a very strong partnership with Arcapita in
nothing against acquiring companies. For us, the most important thing to Bahrain. They were already involved in the Bahrain Bay project, and so it was a good venture.”
consider in acquisitions is the landbank,” he added. Investors in the project are predominantly from within the GCCm with a
If the company can quickly identify acquisition targets it will move large proportion from Saudi Arabia but the company believes that once the
along its growth path with pace, but this, says Giebel, will require a cash Qatar-Bahrain bridge is opened then this will further benefit development
injection. If the targets take a little longer to identify, Deyaar can grow within the Kingdom.
on the strength of its own capital. Giebel added that all future financing Outside of this region, CapitaLand is also looking at other emerging
would be Islamic, in line with its recent US$1.36 billion sukuk. markets. “We are constantly on the lookout in Russia, which is a
When asked about the global credit crisis, Giebel said that the balance very different market, and are looking principally at Moscow and St
sheets of local developers were still very strong, but he did warn that nothing Petersburg,” said Mr Wong Heang Fine.
can continue to grow forever – while adding that he did not anticipate any “I think the global situation is really an opportunity for us and we know
major corrections in the domestic market. from our half year results that we have quite a lot of cash and we’re just
Furthermore, Giebel said that after reporting a 56 percent rise in profits waiting for the right moment to see what we can pick up,” he added.
for Q2 2008, over Q2 2007, the balance sheets remain strong and that Q4 In terms of expanding its REIT base, CapitaLand is looking beyond the
results “would break all records”. Far East markets. “We are quite keen on the Middle East but the dynamics
Giebel welcomed the calls for transparency and corporate governance of the market are different and we have to see how we would fit it into the
in real estate in the UAE, which led to the arrest and detention of his local market. I think it would depend on how we structured the REIT, if we
predecessor, Zack Shahin, on alleged charges of a betrayal of trust and did it with very well-respected partners, then I think it would still do very
financial irregularities. He added: “In every developing country there are well.” Stand 7A10
always activities outside of what is wanted. We welcome the transparency
Rafael Viñoly
as a sign that the market is maturing. Any market maturing must go
through this.”
Deyaar is currently undergoing an internal audit and corporate
governance programme, and Giebel added: “I don’t believe there is room
for repeats”. Stand 2C10
CITYSCAPE SOUNDBITE...
GABRIEL BEDOYA,
President, Corcoran New York/Miami
How important is it for you to be present at this and other Cityscape
events? On a scale of one to 10, it is a 10. This, and other
Cityscape events provide me with a great platform to meet a
broad range of investors from the region. It has allowed me to
better understand the global real estate needs of the delegates
20 Cityscape official show daily Dubai 2008
financial FOCUS
WHAT WOULD GCC CURRENCY UNION IN 2010
MEAN FOR THE REAL ESTATE INDUSTRY?
Peter Cooper weighs the different scenarios and possible outcomes
Until very recently, nobody single GCC currency valued to fight inflation with higher exactly how the GCC common will need to be cleverly phased and confidence in the future.
thought that the 2010 Gulf against a basket of currencies. interest rates then this has currency will impact on local so as not to suddenly deflate It says that the Gulf States are
single currency plan stood This will probably still mean serious implications for local capital markets, and the booming local economies – and serious about economic reform
much chance of success, with that the US dollar will be property markets. The negative finest minds of economics send the real estate industry and prosperity and creating a
the divergent politics not to dominant – given its role as real interest rates of the are going to be engaged into a downward spiral, or be modern financial infrastructure.
mention economics of the the unit of account for oil US dollar peg have been a over the next 15 months in overly attractive to foreign This will not go unnoticed
region. But the combination and gas revenues – but the primary factor supporting the deciding how to proceed, so investors who would therefore among global business and
of high inflation and dollar currency basket will also local real estate boom. Kick any discussion of these issues overvalue the currency. finance, and it will tend to
devaluation over the past include the Euro, and perhaps that peg away and you could is inevitably speculative. Nevertheless, a well- be a self-fulfilling prophesy
couple of years seems to have even gold and silver. Mexico collapse the market, or at least However, if the US dollar managed currency will hold about the future attracting
galvanised the governments is working on plans for a new produce a sobering correction. weakens suddenly and severely its value as a new reserve new business, finance and
and central banks into action, currency that includes silver, Revaluation is another over the next 15 months – currency of the world, and the commerce to the region.
and suddenly a single currency and the idea of a Gold Dinar serious issue to consider. On and the US$2 Euro has been currency basket might just It is for this reason
by the original deadline for the GCC has been in the one hand, the prospect of suggested by more extreme be a prelude to a free floating that the real estate sector
(
of 2010 looks very likely, circulation for a long time.
at least in some form. A report from the Dubai
That is only 15 months International Financial Centre
away, and a historic framework economics department
It is true that having the UAE currency, and other GCC currencies, pegged to
agreement for the currency concluded last month that the US dollar has been a source of stability in the past. But it no longer seems
was signed last month with a new GCC currency will be appropriate for the booming oil states of this region to follow the fiscal and
little controversy. The national
currencies of the GCC are going
in great demand as a global
reserve currency, given that it
monetary policies of a failing US economy
to become a thing of the past, will effectively be backed by
and a regional currency will the hydrocarbon assets, oil and revaluation – and there is an commentators, and it does not currency, effectively valued should welcome and not
emerge to replace them, just as gas revenues and sovereign emerging consensus that a look so unlikely today with the against every other free moving fear the introduction of a
the majority of European Union wealth of the Gulf States. This revaluation will accompany the ongoing US financial crisis currency in the world, and on single currency, although its
countries chose to give up their report concentrated mainly on move to the single currency – the new currency presents a par with the dollar and euro. introduction will present a
currencies and create the Euro. the mechanisms that might as a one-off action to shrug a generational opportunity to This would after all fit with the change and challenge to the
We do not yet know the be used in the running of the off the under-valued dollar break with the US dollar. population size and economic macroeconomic framework
name of the new currency or new Gulf Central Bank which – means that owning hard It is true that having the importance of the region. that has created the present
where the new GCC Central are clearly important but not assets in the UAE is a no- UAE currency, and other GCC There would also be the real estate boom. But in the
Bank will be located, or how the main interest for the public lose bet to win an automatic currencies, pegged to the US opportunity for local and global longer term economic reform
it will be operated and to and business in the region. bonus in dollar terms. dollar has been a source of financial institutions to develop and greater financial maturity
what mandate. But there is Attention is bound to focus The downside is that after stability in the past. But it no a far more sophisticated and in the region will ultimately
a sort of inevitability about on two immediate issues: how the revaluation is in place, and longer seems appropriate for diverse regional financial underpin an even higher level
government affairs when a much of a revaluation will the currency basket floated, the booming oil states of this system around the new of demand for property, and
goal is decided and a strong the new currency include (if then there is no prospect of a region to follow the fiscal and currency. There would be far that can only benefit the
consensus emerges. it actually does)? And how repeat of this bonus. Therefore, monetary policies of a failing more demand for sukuks and regional property industry.
The sudden plunge in the much will interest rates rise those investors who positioned US economy. This mismatch equities issued in the new
US dollar’s fortunes over the (or fall) as a consequence of themselves to receive the of interest rates alone is currency, and these markets Peter Cooper is the author
recent weeks and a reversal of the introduction of the new revaluation bonus might as overheating local economies would have greater depth of ‘Opportunity Dubai’ to
what now looks to have been currency and central bank? well sell up and leave, and while the falling dollar is and liquidity. This would be published in London by
a bear market rally over the Real estate professionals’ this will depress the local boosting imported inflation. all have clear benefits for Harriman House at the end
summer, just underlines the ears will immediately tingle real estate sector just at the Now the Gulf States will have economic growth and create of this month, which includes
importance of establishing a at the mention of interest moment the market is digesting to consider very carefully how new demand for offices, two chapters on the Dubai
more stable single currency. rates and revaluation. what a GCC central bank will the mandate of the Gulf Central apartments and villas. real estate phenomenon
The regional central banks Obviously if a new GCC mean for interest rates. Bank is framed. If it is to target In fact, a single currency is
are now working towards a central bank has a mandate But we cannot be sure inflation then interest rate rises a demonstration of political will
Dubai 2008 Cityscape official show daily 23
CONFERENCE programme
THE LINE-UP:
CONFERENCE AND SUMMIT PROGRAMME
DAY 2: TUESDAY 7TH OCTOBER
INTERNATIONAL REAL ESTATE
INVESTMENT AND DEVELOPMENT
CONFERENCE
13:00 The Hot Debate 16.45 Lifting The Veil On Africa – The Enigmatic Jewel:
PROPERTY TRENDS – STANDING OUT FROM THE Chaired By Jonathan Dimbleby Exploring The Developments And Investment
CROWD OR SITTING ON THE FENCE? Potential Of The Residential, Commercial,
09:00 Registration And Coffee Following The Investor Instincts – Institutional Industrial And Hospitality Sectors Over The Next 2
Investors Allocation To Real Estate Years Across This Untapped Continent
10:00 Chairman’s Opening Remarks: Kamel Lazaar, Moderator: Ian Ohan, Head of Investment Geoffrey Kruger Snr, Chairman, DTZ Leadenhall,
Chairman, Swicorp Financial Advisory Services Transactions, Middle East & North Africa, South Africa
SA, Switzerland Jones Lang LaSalle MENA, UAE V
David Baker, Director aluations, DTZ Leadenhall,
Paul Devonshire, Managing Director, Pramerica South Africa
10:10 International Keynote: Powerful Strategies Property Funds AG, Germany Geoff Kruger Jnr, Director of African Operations,
And Tactics For Mastering Every Deal – Trump Richard Draycott, Managing Director – DTZ Leadenhall, South Africa
Style Negotiation Middle East, Goodman International Ltd, UAE
George Ross, Executive Vice President and Senior 17:15 Latin America – The New Wave
Counsel – Trump Organization, USA 13:45 Networking Lunch Wencesla Bunge, Managing Director –
European-Latin American Head Real Estate Group,
11:00 Value Creation In Middle East Real Estate Markets Credit Suisse, UK
– Fuelling The Growth Engine STREAM A Eduardo Machado, Managing Director, Carlyle
Blair Hagkull, Managing Director, Jones Lang LaSalle EMERGING MARKETS TAKE CENTRE STAGE – CHINA, Group, Brazil
MENA, UAE INDIA, EASTERN EUROPE, AFRICA AND LATIN AMERICA
Henry Azzam, CEO, Middle East and North Africa, 14:45 China – Far East, Far Out Or Far Fetched
Deutsche Bank, UAE Asia – Has Vietnam Arrived? STREAM B
Kate Godfrey, Senior Consultant, Oxford Business Asian REITs – What’s Next In Store? TO MIX OR NOT TO MIX: HOT OFF THE PRESS REAL
Group, UAE Nicholas Brooke, Chairman, Professional Property ESTATE SECTOR DEVELOPMENTS AND ANALYSIS
Services Group, Hong Kong 14.45 How Will Retail Real Estate Hold Its Own And
COURTING DANGER – REAL ESTATE LEGISLATION Sunil Gomes, Development Manager, Nakheel, UAE Continue To Create High Returns?
12:00 Real Estate Legislation – Too Much Or Not Enough? V
Shahram Shamsaee, Senior ice President –
Lisa Dale, Partner – Head of property Department, Al 15:30 Demystifying India – Is It Too Good To Be True? Shopping Malls, MAF Investments LLC, UAE
Tamimi & Company, UAE Shahzaad Dalal, Vice Chairman & Managing Director, Graham Dreverman, Group Managing Director,
Duane Keighran, Senior Associate, Freshfields IL&FS Investment Managers Limited, India Nakheel Retail, UAE
Bruckhaus Deringe, UAE Arun K Nanda, Vice Chairman and Executive
Director, Mahindra & Mahindra, India 15.15 Strengthening The Next Act For Commercial/Office
12:15 The Impact of the Government Involvment in Lakshmi Narayanani, CEO, Real Estate Bank India, India Property Development: What Does The Future Hold
Enhancing Real Estate Investment Sanjay Sachdeva, President – Corporate Strategy With Demand Reaching Its Peak Frontier?
H. E. Eng. Imad N. Fakhoury, Chief Executive Officer, & Business Development, Advance India Projects Robin Williamson, Managing Director – Middle East
Aqaba Development Corporation (ADC), UAE Limited, India Operations, DTZ International, UAE
12:30 Following Investor Instincts – Institutional Investors’ 16.15 Eastern Europe – The Next Opportunity After 15.40 Industrial Real Estate: Is This Asset Class Coming
Allocation To Real Estate The BRIC Markets? Russia – A Review Of The Of Age In The Region With The Increase In Demand
Ian Ohan, Head of Investment Transaction, Middle Opportunities For GCC Investors For Logistic Hubs?
North Africa, Jones Lang LaSalle MENA, UAE
East & Alwin M Tamacius, Chairman, Guardian V
Joseph Ghazal, Senior ice President, Regional
Paul Devonshire, Managing Director, Pramerica Managers Ltd., UK Director GCC, ProLogis, UAE
Property Funds AG, Germany Jerry Oates, Managing Director, Knight Frank, Russia
Richard Draycott, Chief Operating Officer, Goodman Paul Green, Chief Financial Officer, Limitless LLC, UAE 16.00 Crystallizing the Opportunity in Residential Real
Sorouh, UAE Estate: Strategies for Development Now, Next and
Heather Mulahasani, Head of Real Estate, Goldman Beyond The Horizon?
Sachs MENA Elaine Jones, CEO, Asteco, UAE
Tim Rose, Senior Fund Manager, EIS
16.25 Transcending The Paradigm Shift Of Mixed
Use Developments: Creating a New Regional
Economic Hub in South-East Asia – The Iskandar
Malaysia experience
Dato’ Ikmal Hijaz Hashim, CEO, Iskandar Regional
Authority (IRDA), Malaysia
16:50 Scaling The Pyramid Of Luxury Real Estate:
Capitalising On The Increasing Plethora Of
Opportunities In Luxury Hotels And High-End
Branded Residences
Rohit Talwar, CEO, Fast Future, UK
17:15 Sustainability In Focus – Hype Or Reality?
Evaluating New Risks And Opportunities Fuelled By
An Increasing Consumer And Market Demand For
Sustainable Real Estate
V
Stephen Oehme, Regional Director – alue
Management and Sustainability, Hyder Consulting
Middle East, UAE
24 Cityscape official show daily Dubai 2008
programme CONFERENCE
STREAM C 14TH MIDDLE EAST FACILITIES
INTERACTIVE ROUNDTABLES – ACTION AND ASSET MANAGEMENT
14:45 Round One (FAAM) CONFERENCE
15:45 Round Two 08:30 Registration And Coffee
V
Discussion 1: Joint entures In The Middle East –
With Or Without Local Partners? 09:00 Opening Remarks By The Chairman
Discussion 2: Infrastructure: The Oil In The Engine Iain A. Murray, Chairman, British Institute Of Facilities
Or A Fly In The Ointment? Management, UK
Discussion 3: Asset Management – What Works, Chief Executive Officer, SMC Facilities Management, UK
What Doesn’t? 09:10 Keynote Address: Reducing Whole Life Costs
Discussion 4: The UK And Europe: Through Effective Facilities Management – A Global
V V
aluable Or olatile? Best Practice Guide
Discussion 5: Investing In Distressed Markets – Iain A. Murray, Chairman, British Institute Of Facilities
Great Timing For US Investments? Management, UK
Discussion 6: How, Where, When And Why? Chief Executive Officer, SMC Facilities Management, UK
Developers’ Issues In The Middle East 09:50 Comparing An In-House FM Solution Versus An
Outsource Partnership
18:00 Close Of Day One Mike Liddle, Board Member, Global Consultants 14:00 Case Study: Adopting Facilities Management
Council, International Facilities Management Principles At The Early Stage Of Design
19:00 A Debut Performance – Association IFMA, USA And Development
Cityscape Cultural Evening – Arabian Nights Mick Dalton, Senior Director Property Management,
10:30 Keynote Session – Outlining The Key Challenges Emaar Properties, UAE
IIR Facilities Management Interactive Voting Session
Using individual electronic voting pads, you can 15:15 Afternoon Networking Break
take part in a live survey to capture the priorities and
common challenges faced by the audience. 15:20 Case Study: Investing Early In Facilities Management
To Reduce Life-Cycle Costs In The Long-Term
11:00 Morning Networking Break Mohamed Habbal, Senior Manager – Operability,
Nakheel, UAE
11:30 Case Study: Outsourcing Facilities Management
Through A Successful Selection Process 15:40 Panel Session: Developing Innovative Ways To
Ahmad Hussain, Acting Director, Facilities Reduce Electricity And Water Consumption
Management Department, Engineer’s Office, UAE Elaine Kelly, Regional Facilities Manager, DLA Piper, UAE
Jitin Kandy, Real Estate And Facilities Manager –
12:10 Assessing Building Performance – Gulf, Microsoft, UAE
An Integrated Approach Sean Lockie, Director, Faithful+Gould, UAE
Dr Danny Shiem Shin Then, Associate Professor, Mick Dalton, Senior Director Property Management,
Hong Kong Polytechnic University, Hong Kong, China Emaar Properties, UAE
13:00 Networking Lunch For Delegates And Speakers 16:00 Coaches To Cityscape Exhibition
Dubai International Convention
and Exhibition Centre Floor Plan
Dubai 2008 Cityscape official show daily 25
keynote SPEAKERS
SPEAKERS ONE-ON-ONE
Mohammed Al-Tawash Richard Draycott
Vice chairman and president, RealCAPITA General manager, Goodman Sorouh
INTERNATIONAL REAL ESTATE INVESTMENT AND DEVELOPMENT CONFERENCE INTERNATIONAL REAL ESTATE INVESTMENT AND
Topic: The role of Sovereign Wealth Funds in regional and international real estate markets DEVELOPMENT CONFERENCE
Session timing: 2.45pm Today @ Sheikh Maktoum Hall Topic: Following the investor instincts – Institutional investors
allocation to real estate
Mohammed Al-Tawash to me personally, and for the US$7 trillion in international offers sovereigns protection Session timing: 11:45am Today @ Sheikh Maktoum Hall
has a wealth of real estate company and the investors, to reserves (including gold) and against inflation as well a
experience, which began in provide a positive experience.” an additional US$2 to 3 trillion diversification tool. Some Richard Draycott worked in Goodman develops which
his role as a Regional Manager RealCAPITA is a real in SWFs (see table below). market observers argue that banking and consulting roles allow institutional investors
with FNC (Fujairah National estate investment company “SWF have made headlines real estate gives sovereigns in London and Hong Kong to access particular asset
Construction). In this role he founded in April 2006, with coming to the rescue of access to so-called alpha before moving into real estate classes the world over. He
was responsible for setting up a paid-up capital of US$54 investment banks damaged generating assets without five years ago. When Goodman says: “It will be interesting
the entire investment package million and an authorised by bad real estate bets in the entangling them in sensitive to explore where the Middle
for the Al Moayyad Tower capital of US$200 million. subprime mortgage market. national security issues.” East market is now in terms
in Bahrain and Al Fujairah RealCAPITA is based in Now these same funds are Today, the biggest of accepting and embracing
Tower in Fujairah, which were Bahrain and today has projects targeting real estate directly. concentration of SWFs by the importance of ‘investment
both among the tallest towers that span the Middle East and “Cash rich SWF have trillions dollar volume is in the Middle grade’ quality products, and
in the world at the time. North Africa (MENA) region, stashed away from surplus East and East Asia, and their also examining the criteria by
He went on to hold several Europe, and the Far East. revenues generated in most increasing direct investment which institutional investors are
senior positions before Al-Tawash explains: “Our cases by oil sales. Even if only a activity is causing concern now examining opportunities in
becoming a founding partner business’s success has been small proportion of this wealth in some recipient countries, the real estate space.”
in Tameer, where his vision propelled through developing is directed to real estate it could especially in the west. Draycott says that the
and leadership propelled long term partnerships, thought mean US$80 billion to US$120 Recent investments by Sorouh decided to enter the current trend in institutional
the company to become the leadership, operational synergy, billion annually,” says Al-Tawash. Middle Eastern SWFs suggest Middle East market in 2006, investment has seen something
first publicly held real estate and privileged transaction flows.” Since the beginning of that there is an appetite for Draycott was asked to establish of a rationalisation of managers.
company on the Bahrain Stock Al-Tawash is an expert in 2000, countries, especially alternative investments in the the company’s presence in the “It seems that institutions are
Exchange with a dual listing Sovereign Wealth Funds (SWF) in Asia and the Middle-East, region. Carlyle Group, GLG Middle East. pinning their colours to a limited
on the Kuwait Stock Exchange. and he will be explaining to have been transferring an Partners and Och-Ziff Capital Macquarie Goodman Industrial number of masts i.e. those who
delegates how the role of SWFs, increasing part of growing have sold stakes in their Trust (now Goodman Industrial can demonstrate track record
in regional and international foreign reserves to SWFs. In management companies to Trust) listed on the Australian and capability.
real estate markets has the meantime, the demand Middle Eastern investors, says Stock Exchange in 1995. “In addition, more complex
changed over the years. of SWFs for risky assets has Al-Tawash. He adds: “Dubai Through a series of mergers and procedures of asset allocation
He explains: “The SWFs used been going up as a result of a for example, has launched acquisitions, it soon became the are becoming commonplace,
to be big pension portfolios management of foreign reserves a new multi-billion pound largest listed industrial property and investment decisions are
investing in government safe apparently more prone to risk. sovereign wealth fund Dubai group in Australia. being expected to adhere to a
haven securities. However, Even long-established SWFs International Capital (DIC), In 2005, the group strategic overlay,” he adds.
that role has now changed and have announced that they the new fund is backed embarked on a series of The distribution of
SWFs now trade using funds would increase their exposure by state money and not acquisitions designed to institutional investment
earned from commodity export to risky assets. It is unclear just the personal wealth increase its breadth and depth geographically appears to be
revenues, real estate and if and how the ongoing credit of the Maktoum family.” and expand its operations mixed, but generally there
alternative assets markets.” crisis will affect this trend. Another fund by Dubai into new markets. It acquired is a positive outlook on Asia,
Al-Tawash believes that there He adds: “On a fundamental “The Dubai World” is one Arlington, Eurinpro, Akeler, an opportunistic approach to
After this success he went will be considerable growth in level SWF attraction to of the biggest holding Rosemound and J-REP. Europe, and an increasing
on to founder RealCAPITA, SWF activity, reflecting high real estate is also part of a companies on earth. Dubai The Goodman Group of level of interest in the Middle
which has also developed a oil and non-oil commodity wider trend among global World controls well over today was formed in 2007 East. However, this will vary
solid base for expansion. prices and general reserve investors towards considering US$100 billion, employs over following these acquisitions. according to the point in the
Throughout his career, accumulation in other countries. real estate as part of their 100,000 people and has a It emerged from this period of cycle of each jurisdiction and
Al-Tawash has demonstrated Estimates of foreign assets held overall asset allocation. presence in 100 different growth as one of the leading geography, says Draycott.
strong leadership and by sovereigns include about “As an asset class, real estate cities in 60 countries. international players in He adds that a healthy
management skills in industrial property, business percentage of this institutional
investment and real estate space and fund management. investment is still going into
organisations, throughout all of LARGEST SWFS US$BILLIONS UNDER COUNTRY INCEPTION As general manager of real estate, although fresh
the real estate market cycles. MANAGEMENT YEAR Goodman Sorouh, Draycott allocations are probably down on
Al-Tawash’s real estate Abu Dhabi Investment Council 875 UAE 1976 is responsible for keeping two years ago globally. In order
career spans 12 years, Government Pension Fund of Norway 380 Norway 1990 shareholders informed and to encourage more investment
covering the GCC and Government of Singapore Investment Corp. 330 Singapore 1981 ensuring that the business has in real estate the industry must
global investment and real Saudi Arabia - various holdings 300 Saudi Arabia n/a a sufficient deal pipeline. increase transparency, enhance
estate markets – private as Kuwait Investment Authority 250 Kuwait 1953 He is also overseeing the liquidity, and encouragement
well as public sectors. China Investment Corporation 200 China 2007 commercial success of the investment grade products, and
Time and again Al-Tawash Hong Kong Monetary Authority Invest. Portfolio 163 China 1998 Business Park and Logistics competent management.
was able to demonstrate his Temasek Holdings 159 Singapore 1974 joint ventures, undertaken The level of investor
flexibility in responding to Stabilisation Fund (and National Welfare Fund) 157 Russia 2004 by Goodman in a joint confidence in real estate varies
changing market conditions Australian Future Fund 61 Australia 2004 venture partnership. from place to place. Draycott
and his ability to “wear Qatar Investment Authority 50 Qatar 2000 Draycott finds working says: “In the Middle East, there
many hats” in the effort to Libyan Arab Foreign Investment Company 50 Libya 1981 in the Middle East a is strong confidence in the
meet and exceed corporate Revenue Regulation Fund 43 Algeria 2000 fascinating experience. He sector. The UK and Asia view
goals and challenges. Alaska Permanent Fund 40 US 1976 says: “Being involved in real real estate as a staple, and are
Today his role includes National Pensions Reserve Fund 31 Ireland 2001 estate in the Middle East is strong advocates of the long
deal origination, forging Brunei Investment Agency 30 Brunei 1983 motivation in itself. We are Term viability of the asset class.
strategic alliances, and setting Korea Investment Corporation 30 South Korea 2005 offering something new and “The US has suffered, not
the company’s strategy. Khazanah Nasional 26 Malaysia 1993 differentiated in one of the least in light of the mortgage
“I have always wanted to Kazakhstan National Fund 22 Kazakhstan 2000 most dynamic and exciting backed crisis. Most large
ensure that my company’s Alberta’s Heritage Fund 16 Canada 1976 markets in the world.” investors will view the sector
investors get the best returns Others 87 Draycott’s speech at as cyclical, but there will
I can provide. I’ve always Total 3,300 Cityscape Dubai will focus inevitably be moments of
felt that it’s important, both on the products that concern between the highs.”
Dubai 2008 Cityscape official show daily 27
CONFERENCE programme
THE LINE-UP:
CONFERENCE AND SUMMIT PROGRAMME
DAY 2: TUESDAY 7TH OCTOBER
HOTEL & TOURISM INVESTMENT
& DEVELOPMENT CONFERENCE
09:00 Registration And Coffee 12:00 Responsible Expansion: The Tourism Time Bomb WORLD ARCHITECTURE CONGRESS
Jan Laverty Jones, Former Mayor, Las Vegas
09:30 Welcome James Simmonds, Project Manager, Mubadala, UAE 08:00 Registration And Coffee
Rohit Talwar, CEO, Fast Future, UK
09:35 Chairman’s Welcome 08:35 Opening Remarks From The Chairman
David Foster, News Producer and Presenter, 13:00 Lunch For Delegates And Speakers Ken Livingstone, Former Mayor of London, UK
Al Jazeera International, Qatar
14:00 Vacation Ownership: The Share Option With A 08:45 Special Opening Address:
09:45 Global Overview: On The Up, On The Down And On Difference – Part 1 Rashad Mohammed Bukhash, Director of
The Brink Adbul Wahab al Halabi, Chief Operating Officer, Architectural Heritage, Dubai Municipality, UAE
Taleb Rifai, Deputy Secretary General, United Nations Dubailand, UAE
World Tourism Organization, Spain Piaras Moriarty, Executive VP, IFA Hotels and 09:00 Keynote Address: Strategies For New Urbanism
Resorts, UAE Ken Livingstone, Former Mayor of London, UK
10:30 The Champions And Challengers Of Middle Eric Gummers, Senior Partner, Howard Kennedy, UK
East Tourism Nick Turner, Managing Director, RCI Middle East, UAE 09:50 Keynote: A Commentary On New Urbanism From
Conrad Bigham, Director, Cushman & Wakefield Dave Evans, Executive Vice President, Group RCI, UK Pritzker Prize Laureate
Hospitality EMEA, UK Thom Mayne, Principal, Morphosis, USA
Philippe Baretaud, Development Director, 15:00 Networking And Refreshment Break
Accor Middle East, UAE 10:50 Networking And Refreshment Break
Alexandre Sogno, Managing Director Asset 15:30 Vacation Ownership: The Share Option With A
Management, Global Asset Solution, Indonesia Difference – Part 2 11:15 Integrating Urbanity With Lifestyle
and Singapore Geoff Richards, Executive Vice President, Wyndham Marilyn Jordan Taylor, Partner in Charge of Urban
Rohit Talwar, CEO, Fast Future, UK Vacation Ownership, USA Design and Planning, Skidmore Owings & Merrill, USA
Lee Tabler, CEO, Tourism Development and Dale P. Young, Vice President & General Manager – 12:00 Achieving Caring Cities By Design
Investment Company, Abu Dhabi Middle East, Marriott Vacation Club International, UAE Donna Sultan, CEO, KEO Consultants, UAE
Claude Attalla, Managing Director Northcourse
11:10 Networking And Refreshment Break Advisory Services, UAE 12:45 Reflecting The New Hybrid Identity In Urban And
Jose Ventura, Executive Director, Interval Architectural Design
11:30 The Good, The Bad And The Ugly: Using Other International, UAE Wael Al-Masri, Partner and Director of Urban Planning
Markets As Models and Architectural Design, Dar Al-Omran, Jordan
Conrad Bigham, Director, Cushman & Wakefield 16:45 Chairman’s Summary Of Day One
Hospitality EMEA, UK 13.30 Lunch For Delegates And Speakers
Alexandre Sogno, Managing Director Asset 17:00 Close Of Conference Day One
Management, Global Asset Solution, Indonesia TALL BUILDINGS – LATEST SCHOOLS OF THOUGHT
and Singapore 14:30 Iconic Towers – Getting The Right Balance
Rohit Talwar, CEO, Fast Future, UK David Scott, Chairman, Council of Tall Buildings and
Urban Habitat (CTBUH) and Principal, Arup, USA
15:10 Keynote: Supertall, Super Sustainable
Adrian Smith, Partner, Adrian Smith + Gordon Gill
Architecture, USA
16:00 Networking And Refreshment Break
SUSTAINABILITY – THE REALITY
16:30 High Performance Green Buildings – International
Inspiration And Impact
Mario Seneviratne, FI. Mech E.,P. Eng., Director,
Green Technologies FZCO, Founder and Secretary
to the Board, Emirates Green Building Council and
Board Member and Chairman –Tools & Projects
Committee, World Green Building Council, UAE
17:10 Keynote: New Construction Technologies For
Sustainability – The Rotating Towers
David Fisher, Chairman, Dynamic Architecture, Italy
17:45 Chairman’s Summary Of Day One
17:50 Close Of Congress Day One
28 Cityscape official show daily Dubai 2008
programme CONFERENCE
WORKSHOP AND SEMINAR PROGRAMME
DAY 2: TUESDAY 7TH OCTOBER
SEMINARS@CITYSCAPE DUBAI
11:00 – 12:00 11:00 – 12:00 16:00 – 17:00
REAL ESTATE THEME HOTEL THEME CONSTRUCTION THEME
Investing In UAE Property Market – A Practical Guide Service Quality In The Face Of Saturation Developing And Implementing Best Practice Health And
Safety On Construction Projects
12:30 – 13:30
REAL ESTATE THEME 12:30 – 13:30
Investing In UAE Property Market – A Practical Guide HOTEL THEME
Service Quality In The Face Of Saturation
14:30 – 15:30
SMART BUILDING THEME
Value Engineering and Commissioning
14:30 – 15:30
CONSTRUCTION THEME
Recruiting For Construction Ventures And Improving
Retention Of Your Staff
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Dubai 2008 Cityscape official show daily 29
SPEAKERS keynote
SPEAKERS ONE-ON-ONE
Lakshmi Narayanan Jeffrey Willis
CEO, Real Estate Bank India Associate Director, Arup
INTERNATIONAL REAL ESTATE INVESTMENT AND DEVELOPMENT CONFERENCE WORLD ARCHITECTURE CONGRESS
Topic: Demystifying India – Is It Too Good To Be True? High Performance Green Buildings – International Inspiration And Impact
Session timing: 3.15pm Today @ Sheikh Maktoum Hall Session timing: 4.30pm Today @ Sheikh Maktoum Hall
As president and CEO of professional intermediary which in concluding that India A mechanical engineer with associate member of the materials. Secondly, LEED
Real Estate Bank India could facilitate real estate is unique in itself and no nearly 40 years experience World Green Building Council is an international badge of
(REBI), Lakshmi Narayanan transactions,” adds Narayanan. parallels can be drawn. This is in the construction industry, Tools & Projects Committee. sustainable achievement, which
is responsible for the strategic This idea was developed into the greatest mystery of India.” Willis comments: “I have Arup was founded in London will command better sales/
direction of the company. a strong and robust business Narayanan says there been working for Arup for 30 in 1946 and over the years rental prices. Thirdly, there
He says: “Being a young model with the help of partners is no “one country-one years, across our offices in it has grown to encompass is the satisfaction of knowing
company, I have managed the like KPMG and TCS. Together, market” rule, and that India Europe, the Middle East and 10,000 staff in 37 countries, that something is being
operations for the past two they built the strong operational has multiple Indias within the Far East. I am currently with skills across a very done to help in the attempt
years, slowly taking a step frameworks and technology herself, which makes it all based in Dubai on my third wide range of disciplines. to slow global warming.
back, by putting in an efficient backbone of REBI, which will the more difficult to decipher posting to the Middle East, In a presentation to Willis believes that the
senior management team. facilitate its development. tastes and preferences. All having previously been in Cityscape Dubai delegates, cost implication of adhering
“I can now focus on Today, the company is looking the common demographic Qatar in the early 80s and Willis will talk about the to LEED depends upon the
creating the right ecosystem to expand its network into indicators used across the Abu Dhabi in the early 90s. need to focus on the local level of certification, the
for REBI to thrive, by being seven other countries. world, do not work here. The “As a sustainability leader environment in design, to go expectations of the developer
the spokesperson for the In his Cityscape Dubai wealthy of Punjab will behave for Arup in the Gulf, I have beyond LEED and to no longer and the approach to the design
company and representing it speech Narayanan will be giving completely differently from a long-standing interest in design buildings in isolation process. He says: “If the
at various forums, creating the audience a sneak peek the wealthy of Delhi, and sustainable design for buildings from their urban context. design approach is correct,
alliances and networks with into the key Indian markets they will be different from and urban developments. Willis says: “LEED there is little additional cost
champions of industry.” and how they are driving the the wealthy of Mumbai. And, as a founding member of was devised to move the to achieve gold. In energy, for
Prior to REBI, Narayanan was growth story that is India. Narayanan argues that the Emirates Green Building industry forward in terms of example, the existing Dubai
involved in the marketing and Narayanan believes that India is not for weak-hearted, Council, and coordinator of the sustainability. Its targets were Municipality regulations will
(
manufacturing of food products, India is a land of paradoxes. short-term investors, but it Technical & Awards Committee, aimed at improving, without take you very close to the
and has worked in Asia, the He says: “You will find bullock is a much touted destination
Middle East and Africa. carts driving people around of the future, and companies
He adds: “Though there has as their operators talk over looking at time windows While The industry can actually design beyond the
been no ‘design’ in my plans to
arrive at wherever I am today,
mobile phones. The rate of
adoption of some of the new
of a decade or more are
sure to find their time and
LEED targets – the challenge is to do so in a way that is
I have discovered the path technologies is leaving market investments worthwhile. acceptable to all players in the industry
that I will take into the future observers breathless. But there Indian real estate requires a
with REBI and its growing and seems to be no predictability strong single window regulator
evolving business model.” in the way in which the to guide the industry and set setting targets so high that performance level required to
Real Estate Bank India was Indian consumer behaves. performance benchmarks. the industry would not be become gold certified, and the
set up to explore opportunities “The Indian consumer’s Laws relating to real estate interested to take them on. current Dubai World regulatory
in the ‘title insurance’ business value-consciousness is now need to be consolidated and The industry can actually authority EHS (Environment,
in India. “While researching legendary and it is not easy to made more user-friendly, design beyond the LEED targets Health and Safety) regulations
the market, we realised that ‘market’ the market. In fact he says. “Transparency is – the challenge is to do so in will get you very close to
there was a tremendous marketers around the world are the key watch word and a way that is acceptable to all silver certification.”
opportunity to create a now more or less unanimous real estate in India can do players in the industry.” However, if the developer
with oodles of that. Though He believes that the is focused on minimal
apparently real estate has readiness of developers to pay expenditure and maximum
been granted industry status, for LEED certification varies, return, this is likely to be
the financing side of it still depending upon their interest perceived as a greater
needs to reform and be in the occupancy stage, what additional cost, he adds.
treated at par with other I am responsible for liaison image they wish to promote According to Willis the UAE
industries,” adds Narayanan. with the US Green Building and their conviction that a is moving very fast in terms
The Indian economy is Council for the localisation of LEED badge will dictate better of green building and LEED
growing at seven to eight LEED, (Leadership in Energy revenues. However, the level accreditation. In terms of
percent per annum and real and Environmental Design) and of acceptance is growing. enforcement and promotion he
estate is barely keeping pace the production of the EGBC For Willis the motivation to believes that the authorities
with demand. There may Green Building Guidelines.” excel on LEED is threefold. are becoming more and more
be talk of a slowdown, but Willis is also currently a Firstly, there is the long- active within the UAE. He
given the growth trajectory member of the advisory group term improvement in the adds: “More education is
of compounded growth of for the Sustainable Design building’s performance against required, but the fact that
25 percent per annum for of the Built Environment a background of inevitable it is becoming enshrined in
the past few years, even programme at the British increases in the cost of new and changing regulations
a slowdown leads to a University in Dubai and an energy and replacement will force that forward.”
growth of five percent.
The Credit Rating
Information Services of Kirsch Center
India (CRISIL) estimate
that the real estate stock
in India will reach US$1.4
trillion by 2010, growing
Golden Gate Oquirrh Park
from the current figure
(
of US$950 billion. Punahou Case
While researching the market, we realised that there
was a tremendous opportunity to create a professional
intermediary which could facilitate real estate transactions Treasure Island Caltrans District
32 Cityscape official show daily Dubai 2008
NEWS update
Salwan announces
new JBR project
Hotel apartments boast stunning views
DUBAI – Salwan, an offshoot of the Dubai Properties
Group, has launched a new development at the
Jumeirah Beach Residence (JBR).
According to the firm, Salwan Hotel Apartments
features 204 rooms of various sizes and is fully
u
eqipped with nearby amenities and panoramic
views of the bay.
Mada’in Properties to Saeed Bushalat, chief executive officer of Salwan,
showcase multi-billion said the development has been launched to meet the
demand for premium property in Dubai.
dollar projects W
“
e believe the excellent world-class amenities
and the choice location will make Salwan Hotel
Bay Terrace will be company’s Apartments a distinct choice for travellers and
he
resident visitors,” stated.
third development Other services offered by the subsidiary include the
sale and lease of properties, management of Mazad
THEWAVE,MUSCAT,
DUBAI – Mada’in Properties will offer an exclusive Auction House, property advisory services and strata
preview of prime properties strategically located in and property management.
three key districts in Dubai during its participation in Salwan earlier announced the appointment of
Cityscape Dubai this week. RSA Insurance as providers of cover for customers
The Bay Terrace in the Business Bay area, The purchasing property in the JBR.
Rubix in Dubai orld Central and the H Tower
W
in Meydan City will anchor Mada’in Properties’
presentation.
Bay Terrace is poised to be the third project to PIONEERS Its parent group Dubai Properties is finalising
insurance packages for homeowners at its Executive
Towers development in Business Bay. Stand CE10
SUSTAINABLE
be launched by Mada’in Properties after the Marina
Arcade and The Domain.
“
Amid the ongoing real estate rush that is
sweeping across the UAE market, Mada’in Properties
has remained committed to its strategy of developing
DEVELOPMENT
u
truly distinct and uniqe properties that offer
maximum investment value to investors and deliver
optimum lifestyle benefits to end-users,” said Abdul
Aziz Al Awar, CEO of Mada’in Properties.
Located on a prime area measuring 3,130 sqare u
IN OMAN
metres and with a total built-up area of 15,650
u
sqare metres, Bay Terrace offers a range of one, two
and three-bedroom apartments along with duplex-
type accommodations and penthouses. Amenities
include separate fitness centres for men and women,
a roof garden, indoor and outdoor swimming pools,
and ample parking spaces.
Developers of US$2.5 billion project
The Rubix project is a residential development place emphasis on eco-friendly
consisting of three buildings and a uniqe common
Grand Plaza at the ground floor. ith a total built-up
W
u
building practices Environmental study
area of 34,374 sqare metres, the project will have
u exceeds government
studio, one and two-bedroom apartments along with
similar facilities to Bay Terrace.
W
OMAN – The developers of the US$2.5 billion ave project in Muscat are
to implement sustainable development practices. The project, the first requirements
Offering a total built-up area of 42,000 sqare
u 100 percent freehold development in Oman, is a joint venture between
metres, the H Tower is a mixed-use development W
aterfront Investments, representing the Government of Oman, the
EMP plan is 200 percent more in-depth
comprising a 10-storey office tower and a 23-storey National Investment Funds Company, which represents Omani Pension
u
residential tower eqipped with one, two and three- Funds, and the UAE-based Majid Al Futtaim Group. has
BAHRAIN – Diyar al Muharraq commissioned
bedroom apartments, duplexes and penthouses plus W
The ave is a mixed-use community development, spread along six international environmental experts to carry out an
u
the reqisite number of facilities. Stand ZD20 kilometres of beachfront, and the developer places a significant amount of environmental impact assessment (EIA) and marine
emphasis on eco-friendly initiatives as part of its design and development, studies on a scale unprecedented in Bahrain on its
including energy efficient construction modules, best practice principles in u
uniqe master planned city.
creating green spaces and adopting sustainable water recycling techniqes. u The end result will be a comprehensive and far-
“
All the initiatives which we have undertaken are not mandatory for reaching environmental management plan (EMP).
CITYSCAPE SOUNDBITE... the construction but we have considered that ‘going green’ is an intrinsic The developer has dedicated over US$8 million
MEHDI AMJAD, W
part of The ave, Muscat being recognised as socially responsible
sustainable developers. e are looking to apply for LEED accreditation
W
to the programme, which exceeds Bahrain’s
u
governmental reqirements by more than 200 percent.
President and CEO, where appropriate. This recognition is especially important to us when
one considers that a prime motivator for developers to create a certified “
,
Aaref Hejres, CEO of Diyar Al Muharraqsaid:
Preserving the environment is at the heart of
Omniyat Properties
How important is it for you to be present at
sustainable building is to differentiate their project from the competition,”
said Nick Smith, CEO.
The exterior wall of the units in the development have cavity insulation
everything that Diyar al Muharraq stands for. As CEO,
I challenge everything that we do, to make sure it’s of
u
the highest standard, and this applies eqally to our
this and other Cityscape events? Cityscape with low E glazing, this reduces heat loss from within the building as well environmental management plan.”
exhibitions are the most suitable platform for as reducing the amount of solar heat absorbed. Diyar is working with the UNEP (United Nations
any real estate company to enhance Green spaces have also been created throughout the project that are planned Environment Programme) to actively explore a two-year
its network and client portfolio by to create habitats for local bird life and will be irrigated using recycled water initiative, designed to improve regional EIA practices.
showcasing the latest developments and u
techniqes, while an artificial reef is being created on the sea bed. ’s
Diyar Al Muharraq programme meets the orld W
meeting potential clients and partners. The developers are also sourcing the bulk of building materials, cement Bank guidelines for environmental commitment,
u
and rock reqirements from within 45 kilometres of the construction site with one to two percent of the total budget dedicated
reducing the construction carbon footprint. The development will also run across a range of environmental initiatives, from EIA,
a centralised cooling plant to provide air-conditioning to each apartment monitoring, compensation, habitat enhancement and
block rather than separate refrigerant units for each unit. other measures. Stand 6920
A total of 850 units have sold so far and 120 villas and townhouses will
be delivered by the end 2008.
34 Cityscape official show daily Dubai 2008
NEWS update
CITYSCAPE SOUNDBITE... Regional real estate
ABID JUNAID sector bucking
Executive Director, ETA Star
hat are you hoping to achieve at Cityscape Dubai?
W
international trends
Being one of the leading developers in the region, Cityscape Conferences at the world’s largest
Dubai provides us with a great opportunity to showcase our B2B real estate investment and
strength and vision. Our objective here is to communicate
our achievements and latest offerings with our customers, potential
development event focus on regional
buyers, investors, stakeholders and financial organisations boom despite global downturn
DUBAI – The western downturn in the global property
Phase Two for market contrasted with the Middle East, where the
Ajman One real estate market continues to power ahead, comes
under detailed examination as part of this week’s
Cityscape Dubai conference programme.
Aqaar launches second phase of A series of important conferences is scheduled,
US$750 million complex at which the industry’s leading experts will focus on
world and regional developments.
AJMAN – On the northern peninsula of the Arabian Y
“
ou only have to look out of any window to see
Gulf, the emirate of Ajman is enjoying a resurgence the astronomical property growth that is transforming
in economic growth and popularity with investors cityscapes,” said Shabnam Rawal, group director of
and end-users alike. Its growing free zone industrial Cityscape Conferences.
area and its proximity to both Dubai and Sharjah W
“
hile much of the west appears to be heading
has enhanced Ajman’s potential as a business and for a slump, the property business in the Arabian
commercial destination, by providing convenient Gulf, along with China and India, continues to grow.
accessibility to regional and global markets. This is just one of the many intriguing areas that will
a
Aqar Properties, the real-estate and property be covered in the widest range of conferences yet at
development company based in Ajman, has she
Cityscape,” added.
revealed two projects that it hopes will contribute The week’s events include the Real Estate
to Ajman’s progression. It will launch Phase 2 of its Leadership Strategy Summit, bringing together the
maiden project, US$750 million Ajman One, the shrewdest real estate investors from around the world
residential, commercial and hospitality complex, to address the trends, strategies and opportunities
that encompasses three freehold office towers called in the global market place. The International Real
Apex Business Towers, that will house 640 offices;a Estate Investment and Development Conference – the
convention centre, and a four-star business hotel with main event in the conference schedule - features
serviced apartments. world-class speakers for three days of analysis of the
a
Aqar will also unveil its inaugural luxury project, macro-economics of real estate development and
which will be the first waterfront development in financing options;as well real estate marketing and
Ajman. The planned development includes seven branding in the region.
AL-SHOALA AND
high-rise towers, a luxury hotel, residences, a souk, W
The orld Architecture Congress also runs parallel
spa, retail outlets and restaurants. “
with the week’s activities, as Rawal elaborates: Designed
His Highness Sheikh Rashid bin Humaid Al for architecture and urban planning professionals
Nuaimi, Chairman, Municipality and Planning it provides a regionally incomparable opportunity
EMAAR SIGN
Department of Ajman commented: ith the“
W to learn about the latest architectural concepts,
launch of Phase 2 of Ajman One and a new luxury sustainability innovations and design solutions.”
development soon to be announced, the emirate of “
Chaired this year by former Mayor of London,
Ajman is entering a new era of exciting growth and Ken Livingstone, the programme provides a high-
q
progress. Ajman is transforming from a uiet emirate level analysis of the challenges faced in architectural
US$7.2 BILLION
into a vibrant and progressive tourism and business projects internationally, with a special focus on
destination.” Stand RB10 initiatives in the Middle East.”
In addition, the week sees a no-holds barred
conference on the hotel and tourism industry in the
Middle East at a crucial time for the region’s booming
JOINT VENTURE
“
hospitality sector. The second Cityscape Dubai Hotel
CITYSCAPE SOUNDBITE... and Tourism Investment and Development Conference
MOHAMMED AL SAQQAF will host key speakers such as Jan Laverty Jones,
V
former Las egas Mayor, and look behind the facts,
CEO and Vice Chairman, Rawabi Rumah mixed-use project to cover
the figures and the finances of the industry to discover
the underlying trends,” said Rawal.
ALARGAN International Real 31 million square metres
This year, for the first time, the Middle East
Facilities and Asset Management Conference
Estate Company
hat are you hoping to achieve at
W
His
SAUDI ARABIA – Royal Highness Prince Meshal Bin AbdulAziz Al
Saud, chairman of Saudi Arabia’s Bayah Council, and owner of Al-Shoala
comes under the Cityscape umbrella and will take
place at the Crowne Plaza Hotel opposite the Dubai
International Exhibition Centre.
Cityscape Dubai? Cityscape is an appropriate Group of Establishment, has announced a US$7.2 billion joint venture W
“
ith so many uncertainties in the world combined
platform to showcase our latest developments u
project with Emaar Properties to develop a 31 million sqare metre master with a region that appears to be bucking the
and it also gives us an opportunity to stress planned community, Rawabi Rumah, located near Riyadh. international trends, there is considerable excitement
ALARGAN’s commitment to energy – efficient green Emaar will share its core competencies in integrated mega-project throughout the industry and all its sectors about this
buildings. ALARGAN is the first company in Kuwait development by creating a vibrant community featuring luxury homes year’s Cityscape ” concluded Rawal. Stand CB35
and the first real estate developer in the Middle East and commercial space, retail outlets, healthcare centres, educational
– to become a member of the United States Green institutions and community centres. One of the highlights of Rawabi Rumah
Building Council. In addition, Cityscape also is a proposed date palm park and green belt that will sprawl over 1.6
gives us an excellent chance to network with u
million sqare metres – more than the size of Hyde Park.
potential institutional investors and high-profile “
His Royal Highness Prince Meshal said: Rawabi Rumah will be a path-
industry professionals breaking project for Saudi Arabia and reflects the vision of The Custodian
u
of the Two Holy Mosqes King Abdullah bin AbdulAziz Al Saud to further
strengthen the economy and enhance the welfare of the people. Rawabi
Rumah will create over 25,000 direct jobs across various economic sectors.”
“
He added: Emaar is already an active partner in the growth of Saudi
Arabia, and through the partnership we are leveraging on the company’s
capabilities to create world-class master-planned communities. Rawabi
Rumah will be a trend-setting development and a new lifestyle destination
for the Saudi people.” Stand 7E10
36 Cityscape official show daily Dubai 2008
update NEWS
Awali City, Ajman
Italian job for select
residential project
Ferragamo in interior design
agreement for Pentominium
MIXED-USE
DUBAI – Italian luxury fashion house, Salvatore
Ferragamo Italia, will design some of the exclusive
penthouses in Dubai’s Pentominium building
following a landmark agreement with Trident
MEGA PROJECTS
HERE TO STAY
International Holdings.
The deal is the first venture into the high-end luxury
residential segment for Salvatore Ferragamo Italia.
The Pentominium will be the tallest residential
building in the world and is scheduled for completion
in 2012. It is 500 metres high and the 120-storey
tower offers the ultimate in exclusive services to its
Modern lifestyles demand large, mixed-
120 penthouse owners. use developments says real estate boss
Michele Norsa, CEO of Salvatore Ferragamo,
said: This is an important achievement in the
“ An
AJMAN – Awali Real Estate Investments official has claimed that mixed-
brand extension that lays the basis for further use ‘mega developments’ are likely to be the future standard for real estate
opportunities.” development in the region.
azir Daredia, CEO of Trident International
W Mohammed Hussein Abdullah Al Nemer chief marketing officer of Awali
Holdings, added: e are very pleased that Salvatore
W
“ Real Estate Investments believes that the growing economy in the UAE,
Ferragamo will make its debut in the top-end luxury particularly in Ajman, attracts larger numbers of new residents each year,
properties through the Pentominium project.” creating a knock-on effect in the real estate sector.
The official launch of the development will take q
The result is an increasing demand for high uality residential and
place today with a spectacular fashion show and commercial projects which prompts the need for convenience, luxury,
charity event. Stand 3E20 exclusivity and integrated community services.
“
Al Nemer said: The growing trend towards larger, more comprehensive
developments is a logical progression from the traditional, smaller projects
which have generally been single-faceted. He added that mega-sized, mixed-use developments
“
The mega projects we see being erected today are of a far more diverse u
not only cater to the essential reqirements for modern
nature, with a tendency to include a great deal more than simply residential or living, but also play a vital role in the sustained
office space. development of the region’s economy, as the sheer
“
Instead, the inclusion of a variety of services and facilities in a single u
volume of development reqired is not only indicative of
development provides a secure and convenient environment in which people the vastness of the market, but also a major contributor
are able to time-manage their lives, work and play.” to its growth in terms of job creation.
Dubai 2008 Cityscape official show daily 37
NEWS update
Wasim Saifi Kingdom Tower, Riyadh
Qatari Diar forms
independent developer
of Lusail
New company for development,
construction and ongoing operations
Q
QATAR – atari Diar is to form a new company to
work on the development, construction and ongoing
operations on its Lusail project.
Q
The firm will be managed separately from atari
Diar, with Mohammed Bin Ali Al Hedfa appointed as
the chief executive officer.
He will report to chief executive officer of the
Q
atari firm, Ghanim bin Saad al-Saad, who said:
“ Q
Due to the incredible international growth of atari
Diar, the board of directors has decided that to
facilitate the ongoing success of Lusail, a new separate
Tamweel to provide company is formed.
“
Its sole purpose will be to focus on Lusail.”Al
financing for Corporate Hedfa stated that the creation of the new firm will
Tower investors Q
ensure atari Diar’s relationship with its customers
is personalised.
The new development will cover 35 sqareu
UAE lender partners with Sheffield Real kilometres and contain sufficient residential and
Estate to offer businesses finance commercial facilities to cater for an estimated
200,000 people.
DUBAI – Tamweel, the largest provider of real estate Q
Meanwhile, Steel Guru reported atari Diar had
finance in the UAE, has announced that it will offer signed a deal with a German engineering firm to
commercial finance to businesses interested in provide a national rail link between Bahrain and Doha.
buying office space in the Corporate Tower under Stand ZE10
development by Sheffield Real Estate, a subsidiary of
DUBAI GROUP
Sheffield Investments Limited.
u
Corporate Tower will total nearly 100,000 sqare
metres of commercial space spread over 44-storeys
and a 13-storey extension of office units, in the
mixed-use free zone development of Jumeirah Lake
Omani real estate
market continues
STEPS UP FOR
Towers in Dubai.
asim Saifi, group chief executive officer,
W
Tamweel, said: Tamweel is pleased to partner with
“ rapid growth
Sheffield Real Estate and offer exclusive finance to
end-users of Corporate Tower. Tamweel will offer
US$20 billion forecast for 2010
SAUDI ARABIA
tailor-made solutions to suit the needs of the project
u
and the specific reqirements of investors and OMAN – The Omani real estate market is expected
business entities.” to continue its rapid growth well into the future, with
Abuali Mallik Shroff, chairman, Sheffield analysts predicting that the value of demand will top
“
Investments Limited, said: Corporate Tower was US$20 billion by 2010.
launched to cater to the growing demand for office
space in Dubai. e are confident that Corporate
W
Financial services arm of Dubai Holding Market studies have also revealed that total
investments into the real estate sector in Oman
Tower will prove to be an attractive investment is founding member of Mazaya Saudi reached US$4 billion in 2007, up from US$0.75
opportunity for both end users and investors alike. million in 2005.
Tamweel has a solid track record of providing DUBAI – Dubai Group, the leading diversified financial services company Oman’s residential property sector captured
innovative financing solutions through their diverse of Dubai Holding, has become a founding shareholder in Mazaya Saudi the biggest share despite the recent increase in
product portfolio and unmatched service, and we for Commercial Investment Co. (Mazaya Saudi) after subscribing to a 20 real estate prices, thereby further underlining
look forward to working with them in offering the best percent stake. the competitiveness of Omani-based projects
financing options for our customers.” The transaction was completed through its subsidiary Dubai Capital across the GCC.
Sheffield Real Estate’s other developments include Group, which has invested approximately US$135 million in the Saudi The growth of investment into commercial
Marina 101, Marina Suites, Diamond Mall, Supreme u
company’s eqity. activities including the manufacturing and tourism
Residency, Universal Apartments and the Classic As a founding shareholder, Dubai Capital Group will play an important sectors is also expected to drive the demand for
Apartments projects. role in the development of the company and will be represented on its real estate this year.
To date, Tamweel has provided over US$3.7 billion board of directors. W
ith residential properties emerging as the highest
in financing for UAE projects. Stand 6B30 “
Soud Ba’alawy, executive chairman, Dubai Group, said: As the leading income-yielding investments within the Sultanate,
diversified financial services company of Dubai Holding, Dubai Group a
Dubai-based Eqrat.com, a total solutions provider
attaches paramount importance to diversifying, not only geographically, but to the real estate sector, is gearing up to launch the
also into multiple and profitable business sectors. Q a
first phase of ‘Al aser’ – US$168 million themed
“
This transaction is in line with our long-term strategic plans as we residential community project.
CITYSCAPE SOUNDBITE... believe Mazaya Saudi is ideally positioned to become a leader in the The luxury villas project will offer 180 three- and
SIPKE FAENSTRA W
booming Saudi real estate sector. e are also pleased to have forged an
association with Al Mazaya Holding, one of the most dynamic and visionary
four-bedroom villas with an average built-up area of
u
278 sqare metres, in addition to a service block that
Chief Commercial Officer, institutions in the GCC’s real estate landscape.”
Mustafa Farid Geninah, CEO of Dubai Capital Group, added: This “
will offer 90 furnished apartments.
The scheme is being developed by Arabian Gulf
La Perla International Living
W
hat are you hoping to achieve at Cityscape
transaction demonstrates our confidence in the Saudi real estate sector
where, it is estimated, that the long term demand for housing units is 1.3
million units up until 2015.
Gate Investment (AGGI), a leading developer of high
profile and specially designed projects.
The company’s stronger presence in the market is
Dubai? Introducing our global real “
Further market statistics indicate that only 45 percent of Saudi expected to further boost its Oman-based business
u
estate portfolio and our uniqe lifestyle families own houses, which means that in the long run there are real operations, which has been launched as part of its
concept, and at the same time increasing growth opportunities in this important sector. regional expansion strategy.
La Perla’s brand awareness in the UAE “
This investment will also contribute to strengthening our regional private W
“
e are expecting further growth in the Oman real
u
eqity portfolio, which has achieved superior returns in sectors such as estate market and our growing activities within this
fertilizer production, cement, glass, aviation and real estate development.” potential-laden destination is a testament to our strong
u
Headqartered in Riyadh, Mazaya Saudi will invest in attractive interest in increasing our presence and strengthen our
opportunities in the Kingdom’s real estate sector, targeting the middle and hold on the real estate services sector in the Sultanate,”
high end market in the residential, commercial and office segments. a
said Ali Hussein Al Rahma, CEO, Eqrat.com.
38 Cityscape official show daily Dubai 2008
DAY 1 REVIEW
JADE FUOCOGrenada
Laluna Estate,
Asif Khan UAE
Annur Capital,
Amanda Richter
Marbella Property
Louis DionneCanada
Noor Architects,
I am here representing an estate in the Caribbean and flew in from It’s only the first day but Investments, Spain Friends told me to go and
Grenada for the show. I am looking for an investor to buy the site, so far it has been very I’ve been coming to see the show, so I came.
which would be ideal for a resort development. So far I’ve had many good. I am looking to buy Cityscape Dubai since It will be interesting to see
u
enqiries. Throughout the real estate industry people know about Dubai. something and have already 2004. This time I am here how it goes over the next few
But for Cityscape you can’t imagine it until you actually see it. This q
visited uite a few developers on a fact-finding mission and to days and, more importantly,
exceeds all expectations and is like nothing I’ve ever experienced before. with a view to investing. There analyse market trends. So how the market pans out in the
are many interesting far, the show seems much future with all that has
developments being bigger than previous years. been happening in the US
showcased here. market in the last week.
Tony Colborne UK
Par Louvre Systems,
Christopher Alaa Hatachet
Jameel Square,
It’s large!e are looking
W
to move our business to
Pothan,
Palatial Properties, UAE
Saudi Arabia
This is a huge show!I flew
Dubai and I am here to get My first impressions are in from Jeddah for the event
an insight into what is going on. that some of the stands and have plenty of meetings
I have colleagues already based W
are very impressive. e are arranged for the week. Everyone
here and they recommended I considering moving out here to is talking about real estate
visit the show. This is my first work in real estate and I want development so I am here to see
Cityscape, and I will do to learn more about the what is new in the region.
both the Dubai and Abu market. The development This year’s show seems
Dhabi shows next year. seems to be ongoing. much bigger than last year.
Clarke
Layla UAE
Asteco,
George Moore
Entech Creative
Bhavesh Rachch
Impact Realty, UAE
Guy Geier
FXFowle, US
MichaelFM, UK
Interserve
Owen
This is my first time to Industries, US As developers and real As an exhibitor we are here I am here researching the
Cityscape Dubai. I went to The show is very impressive. estate agents, we have seen to network and generally facilities management (FM)
the Abu Dhabi show earlier I have flown in from the US a good number of people market the firm. The show market and have flown in
this year and that prompted me and have never seen a show coming to the show and are seems just as busy as from the UK for this show. eW
W
to come here. e are promoting like this. It is really positive. I’ve expecting to do some good last year and, if anything, are looking at entering the
our property developments and had some good meetings and I business. The extra day is a seems to be picking up. market and are here to see
are confident of a have certainly got a feel for big benefit to us. whether this is feasible.
W
successful week. e will how confident developers
definitely be back next year. are in the region.
TALK OF THE SHOW
Cityscape Dubai gets off to a great start as both exhibitors and visitors
enthuse about the bigger, better and one-day longer exhibition
Dubai 2008 Cityscape official show daily 39
NEWS update
Dubai Holding takes
stake in Acacia
US$76.9 million acquisition made
through Dubai Ventures Group
DUBAI – The Dubai Group, a subsidiary of Dubai
u
Holding, has acqired a controlling stake in the
Bahrain-based real estate firm Acacia.
u
According to the firm, the acqisition was made
V
through the Dubai entures Group at a cost of
US$76.9 million.
It means it is now the largest shareholder
in the company with four representatives on its
board of directors.
The investment is expected to provide the Dubai
Group with access to a new network of business
Powering the new partners across developed markets and a new range
of financial products.
pyramids Abdulhakeem Kamkar, chief executive officer
V “
of Dubai entures Group, said: This is a strategic
Timelinks to unveil city of the future V
investment for Dubai entures Group as we seek to
at Cityscape expand our real estate portfolio across the Middle
East and North Africa region, as well as other
DUBAI – Timelinks, a pioneering environmental emerging markets.”
design company, unveiled a sustainable city of the He added that the company is looking forward
future at Cityscape Dubai. to working with Acacia to add greater value to its
The city – Z is
called the iggurat project – designed investments and generate increasing returns.
in the shape of a futuristic pyramid which, according to u
Meanwhile, Dubai Group acqired a 26 percent
AQUITAINIA TO
Timelinks, could support an entire community of up to stake in a retail mall in Delhi via a joint venture with
one million people by harnessing the power of nature. the Anant Raj Group.
Ridas Matonis, managing director of Timelinks,
Z
“
said: iggurat communities can be almost totally
self-sufficient energy-wise. Apart from using steam
BE LAUNCHED
power in the building we will also employ wind turbine Marzooq Al Rashdan
technology to harness natural energy resources.”
But it is not just about reducing the carbon footprint.
u
The 2.3-sqare-kilometre pyramid has many other
W
“
benefits. hole cities can be accommodated in
ON THE WORLD
complexes which take up less than 10 percent of the
original land surface. Public and private landscaping
will be used for leisure pursuits or irrigated as
agricultural land.”
“
Matonis added: If these projects were realised
today, the world would see communities that are
sustainable, environmentally friendly and in tune with
Development to sit on fusion-border
their natural surroundings.” between France and Spain
q
The concept will also mean a better uality of life
for its inhabitants. Transport throughout the complex UK – Select Property, a UK-based developer, is to work with Dubai’s Select
would be connected by an integrated 360-degree u W
Group to build the Aqitainia luxury development in The orld project. Three major launches
network so cars would be redundant. Biometrics would
provide security with facial recognition technology.
The development is situated on the fusion-border between France and
Spain, two of the 300 islands which make up the real estate initiative. for Abyaar
Timelinks has already patented the design and According to the firms, the joint venture is a combination of Mediterranean
incorporated technology into the project, and has elegance with contemporary designs and modern style and will feature in 800
Arts precinct and towers for
applied to the European Union for a grant for u
units covering more than 92,903 sqare metres. Dubai developer
technical projects. Included in the development will be a mixture of one and two bedroom
A number of eminent professors from Europe will suites, three bedroom penthouses as well as a number of villas and DUBAI – Founded in 2005, Abyaar Real Estate
be on hand to explain the technicalities of how the penthouse apartments. The villas will have rooftop plunge pools with views Development is a joint venture between Kuwait’s
Z
iggurat project works and how these communities across the Indian Ocean. Aayan Leasing and Investment Company and Al
can be integrated in master projects. Stand MH40 u
Properties on Aqitainia are to adopt the names of some of the more Rashdan Group. Three new Dubai developments will
popular resorts in France and Spain to reflect the names of the islands be showcased during Cityscape – two new towers
they are located on. and an innovative arts precinct project. The
Barcelona, Marbella and Madrid are to be used for Spain while Cannes, properties will include Abyaar’s signature entrances,
Monaco and St Tropez will represent France said the developers. double-volume ceilings and contemporary inside and
outdoor social spaces.
Al
Marzooq Rashdan, vice chairman and managing
“
director of Abyaar, commented: Our aim is to
continually outdo customer satisfaction, and offer design
CITYSCAPE SOUNDBITE... q
and uality-conscious buyers property which surpasses
PATRICK GALLAGHER their expectations in terms of luxury and excellence.
Cityscape Dubai is one of the foremost property
Patrick Gallagher Decoratives and Design
W
hat do you think will be this year’s hot topics?
exhibitions in the world and therefore an ideal venue to
showcase and further emphasise our commitment to
luxury, passion and precision.” Stand 1D20
“
Cost effective approaches to environmental sustainability;
cultural identity in Middle Eastern architecture and the
impact of global economic decline on the Middle East.”
40 Cityscape official show daily Dubai 2008
update NEWS
Masdar CIty
DUBAI SPORTS
CITY OFF-PLAN
LAUNCH
The final residential Arabian-themed
building in Sports City released today
DUBAI – The fifth and final residential building in Dubai Sports
W
City’s Canal Residence est is released for sale today. Following
V
the success of the Mediterranean, Classic European, enetian, and
Andalusian-inspired buildings, the Arabian-themed residence is the
last in the series in the Downtown District of Sports City.
The development will offer studio, one-bedroom, two-bedroom,
three-bedroom, terrace apartments, duplexes and penthouses.
Z W
“
Khalid Al arooni, president, Dubai Sports City said: ith Dubai
Sports City’s stadia infrastructure growing at a rapid pace, and the
inauguration of the Els Club earlier this year, the demand for real
estate in this area has increased.”
Dubai Sports City incorporates international schools, medical
facilities, emergency services, parks, playgrounds, hotels, Next
Generation Clubs, internationally-renowned sports academies
(including the Manchester United Soccer School);and access to
state-of-the-art stadia, in addition to Arena Mall, the city’s largest
retail destination,
“
Significant research and investment has been deployed to ensure a
balance that enhances the lifestyle of Dubai Sports City’s residents,”
Z
added arooni. Stand 7G20
Dubai 2008 Cityscape official show daily 41
industry report FOCUS
REAL ESTATE ACTIVITY REPORT
AUGUST 2008: OMAN
GENERAL PRICE INDEX IN OMAN – TRENDS TRENDS AND MOVEMENTS IN RESIDENTIAL LAND PRICES u
The sqare metres transacted reached 268,000, marking a new
AND MOVEMENT The price of deals concluded in August went up by 2.4 percent u
level. And liqidity was affected by the rise in volumes and a slight
Omani real estate activity saw the best stability indices as with a cumulative increase of 12.1 percent since April, which drop in average prices;therefore, it went up by 29.2 percent, at a
regards the level of drop in deal volume and average price trends indicated a gradual rise in prices revealing a ‘natural activity’ in u
total value of US$151 million. More liqidity is expected to enter
in the Gulf region, during the month of August. The prices of deals without speculation or unrealistic hikes in average prices. the sector which promises lucrative opportunities unavailable in
concluded deals continued to rise at varying percentages while This indicates that activity in the sector will continue during the most of the region’s markets.
the volumes declined by less than the rates seen elsewhere u
coming period, depending on the prevailing sqare-metre-price of
in the region. US$203, which remains the lowest in the Gulf. TRENDS AND MOVEMENTS IN RESIDENTIAL
The commercial land sector saw a tangible hike assuming 30.8 The volumes of deals dropped by 11.1 percent, bringing APARTMENTS AND VILLA PRICES
u
percent of total activity and continuing to attract more liqidity u
transacted sqare metres to 1.3 million. The deals reflected an The index for deals concluded on residential apartments and
due to the rapid growth it currently enjoys as evidenced through improvement in the number and the areas transacted, compared villas has continued to rise gradually since April, increasing by
increasing demand for components of all sectors. to July. The sector still accounts for the largest share of the deals, 3.1 percent at a cumulative rate increase of 20 percent. This
The Omani real estate sector is expected to receive more local u
representing 81 percent this month. However, the liqidity invested indicates that the sector has maintained demand levels, which
u
and foreign liqidity, capitalising on the low prices and good dropped by nine percent as a result of the drop in the volume of are considered to be the highest in the Omani real estate sector
number of projects in the pipeline;dependent on the fact that the deals and the rise in average prices. due to lack of supply.
real estate sector remains attractive and provides development u
Total value of the liqidity circulated amounted to US$265 u
The price per sqare metre reached US$1,660, US$52 more
u
and growth opportunities which reqire some time to complete, million, indicating that the residential land sector still has good Y
than the previous price. et, increases are in the air depending
compared to development progress seen in other countries. investment opportunities for investors whether in the short, medium on the drop of prices in general, and increasing local and regional
Naturally, the flow of capital to countries with good investment or long-term. demand for villas at all levels and locations, with expectations of
opportunities and high profits reduces investment risk. sharper demand in the years to come as real estate development
The volumes of concluded deals fell by 10.7 percent, bringing TRENDS AND MOVEMENT OF COMMERCIAL companies look towards the sector.
transacted sqare metres to 1.6 million, still revolving around the
u AND INVESTMENT LAND PRICES u
The sqare metres transacted during August amounted to 36,500
levels seen during May and indicating the continuity of activity Noticeable activity was seen in the index for the commercial and at a total value of US$62.3 million. The period ahead is expected to
despite the fall. investment land sector, but was reflected in the form of a slight u
see more activity in terms of the level of volumes and liqidity values.
Liqidity circulation was affected by the number and volume of
u drop in the price of deals by 1.2 percent, at a cumulative rate
deals as well as the 1.5 percent drop in average prices;declining u
increase of 2.7 percent since April, where the price per sqare Data provided by Mazaya Real Estate Index
overall by 23.1 percent which eqaled US$478 million, in which
u metre amounted to US$946. In the land classified as both
the commercial land sector accounted for 31.6 percent and the commercial and residential, prices reached US$429 per sqare u
housing land sector 55 percent. metre, a figure seen as high compared to 2006. Prices on the
whole gradually climbed from deal to deal and month to month.
The volumes of deals went up by 30.8 percent, with cumulative
OMAN PRICE INDEX MOVEMENT
4500 rate increases hitting 217 percent since April, which indicates that
the commercial and investment land sector assumes the largest
4400 share of activity in the Sultanate and reflects more activity on the
commercial level in general.
4300
4200
4100
4000
3900
3800
3700
April 08 May 08 June 08 July 08 August 08
Dubai 2008 Cityscape official show daily 43
cityscape intelligence FOCUS
TRACKING SENTIMENT
Ian Ohan, head of investment transactions,
Jones Lang LaSalle, MENA, discusses the new
Investor Sentiment Survey and the economic
and real estate outlook for the Middle East
with Cityscape Intelligence
WHAT IS THE INVESTOR SENTIMENT SURVEY? TO WHAT EXTENT DO YOU THINK MIDDLE small amount relative to what you are seeing in invigorated by the leadership in terms of the 2030
The survey pooled the views of over 2,000 EAST ECONOMIES ARE INSULATED FROM the rest of the world. Part of it also has to do plan that has been put in place. Abu Dhabi has
members of the regional real estate industry RECENT GLOBAL EVENTS? with the fact that the international Commercial the ability to learn from what has happened in
including investors, developers, sovereign wealth Increasingly, the Middle East is going to be Mortgage Backed Securities (CMBS) market is Dubai and do things differently. But Dubai did
funds and high net worth investors and is the first seen and will play a more and more important q
a bit uiet these days, so the ability of banks what it had to do because they were the pioneers.
of its kind to be conducted in the region. It was role, going forward, in the global economy. The to take mortgages and package them up on a They targeted their own path and Abu Dhabi will
undertaken in the aftermath of the collapse of Middle East is affected, as are most regions, by u
securitisation basis, and free up liqidity, has do the same with that knowledge in mind. The
Lehman Brothers, and is thus the most up-to-date the recent events of the economic downturn. been curtailed, because international markets are economic power of Abu Dhabi going forward is not
and relevant source on investor sentiment in the W
e look at what has happened in some of the not there for that at the moment. something that should be ignored in the market,
MENA region. markets around the world, some of them have had and one of the findings of our survey was that
e focused on two main areas. The first looked
W very dramatic impact, whereas the Middle East WILL THE TIGHTENING OF LIQUIDITY HAVE the economic outlook for Abu Dhabi is probably
at global outlook and what investor sentiments has experienced a much milder impact. It will AN IMPACT ON LARGER PROJECTS? among the strongest in the region.
are towards the international real estate markets. certainly have an influence in terms of the way we For the larger projects, there is still financing
e examined several different areas within that,
W do business here. available. The big projects will happen, but they WHAT IS THE ATTITUDE OF INVESTORS TO
and the results were uite interesting. The other
q The important thing is that investors are going may start in phases or in a more measured way, SUSTAINABILITY IN THE REGION?
area we probed very deeply was what investors’ to be more selective here, as most investors are which again is a positive sign for the economy in The government of Abu Dhabi has taken the lead
real estate performance expectations are for internationally. There are still certain interests terms of bringing product on an as-needed basis. on this with the Masdar development, which will
the region. The specific areas that we looked at u
within the region and there is still a lot of liqidity The economic fundamentals of the market are likely set international benchmarks with respect
were what their views are on future operating so, going forward, there will be a greater focus still very strong and we shouldn’t forget that. to environmental sustainability. Associated
performance across geographies within the MENA on value, resulting in a return to real estate with the Masdar development will be a series
region. e looked at their short-term investment
W fundamentals. That is key to the market and, in TO WHAT EXTENT DO YOU THINK ECONOMIC of standards that will be adopted to provide
intentions, meaning are they buyers, builders or our view, is very encouraging. INFLATION AND THE INFLATION OF accreditation. It is starting in Abu Dhabi and is
sellers in terms of real estate investment?And Internationally, it is extremely difficult to find CONSTRUCTION COSTS ARE A PROBLEM? likely to be rolled out across the UAE, so there is
what their expectations are with respect to yields financing today, and in the region financing is Inflation of construction costs is a big factor a whole sustainability agenda here and Abu Dhabi
with income-producing properties, by asset class. certainly tightening. This is a good thing in the here and has contributed to rising prices of real has a bit of an advantage, simply because they
This is very interesting information in a market long-term, but in the short term it will create estate products. I do think we are reaching a are starting with that in mind.
that does not have strong benchmarks for value some difficulties. Having said that, you can still point where it is becoming a significant issue, In Dubai, if you talk to developers it is also
and pricing. finance projects here in the Middle East, which and will be one of the factors that will reduce the very much on their agendas. It is particularly
e also looked at the key influencers of
W makes it very attractive for international investors, realisation of supply in the short-term. Again, I important with respect to international corporate
investor decision-making, the impact of the in particular, who still have some eqity and
u see the reduction of supply, or a more measured occupiers who now have it within their charters
global credit crunch, and the perception of that capital to deploy and may not be able to do so in approach to supply, as a very positive feature of to only occupy environmentally-sustainable
within the Middle East. e also probed some
W their own markets. the economy in the Middle East going forward. buildings. So there is an impact on value, and
issues such as environmental sustainability, as soon as there is an impact on value then it is
the importance of sustainability and how that MIDDLE EAST COUNTRIES HAVE HUGE DO YOU THINK A CORRECTION IN THE DUBAI W
something investors respond to. e were actually
influences investment decisions. Some of the OIL REVENUES SO WHY HAS LIQUIDITY MARKET IS IMMINENT? surprised at the early number of respondents who
key findings focus around the theme of maturing TIGHTENED? The market has matured and the steps taken said that it does have an impact on their idea of
regional markets, the change from strongly There are a number of reasons why and many by the government are, by design, creating value and sustainable capital values. In terms
led
development– markets maturing into capital W
of those predate the all Street meltdown, but a more measured approach to the real estate of overall sustainability, the government has
market activities, and confirming our belief that were obviously exacerbated by that. A lot of cash Y
sector and controlling the economy. ou can put measures in place from an overall economic
regional transaction activity will likely continue to was drawn into the banking system in the UAE see this with the enhanced regulatory standpoint and the fundamentals are extremely
increase within 2009-10 for completed assets, from speculators looking to take advantage of the environment and the government focus on strong. If anything, the Middle East is very well-
as we move away from more development-led potential revaluation of the local currency. A lot transparency. There is a lot of legislation coming positioned to take advantage of weakness in other
transactions to more income-producing assets and of people were buying dirhams on the premise into play to protect investors and consumers. parts of the world to create a much more diverse
more fundamentals. that the Gulf would revalue its currency against Certainly some of the consolidation that is about and stable economy. There are the sovereign
W
e are also seeing that the Middle East is the US dollar peg. As people were speculating to happen now, and in the future, will protect wealth funds, and with their investment, it
continuing to be viewed as a source of economic on that, a lot of deposits came into the banking the integrity of the fundamentals of the economy. will create a much more diversified economic
strength, not just within the region but on a W
system. hen it became apparent that the W
e are heading towards a more mature state, base going forward.
global basis. The focus of the integration of revaluation was less likely, this reduced overall but implied with that is more moderate and The Middle East has always had a prolific
the Middle Eastern economies into the global deposit levels. The banking system here has been controlled growth, and this is a welcome sign number of international investors but I think now
economy means there is also the sense that largely self-funded in the past, simply because of for the industry. it is a different game. The scale of the foreign
the global economy is having an impact and is u
the amount of liqidity they have from operations. W
Abu Dhabi is on its own path. e have investment that is taking place is indicative of the
pushing and accelerating maturity as we become The government has announced a US$15 billion to appreciate that Abu Dhabi represents the region’s role in the next few years in the global
truly global players. u
bank liqidity programme but this is a very vast majority of economics of the UAE and is economy and this could be very significant.
Dubai 2008 Cityscape official show daily 45
OVERVIEW saudi arabia
MARKET OVERVIEW: SAUDI ARABIA King Abdullah Economic City
Saudi Arabia is the largest projects and it has recently
economy in the Middle East been reported this is set to
and the world’s largest exporter increase to US$400 billion.
of crude oil. As prices of According to GIH, under the
crude have increased, Saudi ‘10x10 Strategy’, the authorities
Arabia has amassed huge are looking to attract US$300
current account surpluses billion of investments in
and, like many countries in energy-intensive industries
the region, the government over the next 13 years. A
has opted to utilise the oil further US$100 billion of
windfall to implement a investments is also being
programme of diversification sought for knowledge-based
away from the oil sector. industries and a similar amount
The new 2000 Foreign for transportation ventures.
Investment Law provided the Despite the strength of the
legal structure necessary to attract Saudi economy, the Kingdom
additional foreign investment has not been immune to events
and the corporate tax on foreign- occurring globally. Rising
owned firms has been reduced food and housing costs sent
from 45 percent to 20 percent. Saudi Arabia’s inflation rate
According to Kuwait-based Global to a 30-year high in July. The
Investment House (GIH), this annual inflation rate surged to
has encouraged foreign direct 11.1 percent in the Kingdom
investment inflows to increase compared to 10.6 percent in
from US$183 million in 2000 to June, 10.4 percent in May and
US$18,293 million in 2006. 10.5 percent in April.
In April 2000, the Saudi Despite rising inflation and
Arabian General Investment a global economic downturn,
Authority (SAGIA) was according to a bulletin by Saudi-
established in order to promote based Jadwa Investments,
inward investments. In a 2006 over the next few years, the 2010, overall new real estate
report, SAGIA indicated it had Saudi economy has sufficient construction activity will reach INDUSTRY ANALYSIS: No. of Projects by Sector
licensed more than 4,500 internal momentum to perform US$130 billion in value. It
new projects worth more than strongly despite the weak global said that the majority of the per annum on average
US$100 billion since its outlook. An investment boom activity would be generated
inception, and that foreign financed by high oil revenues by the housing segment, Sector 2003 2004 2005 2006 2007 2008 Total Average Annual Growth
capital accounted for 46 percent earned in recent years, and followed by commercial office Financial Services 3 2 6 9 8 7 35 51.4%
of those licensed investments. supported by ongoing economic space units and retail.
In order to foster liberalisation set to underpin The housing sector in the
competitiveness in all regions strong growth in the non- Kingdom of Saudi Arabia is Real Estate 2 4 8 4 6 24 n/a
of the Kingdom, SAGIA has oil private sector. In short, expected to grow at an annual
launched four Economic Cities ‘global economic conditions rate of 6.3 percent throughout
in Rabigh (King Abdullah will affect the pace of this the Eighth Development Plan
Economic City), Hail (Prince growth, but will not derail it.’ covering 2005-2009. Due to the
AbdulAziz bin Mousaed In addition to economic rapid growth rate of new families INDUSTRY ANALYSIS: No. of Projects by Activity
Economic City), Madinah growth and the government’s (population growth is forecast at Among the top business activities Retail recorded the highest growth at 64 percent per annum
(Knowledge Economic City) and drive for investment and 2.5 percent), the plan expects on average
Jazan (Jazan Economic City). development, Saudi Arabia’s demand for housing to increase
Under the Foreign Investment real estate sector continues to by an additional one million Business Activities 2003 2004 2005 2006 2007 2008 Total Average Annual Growth
Act, 100 percent ownership is grow from increasing demand units. This represents an annual Retail 5 6 25 22 7 4 69 64.1%
granted to foreign investors at its from an extremely young average increase of 200,000 Manufacturing 4 7 9 15 10 14 59 34.2%
Economic Cities. population looking to become units and implies that the Business Services 5 3 7 8 11 9 43 36.3%
Saudi Arabia currently has future homeowners. The Saudi cumulative number of housing Construction 5 5 10 6 10 36 n/a
an estimated US$250 billion Arabia Investment Fund (SAIF) units in the Kingdom will reach Logistics, Distribution
of investment in construction estimates that through to almost five million by 2009.
GIH points out that Saudi Customer Contact Centre 1 1 2 n/a
Arabia is witnessing an Recycling 1 1 n/a
escalating demand from young
FDI
Source: fDi Intelligence from the Financial Times
middle income nationals.
Therefore, if it is to meet such
demand, 1.5 million new homes per year through 2010. start anywhere from US$21,300 especially for Class A
Figures from January 2003 to August 2008 will need to be built by 2015 According to Oxford Business and reach up to US$27,000, offices, is increasing as the
and it will be up to the financial Group (OBG), residential yields whereas owning one would be number of newly established
REPORT HIGHLIGHTS institutions (both governmental in Saudi Arabia are amongst no less than US$213,000. companies increases, and
and private sector) to provide the highest in the region, Rental and ownership prices in existing companies expand.
recorded a total of 322 investment projects from 228 the finance that makes this huge reaching 9.5 percent in parts Jeddah are approximately 80 This commercial growth is
companies expansion possible. of Riyadh. Residential units percent of prices in Riyadh. expected to continue as the
In view of the high demand account for close to 90 percent Prices are expected to Saudi economy opens up and
accounted for 11 percent of projects for housing, the number of of permits issued over the past climb further when the investment laws encourage
developments in the pipeline seven years, with Riyadh alone mortgage law is released. The more foreign investments.
Support, which accounted for 22 percent of projects is increasing. Over the past accounting for 35 percent of law, which is expected to be The lack of office space
three years, the Saudi Arabian the total, and Riyadh, Makkah passed this year, will establish in prime locations, such as
all investment projects with Carrefour (France), TPG General Investment Authority and the Eastern Region, which a housing finance market Riyadh and Jeddah, has caused
(Netherlands) and Hewlett-Packard (HP) (USA) among the (SAGIA) has said it has granted contains Jeddah, for 60 percent. which at present is virtually sharp upward movements in
top 10 licences to 50 new real estate In Riyadh, to rent a one- non-existent. Once mortgage rent prices. According to data
developers. SAIF estimates bedroom apartment would likely finance is in place, demand from OBG, the cost of office
Riyadh, Jeddah and Al-Khobar, providing 25 percent, 14 that the number of building to be in the range of US$3,000 is expected to increase due to space prices in prime locations
percent and six percent of investment projects respectively permits, which it cites as a to US$3,500 annually, and the young population wishing such as King Fahd Road, the
measure of real estate activity, US$35,000 to US$43,000 for to become home owners. main artery in Riyadh, have
will continue to exceed 37,000 ownership. Renting a villa would Demand for office space, increased from about US$180
48 Cityscape official show daily Dubai 2008
saudi arabia OVERVIEW
to US215 per square metre to The planned economic quality hotels achieved an
US$350 in just over one year.
Sales costs for prime office
space are from US$4,500
cities will see major retail
investments. The conglomerate
and food manufacturer Savola
average occupancy rate of 71
percent by the end of 2007,
up from 62 percent in 2005.
Market data
YIELDS BY ASSET CLASS
to US$5,500. However the Group, which administers Occupancy rates in Jeddah
standard of most stock is below 14 Saudi shopping malls, increased by three percent to % 2005 2006 2007
international expectations and has signed a memorandum reach 64 percent during the Office 9.5 8 N/A
Grade A space is rarely offered of understanding for the first same period. Similar growth Residential 9.5 8 8
for sale. Commercial yields phase of retail development rates in occupancy were Retail 8 7 N/A
in the capital are now around at Medina’s Knowledge recorded in both Makkah and Hospitality 11 8.5 N/A
seven percent; this is however Economic City, covering more Madinah with further increases
a decline from the 10 percent than 100,000 square metres in occupancy seen across the
yields achieved in 2000. in a deal worth US$133 market in Q1 and Q2 2008.
Jeddah is also experiencing million. The group plans to Average room rates have also SUPPLY
increasing levels of build a hypermarket and climbed, reaching US$140 in
development; Saudi Arabia’s more than 300 stores. There Riyadh and US$137 in Jeddah Sector 2004 2005 2006 2007 2008e 2009e 2010e
Prince Khalid bin Al Waleed are also plans for a second respectively, suggesting RevPar Residential
bin Talal Al Saud and the UAE- phase to expand the city’s of US$100 and US$87. (No. of Units) 4,390,000 4,520,295 4,654,458 4,792,602 4,934,846 5,081,313 5,232,126
based real estate developer retail space by an additional According to the Office
KM Properties have formed a 300,000 square metres. Proleads database, 17 new (GLA m2) 829,284 870,748 914,286 960,000 1,008,000 1,058,400 1,111,320
joint venture, KMPK Properties, International tourism arrivals hotel projects are under Retail
with the aim of creating around in Saudi Arabia increased development in Saudi Arabia, (GLA m2) 2,033,407 3,396,641 4,507,313 5,479,670 6,064,360 6,164,360 6,224,360
16,000 units within the next by around 150 percent over including the 10,000-room Hospitality
five years. the past ten years, to reach Jabal al-Kaaba complex in (4&5 Star Rooms) 45,074 47,135 49,492 55,431 59,865 62,858 64,116
Saudi is the largest retail an estimated 10 million in Makkah and 1,900 additional
market in the Middle East. 2007. Most visitors to Saudi rooms in Riyadh. Weighted Supply figures are total of Saudi Arabia
As population size and Arabia are from other Muslim against the consistent growth Office Supply - Grade A, Retail Supply - Shopping Malls
disposable income increase, countries and religious tourism in occupancy rates, this e = expected, f = forecast
the Kingdom is likely to accounts for around 65 could potentially result in a
become one of the fastest percent of all international marginal short term decline
growing markets for consumer tourism into the country. in occupancy before the
products in the Middle East. According to OBG Riyadh’s market again stabilises.
Dubai 2008 Cityscape official show daily 49
architectural awards REVIEW
Putrajaya Waterfront, winner, Residential Future
DESIGNS ON A NEW FUTURE
Cityscape rewards emerging market leaders in architecture
The real estate industry turned out in full force for the Cityscape Douglas Steidl, International Relations Fellow and past president, AIA
Architectural Awards last night. George Katodrytis, aaUAE board of directors and associate
Over the last few years this Cityscape event has developed professor, American University of Sharjah
into the world’s premier Architectural Awards ceremony for the In addition to the tremendous support provided by our
emerging markets. international judging panel, the awards were honoured to have
The awards recognise excellence in architecture and design, the full support of the Royal Institute of British Architects (RIBA),
from the emerging regions of the Gulf States, the Middle East, Asia, the American Institute of Architects (AIA) and the Architectural
Africa, South America, South and East Asia and Latin America. Association of the UAE (aaUAE).
They also seek to reward real estate industry professionals, projects, This support provides further recognition that the Cityscape
developments and architects that have shown outstanding designs, Architectural Awards plays a critical and prominent role in
performance, vision and achievement in key emerging markets and promoting, developing and recognising industry innovators and
project areas. achievers from the emerging markets.
A special feature of this year’s Cityscape Architectural Awards The awards and the seals of distinction were presented at an
was the introduction of a Young Architect Awards. elaborate and lavish gala dinner, held at the Grand Hyatt Dubai.
This award category was initiated by Meraas Development, the Over 800 industry professionals from the emerging markets
exclusive associate sponsor, to promote the development of young attended to celebrate and acknowledge industry figureheads who
talent in the architecture and design fields in the Emirates. have surpassed the already high standards of the industry.
The judges for the Young Architect Award had a difficult
time in deciding a winner. Eventually, after considerable debate
and discussion May Barber, a recent Bachelor of Science in
architecture from the American University of Sharjah emerged as
the worthy winner.
Within the main award categories, over 350 different entries were
received, from a wide range of emerging market countries.
To decide which projects were worthy of winning the awards
and seals of distinction, a judging panel, consisting of high profile
international judges, spent a whole-day viewing, deliberating and
discussing each and every entry.
The international judging panel consisted of:
Dr. Fatih Rifki, Dean of the School of Architecture and Design,
American University of Sharjah, UAE
Dr. Suha Ozkan, Chairman, World Architecture
Community, Switzerland
John Assael, Vice-president, RIBA Professional Services
Labour Housing, winner, Young Architect Murat and Melkan Gursel Tabanlioglu
Dubai 2008 Cityscape official show daily 53
architectural awards REVIEW
Signature Tower, winner, Commercial Future Xanadu Island Resort, winner, Leisure Future
May Barber
WINNERS OF THE COVETED AWARDS AND SEALS OF
DISTINCTION WERE:
Commercial / Mixed-Use Category – Built
Dogan Media Center, Ankara, Turkey
Murat and Melkan Gursel Tabanlioglu
Commercial / Mixed-Use Category – Future
Signature Towers, Dubai, UAE
Zaha Hadid Architects
Community Category – Built
Inkwenkwezi Secondary School, Cape Town, South Africa
Sonja Spamer Architects
Community Category – Future
National Kaohsiung Performance Arts Center, Kaohsiung,
Taiwan Mecanoo Architecten
Leisure Category – Built
City Art Square, Shatin, Hong Kong, China
Barrie Ho Architecture Interiors and Sun Hung Kai
Architects and Engineers
Leisure Category – Future
Xanadu Island Resort, Bodrum, Turkey
DSA Architects International The Toy Museum, winner, Tourism Travel & Transport Built
Residential Category – Built
Levent Loft, Istanbul, Turkey
Murat and Melkan Gursel Tabanlioglu
Residential Category – Future
Putrajaya Waterfront, Kuala Lumpur, Malaysia
Manfred Nicoletti
Tourism, Travel & Transport Category – Built
The Toy Museum, Singapore
Chan Soo Khian
National Kaohsiung Performance Arts Centre,
Tourism, Travel & Transport Category – Future winner, Community Future
Bab’ Bhar Resort, Fujairah, UAE Dubai Municipality
Draw Link Group Rohan Marwaha, managing director of Cityscape,
commented: “Once again we have had a tremendous
Young Architect Award response to the awards and received an impressive
May Barber, American University of Sharjah, array of nominations from all emerging regions.
School of Architecture & Design “Cityscape is proud to be organising and hosting
such a valuable vehicle to recognise and reward
Special Award – Environmental Award industry achievers from the emerging markets. These
Masdar Headquarters, Abu Dhabi, UAE awards would not be possible without the significant
Adrian Smith and Gordon Gill Architecture support and encouragement of the award’s sponsors,
many of which are returning year after year.”
Special Award – Islamic Architecture Award On behalf of Cityscape, Marwaha thanked the
Renovation of Shindagha’s historic mosques key sponsors. American Breeze, Etisalat, Bose,
Dubai Municipality Smart Box, LAB 23, Gaggenau, RAK Ceramics,
Revitalisation of Dubai Old Souq and MAF Dalkia.
Dubai Municipality He added: “We would also like to say a big thank
Revitalisation of historic Bastakia, you to Meraas Development, our exclusive associate
Dubai Municipality sponsor, for introducing the Young Architect Award,
an excellent initiative which will go a long way in
Special Award – Master Planning Award ensuring that young and aspiring UAE architects
Zorlu Center, Istanbul, Turkey play a leading role within the developing UAE real
Tabanlioglu Architects Co. and Emre Arolat Architects estate industry.”
Bab’ Bhar Resort, winner, Tourism Travel & Transport Future
Dubai 2008 Cityscape official show daily 55
day one REVIEW
RAZA SIDDIQUI
Executive Director,
Dubai Lifestyle City
What do you think will be
the hot topics at this year’s
event? The future of real
estate in the Gulf region and the
ripple effect being felt in the
real estate industry, as a result
of the international
financial crisis and falling
commodity prices
MIMIT BHUTA
Director, Ajit Bhuta and Associates
How important is it for you to be present at this
and other Cityscape events? ABA has grown into an
international architecture firm because of Cityscape
so all the events are important to us, and we plan to
participate in other Cityscape events in 2009
MEHDI AMJAD
President and CEO, Omniyat Properties
What do you think will be this year’s hot topics? Risk
assessment and the management of real estate investment
portfolios and green communities, as well as real estate
investing, sustainable developments and the challenges and
opportunities in the global real estate investment market
FROM THE SHOW FLOOR
The Cityscape show daily took to the halls to get feedback from exhibitors and visitors
on the first day of the exhibition. All agreed the event had surpassed all expectations,
with exhibitors looking forward to a week full of great business opportunities.
Dubai 2008 Cityscape official show daily 57
FOCUS oxford business group
Ummayad Mosque, Damascus
PLANNING FOR SUCCESS
In a bid to open its borders to foreign investment, Syria has developed a five-year
business plan, which will target construction and real estate as two essential
areas that are ripe for development, reports the Oxford Business Group
Economic growth in Syria has country’s construction sector. economy limits private sector and Turkey, despite the
been consistent for the past five While it still holds the lion’s participation, with a resulting current economic downturn in
years at an average rate of five share of development, it has lack of supply across the Lebanon following continuous
percent per year. Nominal GDP decreased its control in the country. For this reason, many political tension in Beirut.
grew by 18 percent in 2005 to past few years and has worked companies in Syria choose There are no internationally-
reach US$28 million, which to encourage the development to rent residential space operated retail centres in Syria
was the highest growth rate of private sector investment. and use it as an office. but the pipeline indicates
recorded by the country over the In 2005, the total amount In Aleppo there is currently a number of Gulf and Arab
past few years, according to the of construction area in Syria zero availability of Grade A office joint ventures with Syrian
Oxford Business Group (OBG) stood at 16.4 million square space, although Grade B and C government bodies. Many of
report published in The Market metres, which represented a stock is available in Jameliah these investment projects are
report for the Middle East. compound annual growth rate and Aziziah, both for rental and incorporating a retail component.
The IMF also predicts a (CAGR) of 55 percent since
real GDP growth rate of 4.6 2002. Contractors regard 2006
percent for 2008, below the and 2007 as the beginning
government’s own projections of of a phase of real growth.
more than five percent. Syria is Construction and real estate
not a major oil producer in the have been targeted as two
region or on the world stage, but essential areas that are ripe for
the sector remains crucial to the development. Most such activity
economy, contributing 50 to 60 has so far been concentrated
percent of total export earnings in Damascus, with increasing
and up to 25 percent of GDP. activity being seen in Aleppo
The country faces a number and other secondary cities.
of fiscal challenges, in addition Planning has also taken a step
to the problem of declining oil forward, with regional authorities
revenues. A number of economic working on the planning
reforms have been introduced documentation and strategy
to counter these challenges. that are needed as development
The recently approved activity across the country.
five-year plan has reinforced Residential prices in the
reform, stressing the prime suburbs of Damascus,
importance of further trade such as Malki, Mezzeh and
liberalisation, engagement with Kaffersusse, are between
the outside world, the freer US$3,000 and US$4,000 per
flow of goods and the need to square metre, while prices in
attract foreign investment. low to middle-income areas
Many reforms are aimed tend to cost US$1,000 per
at improving financial square metre and up. Rents per
intermediation, enhancing the square metre begin at US$100
business environment in the per square metre per year and
non-oil sector, unifying the climb to close to US$400 per
exchange rate, and strengthening square metre in Abu Roumani,
the monetary policy framework according to the OBG report.
as a means to reinforce market Housing prices in the capital,
mechanisms in the pricing of Damascus, rival those in
financial assets and to ensure European capitals, while Aleppo,
Citadel, Aleppo
the most efficient allocation of
private sector savings.
Through these reforms, the
government aims to accelerate
growth to an annual rate of
seven percent by 2010. These
Hamdanieh and Shahba have
been witnessing a construction
surge with luxury villas and
apartments in high demand.
Residential prices in
secondary cities are reported to
The recently approved five-year plan has reinforced reform, stressing the
importance of further trade liberalisation, engagement with the outside world,
the freer flow of goods and the need to attract foreign investment
(
goals are also encouraging more have risen by over 20 percent in
international companies to the last two years, while rentals
establish a presence in Syria. have increased by 40 percent.
The government has In the office space sector, purchase. As estimated by OBG, In Damascus, between currently under development foreign brands operate in the
traditionally dominated the the structure of the Syrian the current vacancy rates in 400,000 and 440,000 square in the city and if all these country at present – Sheraton,
existing building in both Aziziah metres of leasable area will projects are completed, supply Le Méridien, Four Seasons,
and Jameliah is 10 percent. be delivered to the market by of retail space will witness a Rotana and Sofitel. In addition,
Retail in both Aleppo and 2012, adding to the 41,500 tenfold increase to 200,000 there is the local Cham Palace
Damascus was, and often still is, square metres that currently square metres by 2012. Per chain of five-star hotels,
centred on its historical souks, exists and contributing to an capita space in Aleppo is which includes two hotels
street trading and local markets. increase in the city’s space per expected to rise from 0.005 in Damascus, and a smaller
Both cities do have a few capita from 0.0009 square square metres to 0.033 square Semiramis chain of four- and
boutiques, fashion outlets and metres to 0.09 square metres. metres in 2010 and 0.039 five-star properties. More
higher-class retail in high-end Shopping City and Aziziyah square metres in 2012. than half of Syria’s hospitality
residential areas like Mogambo Centre are the primary shopping With less than 40,000 beds supply is located in Damascus.
in Aleppo and Malki in centres in Aleppo, while New nationwide, many of poor In view of further growth,
Damascus, but these are more Town and Safeway are its first quality, the hotel sector is investments in hotels are
the exception than the rule. hypermarkets. Apart from these, significantly underdeveloped flourishing with over four
Syria is still quite the city lacks formal retail space, in Syria, according to OBG. new high-end hotels that will
undeveloped in Western retail with OBG estimating supply Currently the country has 17 be integrated into mixed-
terms when compared with its to be less than 20,000 square five-star hotels, 37 four-star and use developments being
neighbours in Jordan, Lebanon metres. A number of malls are 54 three-star hotels. Only a few planned in Damascus.
Damascus Bazaar
58 Cityscape official show daily Dubai 2008