Gulf Property November 14

Gulf PropertyGulf Property

Emaar and Dubai Holding to build

The LagoonsEmaar and Dubai Holding to build

The Lagoons

VOL. 7, NO. 2NOVEMBER 2014

WE ARE IN THE 7TH YEAR!

Dubai Wharf tochange the faceof Dubai Creek

EXCLUSIVE INTERVIEWSMohammed Al Habbai, Dubai Properties

Sultan Al Qadi, RAK PropertiesYousuf Kazim, Jumeirah Golf Estates

Mohammed Nimer, MAG GroupMahesh Tourani, Indigo Properties

Iseeb Rehman, SherwoodsMohsen Kamel, Azizi Investments

Imad Dana, Al ZorahBarry Ibrahimy, Al Hamra Real Estate

SPARKLE TOWERSTebyan to light upDubai skies withSwarovski magic

1 November Cover_Layout 1 01/11/2014 13:19 Page 1

Emerging stronger from the recessionThe regions premier monthly for lifestyle, real estate and construction

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Dubaisreal estate to change with the launch ofUnified Contract

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UAE Dh10/$3

Nakheel to reshape Dubaiskyline with Deira Islands

Gulf PropertyGulf PropertyVol. 6, No.7APRIL, 2014

Arabtec to buiild 1 millionhomes in Egypt for $40bn

Arabtec to buiild 1 millionhomes in Egypt for $40bn

We are in the 6th year!

Emerging stronger from the financial crisis!

Gulf Property isthe only real estatemagazine in the UAE tocontinue publication

through difficult times.We never stopped...

New GP Rate Card_Layout 1 17/09/2014 12:51 Page 1

FOCUSDubai Properties unveils majormaster-planned communities toexpand Dubais skyline 18Dubai Holding ropes in EmaarProperties to develop parts ofthe Lagoons project 24

NEWSUPDATEEmaar Properties sells Dh10.5billion worth of projects duringthe first 9 months of 2014 28Wasl Hospitality to develop 15hotels by 2020 30Azizi Developments to deliver 5towers, worth Dh700 million 32MAG Group develops Dh15billion worth of projects 34

Tebyan and Swarovski toSparkle Dubai skyline 40Damac fast-tracks sales anddelivery activities 44Al Barari adds new elements tothe botanical garden 54

EXCLUSIVE INTERVIEWSYousuf Kazim, GeneralManager elaborates on

Redwood 46Indigo Properties MaheshTourani upbeat about Zen 50Imad Dana explains why AlZorah will be a major buy 56Barry Ibrahimy speaks of AlHamras new projects 58Adil Toubia reveals Al Ghurairsplans to redevelop land bank 61Iseeb Rehman on Sherwoodsexpansion plan 64Sultan Al Qadi explains howRAK Properties turned aroundfrom the crisis 68Rawabi raises hopes forPalestinian dwellers 72

CONTENTSEDITORIAL

Gulf Property 11

The latest partnership announcement by Dubai Holding andEmaar Properties to develop parts of the stalled Lagoonsproject will go a long way in re-developing Dubais growingskyline. This reflects a shift in strategic thinking among themajor developers and turn them from competitors to part-ners something Dubai needs and will help the emirate to accel-erate its urban development plan. In addition to this, Dubai Properties, the property development

arm of Dubai Holding, has finally started works on the CulturalVillage - with Dubai Wharf development.Wasl, another major developer and manager of a large pool of

properties, said, it will develop 15 luxury hotels in the emirate - tomeet the growing demand for hotel rooms ahead of the WorldExpo 2020 exhibition, when Dubais hotel guests are expected todouble to 20 million annually, from the current 10 million.With this issue, Gulf Property continues its difficult journey to-

wards serving the regions real estate fraternity with increasedmarket penetration. I am pleased to announce that your favouritepublication is gaining grounds amongs the property developers,brokers and industry observers. With this edition, we strengthenour journey into the seventh year with renewed confidence as theworst for us and the real estate sector is over.In this issue of Gulf Property, we interviewed a number of in-

dustry heavyweights and veterans, including Mohammed Al Hab-bai of Dubai Properties, Yousuf Kazim, General Manager ofJumeirah Golf Estates, Mohammed Nimer of MAG Group, Mo-hammed Sultan Al Qadi of RAK Properties, Mahesh Tourani ofIndigo Properties, Adil Toubia, CEO of Al Ghurair Investments aswell as Mohsen Kamel, CEO of Azizi Investments, Barry Ibrahimyof Al Hamra Real Estate Development, among others.As Gulf Property continues its journey in to the seventh year,

we move ahead with firm conviction. I take this opportunity tothank all our subscribers, advertisers, contributors and partnersfor their support in our six years of difficult journey. At this critical juncture in our history, I am glad to announce that

we have quadrupled our print run to 20,000 copies to reach awider audience as we move from a business-to-business maga-zine towards a business-to-consumer publication.

T. Akhtar

Dubai Holding-Emaar partnershipwill go a long way in redevelopingDubais growing skylineDespite a lull in sale, developers arelaunching projects as well as awardingconstruction contracts as mid- to long-term growth outlook remains strong

12 REALTYBYTES

46 EXCLUSIVE

30 HERITAGE

GULF PROPERTYThe regions premiermonthly for lifestyle, realestate, construction andbuilding materials

EDITORIALEditorT. [email protected] ReporterParomita [email protected] Reporter/Sub-EditorIndrajit [email protected]

SALES AND DISTRIBUTIONCarol [email protected]

PUBLISHERT. AkhtarPan Asian Media MFZ LLC

LICENCELicenced by RAK Media City,authorised by the NationalMedia Council. Gulf Property isa publication of Pan AsianMedia MFZ-LLC

EDITORIAL AND COMMERCIALADDRESSPan Asian Media MFZ-LLCP.O. Box No.: 39865.Dubai, UAETel : (9714) 2281021Fax : (9714) [email protected]@panasian1.comWebwww.gulfpropertyme.com

CIRCULATION0,000 copies

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2

REALTYBYTES

12 Gulf Property

Nakheel rakes in Dh2.6bnprofits in 9 months of 2014Nakheel rakes in Dh2.6bnprofits in 9 months of 2014

Rezidor tooperate 30hotels inSaudi Arabia

Carlson Rezidor, aglobal hotel oper-ator, will manage30 new hotels inSaudi Arabia tobe built by Al HokairGroup, a Saudi invest-ment and developmentgroup, a joint statementsaid recently.

The new hotels will bebranded Radisson Blu andPark Inn by Radisson.Currently, the group oper-ates seven hotels in theKingdom with additional15 properties expected toopen within the next 30months.

The Kingdom offersmassive opportunity forthe development of hotels,domestic resorts and serv-iced apartments; and weare delighted to partnerwith Al Hokair Group thathas an unparalleled pres-ence, market reach andhospitality expertise in theregion," Wolfgang M. Neu-mann, President and theCEO of The Rezidor HotelGroup, said in a state-ment.

With this agreementRezidor and Al Hokair planto establish new RadissonBlu and Park Inn in themajor markets of Riyadh,Jeddah, Makkah, Medin,Al Khobar, Dammam,Jubail and upcoming sec-ondary cities of Jizan, Hail,Tabuk, Al Baha, Al Khafjiand Najran where busi-ness and investment op-portunities are driven bythe governments proac-tive approach to spreadwealth across differentparts of the country. g

Dubai property developerNakheel recorded a 47per cent jump in netprofits to Dh2.6 billion for thefirst nine months of 2014,compared to Dh1.77 billionrecorded during the same pe-riod last year. Its nine monthprofit is even higher than thetotal profits of last year, thecompany announced.

Strong revenue from prop-erty development and ongo-ing improvements inNakheels retail, leasing andleisure business performancecontributed to these robustresults, the company said.

During the nine monthsending 30 September 2014,Nakheel handed over 956units to customers. Its retailand leasing businesses con-tinued to perform strongly,with almost full occupancy ofavailable units for lease.

Nakheels leisure businessalso continued to deliver im-proved performance on pre-vious years, it said.

Nakheel also prepaid itsentire bank debt of Dh7.9 bil-lion four years ahead oftime during the first ninemonths of the 2014. Nakheelcurrently has a trade creditorsukuk of Dh4.4 billion, due tobe paid in August 2016.

The company remains fo-cussed on building cash gen-erating assets in the retail,hospitality and residentialleasing sectors to furtherstrengthen its financial posi-tion in the future, the state-ment said.

Nakheel Chairman AliRashid Lootah said: Wehave achieved a higher profitfor the first nine months ofthis year than we achievedthroughout the whole of

2013, so we are poised tosignificantly exceed lastyears results in 2014. Withthe bank debt repaid earlyand new cash-generating as-sets coming on stream,Nakheel is well on course tofurther strengthen its busi-ness and financial positiongoing forward.

Our robust financial resultsreflect the growth in the realestate sector in Dubai, whereNakheel continues to play astrategic and important role.Since the financial year end-ing 2010, Nakheel has re-ported a year-on-yearincrease in net profit.

Our financial performancereflects the strength of theunderlying business, increas-ing investor trust and confi-dence in Nakheel and theon-going support of the Gov-ernment of Dubai. g

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REALTYBYTES

Gulf Property 13

Sharaf and AlAli in newpropertyventure

Sharaf InvestmentGroup and Al AliReal Estate haveannounced theestablishment ofnew company, Dubai Gen-eral Properties for devel-oping real estate projectsin the UAE.

The company's Board ofDirectors has appointedYousuf Sharaf as the Man-aging Director of the com-pany alongside being amember of the Board ofDirectors. A real estateand construction veteran,he has vast experience inindustries, oil and gas sec-tors. He held many seniormanagement positions indifferent companiesaround the country.

The real estate sector inDubai is growing rapidlydue to the resumption ofstalled projects and thestart of new projects in themarket, said YousufSharaf. The market is wit-nessing massive invest-ments by national andinternational companies.Therefore, the indicatorsare very positive for thegrowth in the future, headded. Dubai is at an im-portant juncture in its his-tor with the arrival of theWorld Expo 2020 that willusher in a new era attract-ing invesment, trourismthat will necessitate thedevelopment of new proj-ects, said Sharaf.

Expo 2020 will attract 20million visitors to Dubai.The new company willparticipate in the futuredevelopment of Dubai, hesaid. g

Alitalia, Italys flag carrier,and Etihad Airways, thenational airline of theUAE, have unveiled two air-craft in a unique Expo Milano2015 livery to mark their co-sponsorship of the globalevent.

Expo 2015 will be held inMilan from 1 May 2015 to 31October 2015 with an esti-mated 20 million visitors ex-pected to attend the event ofwhich more than a third willtravel to the northern Italiancity by air.

The airlines held joint si-multaneous events atMalpensa Airport in Milanand Abu Dhabi Airport to un-veil the two Airbus A330-200aircraft, to audiences gath-ered in both locations as wellas thousands watching onlinearound the world.

The Alitalia A330-200 andthe Etihad Airways A330-200,both in the special livery, willcarry the Expo 2015 feedingthe planet, energy for life

message worldwide.James Hogan, President

and Chief Executive Officerof Etihad Airways, said: I be-lieve Expo 2015 will onceagain demonstrate the powerof travel and tourism to drivegrowth and stimulate job cre-ation and economic develop-ment in Italy.

Flight frequencies to andfrom Milan are set to increaseduring Expo 2015 when Ali-talia will commence dailyflights between MilanMalpensa and Abu Dhabi.These flights will connect withEtihad Airways servicesthroughout the Middle Eastand with markets in the In-dian sub-continent, South-east Asia, and Africa. Theairlines will link Milan with560 codeshare destinationsacross the globe.

Gabriele Del Torchio, ChiefExecutive Officer of Alitalia,said: The Expo 2015 logoexpresses a set of valuesand a vision shared also by

Alitalia: the pursuit of excel-lence, style and elegancetypical of the Made in Italybrand, the renowned cuisine,fashion, design and art thatare an essential part of ourcountry.

In addition to the joint liver-ied aircraft, Alitalia and EtihadAirways are offering a num-ber of business initiatives in-cluding all-inclusivepackages and special farestargeted at families, seniors,business travellers andyoung people for Expo 2015.

Alitalia and Etihad Airwayswill have a pavilion through-out Expo 2015 with an inter-active social hub.

Giuseppe Sala, CEO of theExpo 2015 Company, said:We set an important goal foreight million people to comefrom abroad and visit Expo2015. Thanks to these air-craft, and the other initiativesthat will be put in place in thecoming months, we are surewe will achieve this goal. g

Etihad-Alitalia in ExpoMilan 2015 promotionEtihad-Alitalia in ExpoMilan 2015 promotion


REALTYBYTES

14 Gulf Property

Lifetime AchievementAward for AlabbarLifetime AchievementAward for AlabbarTasweekexpandsportfolio

Tasweek Real Es-tate Developmentand Marketing, anadvisor and solu-tions provider serv-ing the property markets,said work on its third in-vestment of an 11-villa re-sort being developedunder a joint venture withCasabrina Vacation Villashas begun.

The latest Villa will formpart of the sprawling lux-ury Casabrina VacationVillas luxury vacation com-plex located at the foothillsof Pahang, the largeststate in West Malaysia.

This follows the recentcompletion of two projects.All Villas will providepanoramic views of thesurrounding ancient rain-forest and is a master-piece of the renownedBalinese architect AAYoka Sara who has beencommissioned to designthe rest of the upcomingvillas as well. Felix Tree,the renowned Malaysianentrepreneur, is the cre-ative force behind the am-bitious development.

Tasweek will marketnine of the boutique villa-hotels spread over 30acres of lush hillside landunder a Shariah-compliantscheme. The firm haspartnered with aMalaysian financial institu-tion to provide mortgageto buyers from the MiddleEast. It will also offer spe-cial packages to visitorsfrom the GCC who want tobook any of the projects,thus grooming the devel-opment as a gateway be-tween Gulf residents andMalaysia. g

Mohamed Alabbar,Chairman ofEmaar PropertiesPJSC, the globaldeveloper oficonic projects, has been ho-noured with the LifetimeAchievement Award at a cer-emony recently.

Alabbar received the hon-our from Ms Arlene Foster,Britains Minister for Enter-prise, Trade and Investment,at a glittering ceremony thatalso recognised UAEs indus-try leaders across diversebusiness sectors.

Congratulating the winners,Alabbar said: From family-owned business leaders toinnovative entrepreneurs, theprofiles of the winners reflectthe diversity of Dubais busi-ness sector. It also highlightshow our city supports entre-preneurship and offers astrong growth environment,which is underlined by theevolution of Emaar as a Na-tional Champion company ofDubai.

His Highness Sheikh Mo-hammed bin Rashid Al Mak-toum, UAE Vice Presidentand Prime Minister and Rulerof Dubai, has been the inspi-ration and guiding force inour growth journey. The can-do attitude he instilled helpedus to achieve what othersperceived as impossible. Ouriconic projects such as BurjKhalifa, the worlds tallestbuilding, and The Dubai Mall,the worlds most visited retailand lifestyle destination, aretoday the civic pride of ournation.

Alabbar said that Emaar ismoving into the next era ofgrowth with the listing ofEmaar Malls Group, which isone of the largest public offer-

ingsin ther e g i o n .We were oneof the first compa-nies to be listed on the DubaiFinancial Market in 2000, andnow we are setting anothermilestone with a truly interna-tional IPO by a Dubai-basedcompany through a book-building process.

A global entrepreneur withactive interests in high-value

prop-erty de-

velopment,retail, luxury hos-

pitality, mining and commodi-ties in international markets,Alabbar was the founding Di-rector General of the DubaiDepartment of Economic De-velopment (DED), andserved as a member of theDubai Executive Council andDubai Economic Council. g

Dh9 bnDh9 bnDividend declared by Emaar

Properties boardDividend declared by Emaar

Properties board


REALTYBYTES

Gulf Property 15

Dubai to host Lapita HotelDubai to host Lapita Hotel

Dh2.5 bnDh2.5 bnvaluation of Amanats capitalbefore initial public offeringvaluation of Amanats capitalbefore initial public offering

Dh2.6 billionnet profits generated by

Nakheel in 9 months of 2014

Dh9 billiondividend declared by Emaar

Properties recently

180,000 the number of jobs that were

created by the chemicalindustries sector in 2013

At A Glance

Dubai Parks and Re-sorts LLC has an-nounced plans todevelop a Polyne-sian-themed familyhotel as a key component ofDubai Parks and Resortsproject that is taking shape inthe Jebel Ali area. Construc-tion of Lapita Hotel com-menced in February 2014,with the opening scheduledfor 2016.

The 503-key Lapita Hotelwill form part of the Auto-graph Collection, an exclu-sive ensemble ofindependent luxury hotels,within the Marriott Interna-tional brand portfolio.

Lapita takes its name fromthe pre-historic Pacific Oceanpeople who were considerednautical experts and ances-tors of the Polynesian race.Drawing inspiration from theexotic Polynesian tropicallandscapes, Lapita will fea-ture a dramatic faade andlush settings that fuel theimagination.

Commencing with the prop-ertys expansive pathways

sprinkled with the vivaciouscolors of Polynesian flowers,the brand experience willcontinue with the lagoon stylepools, themed activities anddining options.

An in-house entertainmentcomponent will serve as akey attraction for the young atheart. Lapita will also featurerelaxation zones designed to

provide unparalleled tranquil-ity.

The property will particu-larly help us target visitors toDubai Parks and Resorts andeventually contribute to thedestinations tourist footfall.

In addition to Lapita Hotel,the development will com-prise Bollywood Parks Dubai,Legoland Dubai and Motion-

gate Dubai. Centrally locatedbetween the three themeparks, Riverpark will serve asan entrance plaza featuring amlange of retail, dining andentertainment options.

Strategically located inJebel Ali between Dubai andAbu Dhabi, the mega projectis slated for completionsometimes in 2016. g

68% of GCC leisure travellers optfor family-centric vacations

$200bnworth rail and metro

projects either planned orunder way in the MiddleEast. This translates tomore than 33,700km of

mainline routes and3,000km of metro


REALTYBYTES

16 Gulf Property

SPF leader MahendraSingh gets award, again!SPF leader MahendraSingh gets award, again!RICS getsTaqeem job

The Saudi Authorityfor Accredited Val-uers (Taqeem) hasrecently signed aknowledge sharingand training agreementwith the Royal Institutionof Chartered Surveyors(RICS) to strengthen valu-ation services.

Taqeem has commis-sioned RICS to develop aprofessional developmentprogram for senior gov-ernment staff, other rele-vant public sectorstakeholders and ap-praisal committee mem-bers involved in eminentdomain in the Kingdom.

Eminent domain, orcompulsory purchase asit is also known, is exer-cised when governmentsuse their legal capacity tobuy or take rights over pri-vate property to be devel-oped for the benefit of thepublic. Examples may in-clude airport expansion,road and rail / metro proj-ects.

The training will focus oninternational best practiceincluding compensation,principles of asset valua-tion using InternationalValuation Standards, thelegal implications as wellas case studies and prac-tical application. g

Mahendra PratapSingh, ManagingDirector of SPFRealty - thelargest real estatebroker in the UAEs freeholdproperty sector - has beenconferred with Real EstateBrokerage CEO of the YearAward at the fifth edition ofthe CEO Middle East Awardsheld recently in Dubai.

The award was bestowedupon Singh in recognition ofhis vision to spearhead SPFRealtys outstanding growth,acting as an extended arm ofseveral premium developersin the UAE market.

SPF Realty was estab-lished in 2005 in Dubai with avision to offer holistic solu-tions to all property-relatedrequirements. The companymainly focuses on Real Es-tate Sale Brokerage and RealEstate Lease Brokerageservices. SPF Realty hasstood firm through the upsand downs of the nascentreal estate market in Dubai toemerge as a leader in thesector.

The coveted accolade hon-ors CEOs from across indus-try sectors, recognising theirbusiness excellence andoverall business success andacknowledging the vital con-tribution they make to the vi-

brancy of business in the re-gion.

Singh said, Our success isa reflection of the tremen-dous confidence and trust ofthe developers as well as in-vestors in our marketingstrategies and service stan-dards. We care more aboutour credibility than money. Ifwe remain credible and trust-worthy, money will follow, heemphasized that success of

his company lies in team-work, It is the collective effortof the SPF team.

With unmatched marketexpertise and uncompromis-ing service quality as ourbackbone, we offer ourclients a complete and cus-tomised service advisorypackage that assures appre-ciation and return on invest-ment, the company said in astatement, he added. g

Paromita Dey, SeniorReporter, Carol Fernandes,

Sales and DistributionManager and Indrajit Sen,

Senior Reporter/Sub-Editor ofGulf Property, receives an

award for the publication atDubai Real Estate B2B

Conference held at the Ritz-Carlton hotel in Jumeirah last

month as it celebrated sixyears of uninterrupted

publishing of the magazineunder challenging times

RECOGNITION FOR EXCELLENCE


REALTYBYTES

Gulf Property 17

Deyaar profitjumps 94%

Dubai-based de-veloper DeyaarD e v e l o p m e n tPJSC has re-ported a 94 percent jump in consolidatednet profit to Dh78.47 mil-lion for the third quarter of2014, up from Dh40.48million registered in thesame period in 2013.

Aided by robust propertysales booking and prop-erty delivery, the net profitfor the first nine months ofthe year rose 122 per centto Dh193.04 million, com-pared to Dh87.15 millionfor the same period in theprevious year.

Meanwhile, total share-holders equity of theproperty company stoodat Dh4.3 billion, with totalassets recording Dh6.1billion.

Saeed Al Qatami, ChiefExecutive Officer ofDeyaar, said: Driven byour robust growth in ourdiversified real estate port-folio, we have once againrecorded outstanding re-sults. The third quarter wit-nessed aggressiveinvestments in the hospi-tality sector, providing theright mix of competitiveprojects and services thathave helped consolidateour position in the residen-tial and commercial realestate industry and entryinto the hospitality sector.

Needless to say, we re-main committed to our pri-ority of enhancing valuefor our customers andsafeguarding sharehold-ers trust.

Deyaar recently con-cluded the sale of residen-tial units in tower-1 of theMontrose project, with themajority of units sold. g

Dubai Investments Park[DIP], anintegrated com-mercial, industrial andresidential community inDubai wholly-owned byDubai Investments PJSC[DI], has attracted more than3,500 companies across awide array of sectors over thelast 17 years.

The park today hosts anumber of multinationals andinternational brands, includ-ing Danzas, Aujan Industries,Transmed, M.H. Al Shaya,Dubai Refreshments Com-pany [Pepsi], PermasteelisaGartner ME LLC, Mapei-In-novative Building Solutions,Larsen & Toubro [L&T],Weatherford Oil Tool andamong others who have setup their regional headquar-ters within DIP.

Omar Al Mesmar, GeneralManager of DIP, said DubaiInvestments Park has pio-neered the model of commu-nity development with itsbustling business and resi-dential concepts as also staffaccommodation. DIP wasconceptualised with a mis-sion to bring new businessesand industries in a compre-hensively-planned businesscomplex.

Today, we are proud to behome to over 3,500 compa-

nies fromvarious sec-tors indus-trial tomanufactur-ing to tradingwho haveset up basein the park.In fact, DIPserves as ar e g i o n a lgateway for a number ofcompanies.

Approximately 59.5 millionsquare feet of space withinthe 2,300-hectare DIP arereadymade facilities, whichincludes 3,000 warehousingand industrial units. Thesealso cover a number of facto-ries which contribute a signif-

icant share to UAEs GDP. According to Knight Frank

research released in July2014, rental values in indus-trial parks such as DIP haveexperienced double-digitgrowth compared to last year.Rentals in Class 2 buildingsin DIP have gone up by 47per cent year-on-year whilethose in Class 1 buildings inDIP have risen by 29 per centover 2013.

DIP is today a boomingcity-within-a-city, accentuatedby over 30 office buildings, 25showrooms, five schools,three hotels, besides 292 res-idential and staff accommo-dation. It offers104-kilometres of internalroad network with well-devel-oped infrastructure. g

Dubai Investment Parkattracts 3,500 tenantsDubai Investment Parkattracts 3,500 tenants


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18 Gulf Property

DP: Reshaping Dubaisurban landscapeDP: Reshaping Dubaisurban landscape

They have projects invirtually every part ofDubai. And they aremarching forwardwith many moregrand developments. Withpremium residential andcommercial projects inJumeirah Beach Residence,Dubailand, Culture Villageand the Downtown, megareal estate developer Dubai

Properties today is not just abuilder but also a key con-tributor to Dubais economy.Dubai Properties is the

property development arm ofthe larger Dubai PropertiesGroup (DPG), part of theDubai Holding conglomerate.The developer constantly en-deavours to deliver projectsthat cater to all sections ofthe emirates expanding pop-ulace and contribute to theoverall growth of Dubais realestate market.The company is part of

Dubai Governments visionto reshape the urban land-scape of the emirate as it at-

tracts foreign investment,businesses, professionalsand families - who needproper commercial, residen-tial and entertainment spaceto enjoy a quality life.Since its inception, the

company has developedsome of the most soughtafter destinations includingJumeirah Beach Resi-dences, Business Bay and acluster of theme parks underthe umbrella of Dubailand.In an exclusive interview

with Gulf Property, Mo-hammed Al Habbai, ChiefOfficer for Urban Planningand Infrastructure of Dubai

Properties Group, elaboratedon the companys goals andstrategies, upcoming proj-ects and how his companyplans to contribute towardsthe overall progress of thereal estate sector in Dubai.Presently Dubai Properties

is engaged in developing agrowing portfolio of retail,commercial, residential andmixed-use projects to meetthe growing demand of realestate investors in the re-gion.The year 2014 has been

quite good for Dubai andDubai Properties Group,Habbai said with a smile.

By Indrajit SenSenior Reporter

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Bay. Designed by famedAmerican architects TVS De-sign, the luxury residentialproject would boast of aunique glass design and highquality finishing. The pilingand enabling contract beingawarded to engineering firmNSCC. Habbai said the con-struction will be done in justone phase and expects it tofinish in 2017.The two 27-storey towers

will have unit options includ-ing 1,2,3 and 4-bedroomapartments along with six ex-clusive penthouse suites withspacious layouts and pre-mium finishing. Residents

can also benefit from an inti-mate community feel withcommon lobby areas sharedby a maximum of four apart-ments per floor and a stun-ning 19th floor viewing bridgeoffering visual treats of thesurrounding skyscrapers.Maram Residence will in-

clude a business lounge, anindoor childrens play area,an outdoor childrens playand pool area, a state of theart gym and fitness area, ajogging track, a roof-top gar-den with seating areas andwater features, and an infin-ity pool deck at roof level witha lounge.

A vast landscaped outdoorterrace on the ground floor isalso planned for the residen-tial tower and will be com-plete with seating areas,water features and a varietyof community and retail out-lets for the convenience ofresidents.Dubai Properties has in-

vested a huge amount ofmore than Dh400 million intothe project to ensure thatbuyers are only deliveredsupreme quality in every re-spect. Yet according to Hab-bai the prices of units beginsfrom a modest Dh1.7 million.The pricing structure reflects

The response from the mar-ket was very good and it wasvery successful for us.

Living inDubais heartSpeaking of the premiumresidential projects DubaiProperties is developing,there is one that deservespraise. Being constructed in the

beating heart of Dubai,Maram Residences whencompleted will be minutesaway from the Burj Khalifaand overlooking Business

Dubai Wharf will bea sought-afteraddress in thehistoric Dubai Creekarea. The design,positioning andaccessibility of theproject will alsomake it one ofDubais futurelandmarks forleisure, dining andentertainment...

Mohammed AlHabbai

Mohammed Al Habbai, ChiefOfficer for Urban Planningand Infrastructure of DubaiProperties Group

An artists impression ofDubai Wharf, part of theCultural Village a newmixes-use development

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20 Gulf Property

the developers focus on af-fordable housing and proveshow socially obliged they areto cater to the mid-incomesegment of the market. Through Maram Resi-

dences, Dubai Propertiesseeks to offer its buyers thebest of an urban living expe-rience with a panoramic viewof one of the worlds iconicskylines. Maram Residencewill cater to the increased de-mand for luxury residentialand commercial property instrategic locations acrossDubai, and we anticipate thatits launch will further supportthe development of Dubai bycatering to its growing popu-lation, Habbai stated. Dubai Properties decision

to launch the project duringCityscape Global was strate-

gic. The market was verypositive, it exceeded our ex-pectations, he remarked.

EmbellishingCulture VillageAs part of their mix-usedportfolio, Dubai Properties isdeveloping a sprawling proj-ect named Dubai Wharf. Theproject is intended to be amodern development featur-ing a contemporary design inthe Culture Village district,overlooking a canal prome-nade adjacent to the historicDubai Creek. To be locatednear Al Jaddaf metro station,with easy access to Al KhailRoad, Business Bay cross-ing and Al Jaddaf Road,Habbai expects the project to

be ready by 2017.The mixed-use project fea-

tures four towers with 582residential units, approxi-mately 150 retail, dining andentertainment units on theground and first floors andover 2,000 resident and visi-tor car parking spaces atbasement level. There are multiple apart-

ments including 91 studios,147 1-bedroom, 276 2-bed-rooms, and 68 3-bedroomsunits, located in the secondto eighth floors. Pedestrianbridges over the canal offerfull connectivity throughoutall Culture Village structures,while three pedestrian pas-sages provide convenientseamless entry points toDubai Wharf, retail facilitiesand the canal promenade.

Tenants will also have exclu-sive access to residences. Dubai Properties has in-

vested Dh800 million in tothe project. Prices of residen-tial units begins from an af-fordable mark of Dh1.1million. Dubai Wharf will bea sought-after address in thehistoric Dubai Creek area.The design, positioning andaccessibility of the projectwill also make it one ofDubais future landmarks forleisure, dining and entertain-ment, Habbai commented.The contemporary archi-

tecture used throughoutDubai Wharf presents astone exterior with a largeproportion of glazing andwooden textured shadingused to soften the overalllook and feel while playing a

Dubai Wharf, part of theCultural Village, will createnew living and entertainmentspace on the bank of theDubai Creek

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functional role of the build-ings climate control. In line with the natural ebb

and flow of the Creek envi-ronment, two of the towersfeature eight floors while theremaining towers featureseven floors, presenting aridged impression from anaerial view. Unit interiors feature

deluxe finishing with highquality porcelain ceramictiles, wooden doors, andmarble and granite toppedwork surfaces and vanitycounters. The developer has laid em-

phasis on health amenitiesby making provisions for aswimming pool and anequipped gymnasium on thepodium level. The facilitiesoverlook the canal system

itive and promising. The mar-ket has regained the con-sumers confidence, becauseof the regulations imple-mented by the governmentand the Real Estate Regula-tory Agency (RERA) mainly.The response has been very,very positive, Habbai confi-dently says.Given his optimistic views

on investors sentiment andthe markets vigour, Habbaiis quick to quash the notionof a bubble in the market orpredictions of a repeat of the2008 recession, as baselessor unfounded fear. The regulations by the au-

thorities, with regards totransparency issues such asescrow accounts, haveproven quite beneficial forboth the developers and theend-users, he says. Thatkeeps the balance in themarket.Habbai also rejected pre-

dictions made by the mediareports that the housing mar-ket in Dubai underperformingand the sales of decreasing.I wouldnt say that the salesvolumes for villas have gonedown. If we look at our villaproject Mudon a premierresidential project in Dubai-land Phase 1 and Phase 2have been sold out. Hencewe are going to launchPhase 3 soon, he stated.However Habbai admits

that the commercial sector inDubai has not been at parwith the residential. Sales ofoffice spaces have slumpedand the trend is not pleasant.Yet Habbai sees promise forthe commercial segment infuture. In commercial, there is still

shortage in certain areas foroffice spaces, especially likein Tecom, Knowledge Villageand in Business Bay, he

with green spaces created toensure a relaxed living expe-rience for inhabitants of eachof the four towers.Speaking highly of this

flagship project, Habbai said,The project is a contempo-rary architecture which I amvery proud to present toDubai residents, local andforeign investors, and themillions of tourists which visitour city every year.

Dubai marketDubais popular stature as aregional commercial hub andas a global financial andtourism destination has hada superb impact on the emi-rates real estate market. The metropolis has seen

massive relocation of individ-

uals and families from theUK, US, Europe, China, andAfrica, besides the long-standing migration from Indiaand other Asian nations,since the end of the reces-sion. New jobs are being cre-ated and trade in all sectorsis flourishing, mainly due toDubais investor-friendly poli-cies and the fact Dubai isone of the safest and prom-ising centres to do business. As a natural corollary, the

demand for housing and of-fices is only seeing an as-cent, thereby creating abright future for both buildersand buyers. That is some-thing Habbais Dubai Proper-ties would love to bank onand grow.The Dubai real estate

market right now is very pos-

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22 Gulf Property

concedes. But the demandwill definitely be there, espe-cially with the movement ofnew companies and alsoExpo 2020. We can feel thedemand will rise, but obvi-ously the residential part willlead.On a different frontier, the

Dubai market since the endof the recession period, haswelcomed multiple foreigndevelopers. Many suchrenowned builders fromIndia, China, Turkey, Egyptand many other Asian, Eu-ropean and Arab nations aresetting up camps in Dubai toattract investments for theirproject. This fact was recently

demonstrated by the healthyparticipation of myriad over-seas realtors and brokeragefirms in Cityscape Global.inmultiple property expos.However it can be saidthese foreign realtors whoare coming into Dubai aremostly entering the marketwith the sole aim of wooingclients from their respectivecountries to buy propertyback home. Thus, in this manner, isnt

Dubai losing out on loads ofinvestors, who would haveotherwise bought propertyhere? Isnt their influx achallenge to the localbuilders?I would not say so be-

cause as you knowCityscape is a very impor-tant platform for the real es-tate industry within theregion and also importantfor other countries, Habbaijustifies. I think the marketis open to everyone and Idont think that is scaring. Itis a good opportunity forboth parties to collaborate.No, I would say it is a com-pliment to Dubai.

Budgethousing Mid and low-income groupsin the UAE are expandingand will continue to expand,

given the steady flow ofexpat workers vis--visExpo 2020. These groups comprise

people who will naturally in-vest in low-cost housingprojects. Thus affordablehousing has gained im-mense importance and pop-ularity in the UAE, andbuilders developing low-costprojects have also earnedhealthy profits. The demand for premium

residential and commercialproperties remains high inDubai today. But in the longrun, winners will be thosewho reap the benefits fromdeveloping or trading in af-fordable projects, since the

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budget properties segmentis as promising as the elitesegment, and the former willonly grow further with a rap-idly increasing customerbase.Considering the changing

dynamics of Dubais prop-erty market, Habbai revealsDubai Properties has fine-tuned its strategy to tap intothis vast and promisingbudget properties segmentof the market, despite mostof their projects so far beinghigh-end and elite. We have a vast portfolio

with projects like Remraamand Mudon. We are going tobuild about 30 buildings inRemraam in the next 3

years, due to high demandin this [affordable housing]sector, he reveals. So we at DP are not ig-

noring the sector. In fact, webelieve there is a healthymarket for the middle in-come class. Majority sayaround 45 per cent, will gofor middle income housing.The high-end market is onlyaround 15-20 per cent,Habbai says.In fact Habbai says Dubai

Properties emphasis onbudget projects in spite ofbeing primarily a developerof luxury properties, differ-entiates them from the othergiants in the market today. We at Dubai Properties

differentiate ourselves fromthe other developers inDubai, because we have alarge portfolio that includeslabour camps, self-accom-modation units, middle-in-come to the high-endhousing, retail as well as inthe hospitality sector, heelaborates. We cater tomarket needs.Dubai Properties focusses

solely on delivering inte-grated, end-to-end projectdevelopment solutions, andthis strategy has led to theirsuccess. From design anddevelopment, to sales andhandovers, Dubai Proper-ties has been doing it all indetail. The developer has

dedicated departments han-dling sales, marketing, engi-neering and businessdevelopment. The companyfocusses on providing func-tional, sustainable and highquality solutions along withself-contained communaland convenient amenitiesfor end users. As part of its broader cor-

porate strategy, the devel-oper also works closely withleading construction compa-nies, architects and govern-ment entities to give animpetus to the real estatemarket. The Dubai Proper-ties Group will always aimfor achieving goals forDubai, Habbai affirms. g

Dubai Wharf will create a newwaterfront community indowntown Dubai

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24 Gulf Property

Emaar & Dubai Holdingin Lagoons ventureEmaar & Dubai Holdingin Lagoons venture

If you thought Dubaisreal estate market isgrowing only due toproperty developmentsin the upcoming areas,think again.

The property market inDubai is not just about thegrand luxury projects in loca-tions such as Dubai Marina,Jumeirah, Business Bay,Dubai World Central and thelikes. Two of Dubais giantsEmaar Properties and DubaiHolding have proved thatthere are developers whoare equally focussing on re-vamping Old Dubai.

The two developers havejoined hands to build a vastresidential project and iconictwin towers in the historicDubai Creek.

Emaar and Dubai Holding

have launched Dubai CreekResidences that brings thecharm of embracing life atthe source of the citys his-tory and heritage.

The luxury residential de-velopment is part of a six-tower cluster within theisland district of Dubai CreekHarbour at The Lagoons, anambitious city of the future,located as part of the Mo-hammed Bin Rashid City.

Dubai Creek Residencesoffers the serenity of water-front living along the historicDubai Creek and thepanoramic views of the citysglistening skyline, where theBurj Khalifa, another ofEmaars iconic projects,stands out.

The move gives EmaarProperties whose domestic

land bank has nearly beenexhausted, a chance to helpre-build parts of Dubai city by partnering master devel-opers such as Dubai Proper-ties, Dubai Holding andMeraas who have largerun-developed land bank.

Emaar Properties, devel-oper of the worlds tallesttower Burj Khalifa and DubaiMarina, has a strong pres-ence in international mar-kets, such as Turkey,Morocco, India and Egypt. Itis the most successful devel-oper in the region.

The joint move by Emaarand Dubai Holding will bringback life to the once stalledLagoons project, which wasseverely affected by theglobal financial crisis of2008-09.

A marvel byDubai CreekDirectly set by the tranquilwaters of the Dubai Creek,the 40-storey Dubai CreekResidences offers superbly-crafted, luxury apartments onthe waterfront.

Drawing design inspirationfrom its surroundings, thehomes bring a new aestheticdimension and feature pre-mium finishes and superiorlifestyle amenities. Thislifestyle development is an-chored by a bespoke luxuryhospitality offering and ayacht club.

Presenting the master planof Dubai Creek Harbour atThe Lagoons, Mohamed Al-abbar, Chairman of Emaar

Instead of competingagainst each other,Dubais two majordevelopers EmaarProperties and DubaiHolding have joinedhands to revive theonce stalled Lagoonsproject that will go along way in re-developing Dubai inthe years to come.Gulf Property takes acloser look into it...

By Indrajit SenSenior Reporter

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ural flora and fauna. A master-planned city for

tomorrows families, withstate-of-the-art technology,integrated transportation sys-tems, environmentally sus-tainable ecosystems andgreen open parks, DubaiCreek Harbour is spreadover a land area of 6 millionsquare metres.

With a dedicated retailprecinct and pedestrianwalkways, the fully inte-grated community brings anew aspirational lifestyle. Itwill also feature The DubaiTwin Towers, an iconicmixed-use developmentbilled to be the tallest twin

towers in the world; a struc-ture that will also add to thecitys globally renowned sky-line.

The Twin Towers replacesthe four dancing towers de-signed earlier under the title,Dubai Towers.

At about 900 to over 2,150square feet, the one, two andthree-bedroom residencesare spaciously laid out withthe orientation and architec-tural features carefullyplanned to maximise naturallight and fantastic views.Residents will have the un-matched experience ofwatching the citys skylineevolve through the day first

glowing in the morning sunand gorgeously lit up atnight.

With the Dubai CreekResidences, the first projectin the mega Dubai CreekHarbour at The Lagoons de-velopment, we are bringing alifestyle choice that is un-precedented in the city,Ahmad Bin Byat, Chief Exec-utive Officer of Dubai Holdingsaid.

Dubai Creek Harbour atThe Lagoons will also fea-ture cultural amenities, edu-cational facilities, healthcarecentres and a wide range ofleisure choices. All the keycomponents of this world-class development are de-signed as inter-connecteddistricts, around waterfrontsand green boulevards. Thesweeping waterfront of theproject lined by retail, com-mercial and residential zoneswill be built around variousparks.

It is worth noting that devel-opers in Dubai are concen-trating mostly on developingproperties in upcoming andelite locations like Meydaan,Business Bay, Marina, GolfCity, etc. In such a scenariohow successful can a projectlike Dubai Creek Resi-dences, being built in the oldand historic part of Dubai,be? Will it be profitable forthe developers Emaar andDubai Holding?

Dubai is a very young cityin itself, so saying that theDubai Creek Residences isbeing built on the old and his-toric part of Dubai may notbe the best way to describelocation of this project. What

Properties, said, The DubaiCreek is the cradle of ourheritage and the lifeline thatsteered Dubais growth.Dubai Creek Residencestakes residents to the verysource of Dubais history andprovides them a modern, lux-urious, living environment.

Only minutes away fromthe Ras Al Khor Bird Sanctu-ary, a thriving mangroveecosystem and the abode ofmigratory birds and flamin-goes, Dubai Creek Harbourpresents a marina and har-bour lifestyle like none otherin the heart of the city, with afocus on conserving natureand also building on the nat-

Mohamed Alabbar,Chairman of EmaarProperties, and Ahmed BinByat, CEO of DubaiHolding, announces theirpartnership in Dubai CreekHarbour project

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26 Gulf Property

Dubai, why are they joininghands with a government-owned entity like Dubai Hold-ing for developing a project,one wonders. Analysts say,the partnerships forged bymega developers should notbe seen in the negativesense, but rather as a sign ofthe Dubai markets maturity.

Dubai Creek Harbour isone of a number of projectsthat are being undertakenjointly between differentmaster developers (with Mo-hammed Bin Rashid Citybeing another good exam-ple). It is a positive sign of amore mature market thatmajor developers are nowworking more closely to-gether rather than in compe-tition with each other, CraigPlumb, Head of Research, ofglobal real estate advisoryfirm Jones Lang LaSallesMENA division said.

This competition and thelack of transparent informa-tion on what other partieswere developing was one ofthe reasons for oversupply ofprojects in the previouscycle, he said in referenceto the recession of 2008.

Emaar and Dubai Holdingsare two of the largest real es-tate companies in Dubai andthey joining hands to developprojects together is quite log-

ical, given the synergies ajoint venture between thesetwo creates.

Sawhney says, DubaiHolding brings to the tablesome of the most prime landbank in Dubai whereasEmaar brings to the table itsunparalleled real estate de-velopment execution andsales track record. There isnot a shortage of land bankin Dubai as such, but primeland bank like the one wherethis project is being devel-oped is slowly becoming ascarce commodity in Dubai.Raising finance for a megaproject like this is a challeng-ing task, but a joint venturebetween these real estateconglomerates makes itmore bankable.

Experts also believe bothpartners have much to gainfrom this partnership. Thevision of His HighnessSheikh Mohammed BinRashid Al Maktoum to seeDubai achieving its full po-tential of real estate develop-ment had earlier also led tothese two mega real estateconglomerates mulling amerger in 2009 (on lines verysimilar to Aldar and SorouhMerger in Abu Dhabi whichgot completed in 2013). Al-though a merger betweenthese two entities could not

Byat said while talking to themedia about the project.

Most importantly he said,It (the project) also marksthe spirit of partnership thatDubai fosters whereby DubaiHolding and Emaar Proper-ties are sharing their syner-gies and building on theircore competencies to createanother iconic project thatwill be the pride of the city.

The original Lagoons proj-ect was initially announcedby Dubai Holding in 2006,and was to have seven is-lands, interlinked withbridges, that would houseresidential units, shoppingcentres, office buildings, andmarinas. The developmentwas one of several projectsthat were shelved followingthe global financial crisis thatstruck Dubai in 2008.

But Khalid Al Malik, thegroup chief executive ofDubai Properties Group, amember of the Dubai Hold-ing group, back in 2011 saidthat the project was stillunder development and hadnot been scrapped.

Emaar is probably theUAEs most successful realestate developer and isgrowing with multiple proj-ects abroad as well. But afterindependently developing somany iconic projects in

is more important to considerin a real estate developmentis the location of a projectwithin the overall landscapeof the city as well as the sur-roundings and natural attrac-tions it offers, MayankSawhney, Director of Trans-action Advisory Services atErnst & Young MENA, toldGulf Property, when asked tocomment on the viability ofthe project.

If you look at this projectfrom these angles, it certainlyis going to be of the mostprime projects in Dubai. Thesuccess of Dubai FestivalCity, which is located verymuch in a very similar loca-tion is enough evidence thatthere is enough demand fora high quality real estateproject in this location aswell.

This location may appealto a different set ofinvestor/end user base thanwhat a Business Bay, Ma-rina, Golf City etc locationsattract. Therefore, strategi-cally it appears to be a rightmove by Emaar and DubaiHoldings for choosing this asthe location for their flagshipJV project, as it gives theproject a differentiation edgefrom the whole crowd of proj-ects being announced byother developers in the loca-tions such as Meydaan,Business Bay, Marina, GolfCity etc and that in my viewis going to be the USP forselling the inventory in thisproject.

Two giantsDubai Creek Harbour byThe Lagoons is a historic de-velopment that aligns withthe future goals of our city,led by the visionary leader-ship of His Highness SheikhMohammed bin Rashid AlMaktoum, Vice Presidentand Prime Minister of theUAE and Ruler of Dubai,

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also demonstrates anotherkey feature of the marketsprogress. Developers whocould not continue buildingtheir projects they began inthe pre-recession area, dueto the cash crunch in 2008,are steadily taking up thetask of completing and deliv-ering the same, rather thanabandoning them for good.

Plumb commends thetrend saying it will prove prof-itable for the developersthemselves. Dubai CreekHarbour illustrates anotherfeature of the current devel-opment cycle, with many ofthese projects being startedin the previous cycle. Withmuch of the initial infrastruc-ture and site servicing workhaving already been under-taken, this should reduce fu-ture infrastructure spendingand allow the project to bedelivered more quickly thanbrand new projects on fresh

sites, he maintains.Another reason for the

trend towards restarting proj-ects that have already com-menced is the shortage ofsuitable new developmentsites. This is also in accor-dance with the Strategic Planfor Dubai, which seeks to de-velop sites closer to the ex-isting built up area, beforereleasing land in new areas.This will make for a morecompact urban form and re-duce the infrastructure andservicing costs. It also sup-ports the Strategic Plans ob-jective of protecting andpreserving areas of naturaldesert habitat from future de-velopment pressures, hesays.

Mohammed Ali Alabbaragrees, saying, The projectis a true tribute to the visionof His Highness Sheikh Mo-hammed bin Rashid Al Mak-toum to create a dynamic cityof the future that integratessmart networks, while build-ing on the cultural heritage ofour city. g

stability to the market as itwill allow projects to bephased and released over alonger timeframe and in amore orderly manner in linewith market demand, Plumbbelieves.

So can we expect the twopartners to build more suchprojects together in future?Why not, Sawhney believes.Yes, we certainly should ex-pect these two companiesjointly developing more suchprojects in future, but do notsee they announcing moreprojects in very short term.They would want the marketto absorb the inventory of theprojects already launched,before announcing any newprojects, he says.

Held projectsbouncing backThe restarting of the project

take place at that time, butthe two companies havingjoined hands to develop proj-ects together is a win-win forboth of them.

Therefore, both Emaarand Dubai Holdings wouldbenefit from this partnership.Dubai Holding will be able toutilise maximum potential ofthe prime land bank that itpossesses from the execu-tion and sales capabilities ofEmaar; whereas Emaar willbenefit by getting access tosome of the most prime landbank parcels in Dubai,Sawhney says.

So how will the propertymarket in Dubai benefit fromthis partnership between thetwo realtors? Combining theresources and expertise ofthe major developers shouldimprove the quality of deliv-ery and reduce the role ofsmaller third party develop-ers. This should be greater

Dubai Creek Harbour project

Dubai Holding brings to the table some of the most prime landbank in Dubai whereas Emaar brings its unparalleled real estatedevelopment execution and sales track record. Raising finance fora mega project like this is a challenging task, but a joint venturebetween these real estate conglomerates makes it morebankable.

Mayank Sawhney, Ernst & Young MENA

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28 Gulf Property

Emaar sells Dh10.5bnprojects in 9 monthsEmaar sells Dh10.5bnprojects in 9 monthsGlobal real estate de-veloper EmaarProperties reporteda 37 per centgrowth in net oper-ating profit to Dh2.48 billion($678 million) in first 9months of 2014 compared toDh1.81 billion ($493 million)net operating profit for thefirst nine months of 2013,driven by robust financialfundamentals, surging in-vestor confidence andDubais strong economicgrowth, a recent companystatement said.Revenue for the first nine

months of 2014 declined 7per cent to Dh7.03 billion

($1.91 billion), compared toDh7.56 billion. Revenue forthe third quarter of 2014 de-clined 16 per cent to Dh1.97billion ($538 million fromDh2.34 billion recorded in thethird quarter of 2013 while itsthird quarter net operatingprofit rose 30 per cent toDh758 million ($206 million)up from Dh581 million ($158million).Successful listing of

Emaar Malls on DFM under-lined by robust growth ofmalls business with 9-monthrevenue of Dh1.89 billion($517 million), the companysaid.Hospitality revenues forthe first nine months of 2014

reached Dh1.19 billion ($326million). Emaar recently an-nounced total dividend ofDh17.12 billion ($4.66 billion)during 2014 which is 250 percent of the par value ofshares.

Property salesEmaars core competency ofcreating premium real estateassets generated significantsales growth in the first ninemonths of 2014. The total sales value of

Emaars projects in Dubaiwas Dh10.5 billion ($2.9 bil-lion), 15 per cent higher thanthe nine-month 2013 prop-

erty sales of Dh9.1 billion($2.5 billion). In addition to project

launches such as BLVDHeights and Opera Grand inDowntown Dubai, Emaarsflagship mega-development,Emaar is unveiling new jointventure developments in-cluding the 6 million squaremetre waterfront projectDubai Creek Harbour at TheLagoons with Dubai Holdingin Mohammed bin RashidCity (MBR City), and the 11million square metres (2,700acres), Dubai Hills Estatewith Meraas Holding. The company has recently

joined hands with Dubai

Dh2.48 billionnet operating profit recordedby Emaar Properties in thefirst 9 months of 2014

Dh7.03 billiontotal revenues generated byEmaar during the first 9

months of 2014

Dh17 billiondividends paid by Emaar toits shareholders in the first 9

months of 2014

Dh172 billionworth of orders for shareswere placed by investors in

the Emaar Malls IPO

At A Glance

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of iconic projects and to in-crease our recurring and in-ternational revenues andprofits.

RecurringRevenues The recurring revenue busi-nesses (Malls, Hospitalityand Retail) accounted forDh3.80 billion ($1.03 billion),which is 54 per cent ofEmaars total revenue duringthe first nine months of 2014. The recurring revenue

businesses have recordedsteady growth in their shareof total revenue accountingfor 49 per cent in full-year(FY) 2012, 46 per cent inFY2013 and 54 per cent for

9 months of 2014.Highlighting the successful

listing of the companysshopping malls and retailsubsidiary on the Dubai Fi-nancial Market through anIPO that recorded total or-ders of over Dh172 billion($46.8 billion), Emaar Mallsrecorded a total revenue ofDh1.89 billion ($517 million)during the first nine monthsof 2014. At 27 per cent of Emaars

total revenue, this is 15 percent higher than the nine-month 2013 shopping mallsrevenue of Dh1.64 billion($448 million). The growth in malls busi-

ness was underlined by itsflagship asset, The DubaiMall, which welcomed over

58 million visitors, 5 per centhigher than the 55 millionrecorded in the first ninemonths of 2013.

HospitalityEmaars hospitality andleisure business recorded anine-month revenue ofDh1.19 billion ($326 million),17 per cent of total revenue,by drawing on the upbeatperformance of Dubaistourism sector. This is 13 per cent higher

than the nine-month 2013hospitality and leisure rev-enue of Dh1.05 billion ($288million). The Address Hotels+ Resorts, Emaars flagshiphotel brand, recorded an av-erage occupancy of 84 percent through the same pe-riod, an industry-best.

InternationaloperationsThe companys internationaloperations also reportedpositive growth through thefirst nine months of the yearcontributing a revenue ofDh1.33 billion ($363 million),73 per cent higher than thenine-month 2013 interna-tional revenue of Dh770 mil-lion ($210 million). The companys interna-

tional operations now ac-count for 19 per cent of thetotal revenue.With over 214 million

square metres of land bankinternationally, Emaars imgrowth overseas was high-lighted by sales of over Dh3.08 billion ($840 million)from Egypt during the firstnine months of 2014, an 140per cent increase over thesame period last year.Emaars operations inTurkey, Saudi Arabia,Lebanon, Morocco, USA andPakistan also recorded im-pressive growth. g

Holding to redevelop part ofthe Lagoons in a landmarkannouncement that will cre-ate the right synergies inDubai.

Strong valuecreation Mohamed Alabbar, Chair-man of Emaar Properties,said: This has been a recordnine-month performance forEmaar as we delivered onour promise of strengtheningshareholder value. We have set an industry

milestone by announcing atotal dividend of Dh17.12 bil-lion this year through ourstrategic growth initiatives in-cluding the distributions ap-proved by the shareholdersat the beginning of this yearand the dividends proposedfor distribution before the endof this year. The successful listing of

our malls business is testa-ment to our vision to developstand-alone profit centres ofour diverse businesses inDubai and international mar-kets, creating long-termvalue for our stakeholders.The prime driver in our

growth is the positive per-formance of the Dubai econ-omy, which continues toinspire international investorconfidence. Our strategy forthe future is to further consol-idate Emaars position asone of the largest developers

Emaar Properties

Emaar PropertiesPJSC, listed on theDubai Financial Mar-ket, is a global prop-erty developer andprovider of premiumlifestyles, with a significantpresence in the Middle East,North Africa and Asia. One of the worlds largest

real estate companies,Emaar has total assets ofover US$19 billion and aland bank of more than 214million square metres in keyinternational markets. With a proven track-record

in delivery, Emaar hashanded over 38,000 resi-dential units in Dubai andother global markets since2001. Emaar has over690,000 sq m of recurringrevenue generating assets,

and 12 hotels and resorts,with over 1,900 rooms.Today, over 70 per cent ofthe companys revenuescome from its recurring rev-enue businesses and inter-national operations. Burj Khalifa, the world's

tallest building, and TheDubai Mall, the worldslargest shopping and enter-tainment destination, areamong Emaars trophy de-velopments. g

We have set an industry milestone byannouncing a total dividend of Dh17.12billion this year through our strategicgrowth initiatives including thedistributions approved by theshareholders at the beginning of this year and the dividendsproposed for distribution beforethe end of this year...

Mohammed Alabbar, Chairman, Emaar Properties

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32 Gulf Property

Azizi fast-tracks Dh1.4bnworth of housing unitsAzizi fast-tracks Dh1.4bnworth of housing unitsAzizi Developments, aDubai-based devel-oper of Afghan ori-gin, is set to deliverfive residential tow-ers with more than 1,000units with a developmentvalue exceeding Dh700 mil-lion, a top official told GulfProperty in an exclusive in-terview. Each building has a salevalue of Dh125 million at cur-rent market value and all arescheduled to be delivered bythe end of 2015, EngineerMohsen Kamel, Chief Exec-utive Officer of Azizi Invest-ments, the parentorganisation of Azizi Devel-

opments. We have anotherfive towers currently underdevelopment and construc-tion taking the developmentvalue of the ten towers toDh1.4 billion. When com-pleted, these ten towers willhost more than 1,200 resi-dential apartments.These are part of ourDh3.5 billion property portfo-lio currently under variousphases of planning and de-velopment.Eight of the ten towers arebeing constructed by SSLootah Construction whiletwo projects are being builtby Modern Construction Co.The company has pur-

chased another 12 plots oflands at Al Furjan master-planned community where itis developing 12 buildingseach rising 12 floors.We have substantiallystrong land bank and we aredeveloping the projects withour own resources, he said.He said, the sales cam-paign has been going strong.We have already soldabout 40 per cent or 200units, since their launch afew months ago.Azizi Investments, estab-lished by an Afghan busi-nessman, Dr Mirwais Azizi, isa well diversified conglomer-ate that operates in a num-

ber of verticals includingtrading, retail, energy andmining, real estate and con-struction as well as bankingand finance. The group ownstwo banks including AziziBank the largest lender inAfghanistan while it repre-sents Nissan and Infinitybrands in Afghanistan.We have a strong pres-ence in the Afghan real es-tate market, where we havedelivered 800 apartments,Kamel says. We have justopened the biggest shoppingmall in Kabul which hosts2,200 outlets. We have alsodelivered two other malls,taking the total number of

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serviced apartment com-plexes.The company that employs5,000 people in Afghanistanand the UAE, has an annualturnover of Dh9.1 billion(US$2.5 billion).Meanwhile, Azizi Develop-ments announced yet an-other luxury living project,Azizi Aster Residence thatoffers European standard 1,2 and 3 bedrooms apart-ments, with fully modern andluxury furniture for a stylishliving.The development will be lo-cated in Dubais new upcom-ing residential destination, AlFurjan. Demand for stylishly

designed apartments in AlFurjan continues to bestrong, led by its appeal as amost popular upcoming des-tination. Homes in Al Furjanwill appeal to investors as itprovides them a sought-afteraddress in the heart of theemirate, he said.Detailing the outline of themaster project, company of-ficials revealed that this willspan 4045.86 million squaremetres in total making it thedeveloper's largest project inthe emirate. With construc-tion scheduled to beginwithin this month, Azizi aimsto complete the developmentduring the first half of 2017.The developments floorplans range from 864 squarefeet to 1802 feet and will con-sists of 1,2, or 3 bedroomsrespectively with a combina-tion of furnished apartmentsincluding modern kitchen fit-tings, and high ceiling lobbywith extravagant finishing.The apartments will alsocomprise of balcony/terracealong with private parkingbay. The Podium level willhave a swimming pool alongwith kids pool area, fitnessclub, a sauna and steam fa-cilities among other ameni-

ties. A total of 128 units willbe on offer for sale. Thebreakdown is as follows, 29units comprise one bedroom,79 units will have two bed-rooms and 20 units of threebedroom apartments.Dubais property markethas been booming and de-velopers have been launch-ing new projects on a regularbasis in the emirate to keeppace with rising demand.Azizi Developments alonehas so far launched a 7 resi-dential properties. The company recently re-vealed its plans to earmarkup to a million square feet ofland to develop quality resi-dential properties in the com-ing years.Azizis decision to developresidential offerings follows acall by Dubai's leadership forgreater investment in devel-oping realty solutions toserve the ever-increasingtourist footfall to the emirate.Azizi developments is fo-cusing towards a long termbusiness approach in all itsproperty projects as the realestate demand is on the up-surge, following Dubais an-nouncement of hosting theWorld Expo 2020. g

outlets to 2,800.Azizi Mall that has a grossfloor area of 100,000 squaremetres, is the largest civilianstructure ever made inAfghanistan. Kabuls tallestbuilding that rises to 21floors, has also been built byAzizi Investments.In Dubai we are also de-veloping a five-star hotel atthe Phase II of Dubai Health-care City that will have 440keys. We are talking to anumber of hotel operators tomanage the project, Kamelsays. Besides, we own twoplots at the Palm JumeirahCrescent where we are plan-ning to develop two luxury

Dh1.4 billionworth of projects are

currently under construction

Dh3.5 billionvalue of Azizi Developments

portfolio in the UAE

Dh700 millionworth of residentialapartments are to be

delivered by the end of 2015

5,000people work for the Group inAfghanistan and the UAE

At A GlanceEngineer Mohsen Kamel, ChiefExecutive Officer, isspearheading the developmentprojects of Azizi Investments

We have another fivetowers currently underdevelopment andconstruction taking thedevelopment value ofthe ten towers to Dh1.4billion. Whencompleted, these tentowers will host morethan 1,200 residentialapartments...

Mohsen Kamel

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34 Gulf Property

MAG unveils Dh11bnworth of projectsMAG unveils Dh11bnworth of projects

One of MAG Groups newproject being marketed

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addition to its four projectsdelivered so far with 1,300units.

The projects will undergodesigning stage during thefirst quarter while deliveriesare scheduled in three to fouryears, Mohammed Nimer,MAG Group Chief ExecutiveOfficer, told Gulf Property.

We have so far delivered1,300 units in four projectswith a combined value ofDh3 billion.

MAG is a diversified busi-ness conglomerate ownedby Arab expatriate business-man Moafaq Al Gaddah, whomade a fortune from autospare parts and accessories

trade in Dubai and Sharjah.Despite the global financial

crisis that affected Dubaisreal estate market in 2008-10 and exposed many devel-opers who had to foldbusinesses and disappearfrom the market with piles ofdebt, MAG Group had con-tinued to deliver its projectsamid challenging economicenvironment.

Obviously, we had to slowdown like the rest of the de-velopers till the dust settledand then delivered our prom-ises to the customers, Nimerexplains. However, now thatthe market is back, we havealso launched these projects

to meet the growing demandfor quality housing.

MAG Group has alreadyprojects under implementa-tion worth Dh5 billion, includ-ing the Dh2 billionmulti-phase project, locatedin the Meydan district, com-prising 106 townhouses anda residential communityspread across 29 five-storeyapartment buildings, aDh750 million residentialproject in Sharjah, the Dh700million Art Centre in Barsha,the Dh865 million City of Ara-bia residential project, aDh500 million MAG residen-tial tower in the Burj Khalifaarea, the Dh100 million MAG

Dubai-based real es-tate developer MAGProperty Develop-ment, part of theMoafaq Al Gaddah(MAG) Group, has rolled outsix projects worth Dh11 bil-lion (US$3 billion), part of itsDh15 billion planned devel-opments announced earlierthis year, a top official toldGulf Property recently.

Once completed, the sixprojects would deliver 2,300units mostly residential in

Mohammed Nimer, ChiefExecutive Officer of MoaffaqAl Gaddah (MAG) Group

Gulf Property Exclusive

We have so fardelivered 1,300 unitsin four projects with acombined value ofDh3 billion...

Mohammed Nimer,CEO, MAG Group

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earlier reported an annualturnover of more than Dh800 million, and a marketpresence in more than 90countries and a forecast forfurther expansion in 2014.MAG Royal Solutions alsocreated a Guinness WorldRecord in 2013 for thelargest automated parkingfacility in the world, at a costof Dh80 million and situatedin Emirates Financial Tow-ers, DIFC.

Coming back to the current

market situation, MohammedNimer said, the supply in themarket would be higher thanthe demand till the middle ofthe next year. Later, we ex-pect the demand to pick up thats when our projects willalso take off to meet the de-mand, he explains of thetiming of the launch of theseprojects.

The first two of MAG Prop-erty Developments new proj-ects are being designed byChicago-based Skidmore,

Owings and Merrill LLP(SOM) - one of the worldslargest and most influentialarchitecture and interior de-sign consultancies that hascompleted more than 10,000projects in over 50-pluscountries.

SOM designed and super-vised some of the worldstallest towers including BurjKhalifa in Dubai, Sears (NowWillis) Tower in Chicago.

SOM will be lending itsrenowned expertise to the

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36 Gulf Property

MAG 210 getting ready atDubai Marina one of manyproperties being developedby MAG Group

Dh11 billionworth of new projects havebeen announced by MAG

Dh3 billionvalue of the properties

delivered by MAG Group

1,300units have been delivered by

MAG Group so far

2,300new residential units arebeing developed by MAG

Group in six projects

At A Glance

Logistics plant in Jebel Aliand the Dh180 million MAG226 residential tower inJumeirah Village.

In a statement, Moafaq AlGaddah, Chairman of MAGGroup said earlier, We arestudying to buy land for addi-tional projects which couldbe worth up to Dh10 billion inDubailand, Jebel Ali and AbuDhabi, which will be an-nounced in the comingmonths."

MAG Groups trading arm

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encede x p l o -sive growthcausing a spill ofpeople into its territory.

Located about 25 minutesnorth of Dallas, Frisco hasbecome a comfortable homefor professionals who work inthe Dallas-Fort Worth Metro-plex. The Gate is conve-niently located adjacent toother Frisco neighbourhoodsand is expected to be bigdrawer for sports fans, withthe new training grounds ofthe Dallas Cowboys nearby.

The final two projects ofthis year are MAG 230 andMAG 226. MAG 230 is aprestigious residential land-mark in the City of Arabiaand home to the much talkedabout Mall of Arabia. The de-velopments distinctive L-shape main structure housesunique features and offers

high-c l a s s

l i v i n gs t a n d a r d s .

The sixth project,MAG 226, is a prestigiousresidential property standingtall as a landmark inJumeirah Village Circle andmeticulously designed inboth its internal and externalarchitecture to reflect the re-quirements of luxury living.

Nimer said, the recent softlanding of the freehold sale isgood for the industry. It re-flects that the market hasmatured and investors aremaking sensible choices, hesaid. Buyers are looking atfinished projects developedby credible developers whomthey can trust.

MAG Groups most re-cently completed project in-cludes Polo Residence,which is located in the heartof Meydan City. The gated

community of 29 four-storeybuildings blends the bucolicwith the urban, siting modernbuildings among trees and1,160,000 square feet ofmeadows.

MAG Property Develop-ments renowned completedprojects include Emirates Fi-nancial Towers (EFT), a 27-storey commercial twin towerdevelopment located in theheart of the Dubai Interna-tional Financial Centre.

EFT has made its mark onthe Dubai landscape with itscontemporary elliptical pro-file, glass facade and sky-bridge. The two towers alsoboast the worlds largest au-tomated parking facility, asverified by the GuinnessBook of Records, which wasdeveloped by MAG RoyalSolutions, another division ofMAG Group.

MAG Property Develop-ment is the real estate devel-opment arm of Moafaq AlGaddah Group, one of theregions largest corporateentities. The group encom-passes more than 50 compa-nies with activities spanningnumerous sectors, includingcommercial, real estate,service, industrial and phar-maceutical.

The company focuses onprojects that deliver long-term benefits to investorsand customers and has acurrent real estate projectportfolio in excess of Dh11billion ($3 billion). g

development of two proper-ties, MAG 1978 and MAGLuxury. MAG 1978, locatedin Business Bay will beMAGs Headquarters and willinclude 218 holiday homeapartments while MAG Lux-ury situated in Burj KhalifaDistrict will comprise of 62apartments and lavish facili-ties.

Paying attention to the cul-tural and traditional wealth ofthe emirates, MAG PropertyDevelopments third projectto be launched this year isthe Estate at Al Furjan. Sitedin close proximity to Jebel AliPort, Al Maktoum Airport,Knowledge Village, and In-ternet/Media City, The Estatefuses elegant, enduring de-signs that are contemporarybut pay homage to Dubaisrich heritage.

Talal Al Gaddah, CEO ofMAG Property Development,said, MAG Property Devel-opment is spearheadingMAG Groups ambition to beat the forefront of the regionsreal estate industry. It isachieving this through itscommitment to the groupscorporate philosophy of inno-vation and continuous im-provement.

Another MAG Group proj-ect sees its successful ex-pansion into the U.S. marketwith The Gate located inFrisco, Texas. With a total in-vestment of $750 million,The Gate features 17 build-ings and seven villas spreadacross a vast area.

Its four and five-story resi-dential building are suited tothe urban living requirementsof professionals and youngfamilies, with its 10-storeybuildings offering more luxu-rious apartments. At streetlevel, there are numerouspossibilities for shopping andleisure, with many shops andrestaurants on the groundfloor. Frisco is one of thefastest growing U.S. citieswhose fame began in thelate 1990s, when the north-ern suburbs of Dallas experi-

The recent soft landing is good for the industry.It reflects that the market has matured andinvestors are making sensible choices. Buyersare looking at finished projects developed bycredible developers whom they can trust...

Mohammed Nimer

Dh15 bnDh15 bnworth of projects are beingdeveloped by MAG Group

worth of projects are beingdeveloped by MAG Group

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IGO makes ambitiousforay into US marketInvest Group Overseas(IGO) has done whatfew real estate compa-nies from the region, letalone the UAE, hasdone. IGO, a subsidiary ofthe Moafaq Al Gaddah(MAG) Group, has investedin a grand mix-used project inthe American city of Frisco inTexas state.

With a total investment ofUS$750 million (Dh2.75 bil-lion), The Gate features 17buildings and seven villasspread across a vast area of40.95 acres. Like multiple

other developers, IGO toomade it a point that theirunique project gets the atten-tion of investors at CityscapeGlobal, Dubai held in Sep-tember this year.

Headquartered in Dubai,IGO was formed in 2004through a joint undertaking ofcurrent chairman of MAGGroup, Moafaq Al Gaddahand Dr. Mohammed AnasKozbari an experiencedand successful entrepreneur.With this determined ventureinto the US market, IGO hasproved that it is growing by

leaps and bounds and in factshowing the way to otherMiddle Eastern developers.However, one wonders whyof all the places in the world,IGO had to cross the seas tobuild a project in the US.

The market in the Stateshas evolved heavily, Kozbarisays. You remember the re-cession that the US marketwent through in 2008. Wellthe market now is muchstronger, he reiterates.

Okay understood. Buteven if they did take the bolddecision to camp in the US,

By Indrajit SenSenior Reporter IGO makes ambitious

foray into US market

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why did they not invest in theglobal metropolises like NewYork City or Los Angeles?

When it comes to thestate of Texas, you can saythat at the state as well asthe local level, they wereable to avoid the hardshipsof the recession and thatpaid off. Now you see, theeconomy of the state ofTexas has been able to bringin a lot of different companiesfrom all over the US to head-quarter and conduct busi-nesses, Kozbari states.

How The Gatewill help FriscoThe Gate is a master-planned, mix-used develop-ment, located in theDallas-Fort Worth metropoli-tan area that will cap thebooming economic develop-

Maher Maso, Mayor ofFrisco, Texas, USA,speaking to Gulf Property

Dr. Anas Kozbari,Managing Partner &CEO ofInvest Group Overseas

ment in Frisco. True to itsname, The Gate is con-ceived to be a gateway, asocio-economic catalyst forthe 6.3 million and growingpopulation of the metro area,with a refreshing live, workand enjoy environment.

When completed, the proj-ect will host 1.21 millionsquare feet of prime resi-dences; 854,000 square feetoffice spaces; 54,000 squarefeet of retail spaces; 47,500square feet of cafes andrestaurants and a boutiquehotel. The Gate sits at astrategic spot straddlingJohn Hickman Road and theDallas North Tollway, the30.2 miles toll road that con-nects Frisco to downtownDallas.

In Frisco we have a vi-sion, said Mayor of FriscoMaher Maso, who had trav-elled all the way from the USto Dubai, to attend thelaunch of the project atCityscape Global.

In the next 20-25 yearswe will be double the size ofwhat we are. Texas is busi-ness-friendly, without toomany government regula-tions. There are opportuni-ties for companies that aregood at what they do. Frisco

today is the second fastestgrowing city in the US.

IGO has gone about de-veloping this project all by it-self, without a partner;although Kozbari says theyhad been approached bymany a firm who wanted tobe part of this unique projectin the US. However, Kozbarisays that investing in such agrand project in the US, willnot divert them away fromthe Dubai market, which istheir base.

Dubai is something weemphasise on very much.There are a lot of invest-ments here in Dubai, he as-serts.

And The Gate is just oneof the projects we are devel-oping outside the UAE.

Whats so greatabout Frisco &The Gate?Frisco may be unheard of,unknown to most other non-Americans. But with thegrowth of the citys popula-tion, the economy is alsostrengthening with new busi-nesses camping there. Thecity continues to grow along

with the state of Texas whichhosts 52 of the 500 Fortune500 companies. Even thestates taxation structure isconsidered the best in theUS and its public educationsystem regarded as one ofthe best in the nation.

Frisco, besides develop-ing on the financial front isalso a hub of sports in theDallas-Fort Worth metropoli-tan area. For instance,famed American footballteam the Dallas Cowboys ismoving its world headquar-ters to Frisco. The city is alsohome to many other football,hockey, baseball and gym-nastics teams; and due tothe heavy youth populacethe city enjoys every kind ofsport played in America.

What is notable is the factthat the city offers a globalfeel as it hosts sizeable In-dian and Middle Easte

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Gulf Property November 14