Since the announcement of Expo 2020, there has been an increase of residential and commercial development at the site. New shopping centres, hotels and over 400 restaurants as well as luxury housing and cycling paths, will be completed prior to the highly anticipated event.
According to a recent Ernst & Young report, titled ‘The economic impact of Expo 2020 Dubai’, the event is estimated to bring in Dhs122bn to the overall UAE economy. While that will largely be made up of the tourism, hospitality and F&B industries, there has been a noticeable uptick in demand for rented apartments as a projected increase of visitors are expected to gather in Dubai. It is the perfect opportunity for landowners and investors who are on the lookout for a strong market for their properties.
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Despite the recent challenges posed by the Covid-19 pandemic the ‘UAE & MENA Real Estate Report’, which was produced by Informa Markets in 2021 found that 74 per cent of respondents are anticipating a recovery for the MENA region’s real estate industry within one to two years since 2020. A key proponent of this growth is regional mega-events such as Expo 2020.
Developers need to understand the changing demands of potential investors and organisations especially with Expo 2020 ready to open its doors to potentially hundreds of new businesses. Offering value for money for either larger units or high-end facilities, which will be key to attracting buyers. Commercial real estate developers will need to offer flexible areas for investors to create the perfect space for their business as opposed to pre-structured floorspace.
We are already seeing the implementation of these changes firsthand. Developers are focusing on adding high-end facilities such as gyms to established living spaces. Environmentally friendly buildings are also in the making. In addition, developers have been eager to start constructing new apartments and villas. The interest rates have been lower than usual, just like the property prices and mortgage rates, making them extremely attractive to those looking to buy in the market.
With a surge of new visitors to the emirate for Expo 2020, we expect that there will be a surge of prospective investors in Dubai’s real estate sector. The likelihood of investing in Dubai has become increasingly more attractive due to several proactive government incentives such as the introduction of new visas; special investor and retirement visas, golden long-term visas, and the reduction of the loan-to-value (LTV) for first time homebuyers to 20 per cent initiated by the UAE Central Bank. These initiatives will provide a significant boost to the industry and, in turn, the economy.
Businesses have already begun to review the way they structure and operate in commercial and private spaces. As these changes continue to impact businesses, we will see developers review their traditional approach to design and react accordingly.
In terms of future trends, Expo 2020 has opened a new focus for investors in areas such as Business Bay, Jumeirah Village Circle, Sports City, Barsha South and areas close to the Expo site. While the property occupancy is still low, the expansion of Maktoum airport has anticipated a dramatic increase in tourism to these areas. With upgraded infrastructure including new metro links, additional commercial and residential spaces – the area is rapidly growing. There has been an influx of tourists who have been working from home, from Dubai and this is expected to steadily increase.
Furthermore, with the addition of the Dubai 2040 Urban Master Plan, which will see large-scale changes to the city’s developed areas, Expo 2020’s legacy will continue to have an impact of the emirate’s real estate sector.
The initiative has outlined and divided the city into key areas for continued urban development, focusing on efficiency, sustainability and mobility. With a clearly outlined road map on the future development of these areas, it really is an exciting time for Dubai’s real estate.
Source- gulfbusiness.com
Dubai: The UAE’s banking sector and the economy are set for a strong rebound in the second half of the current year with sustained growth trends continuing into 2022, Ahmed Abdelaal, Group CEO, Mashreq told Gulf News.
In a wide-ranging interview, the Mashreq Group CEO spoke about the pandemic’s impact on the economy, key sectors and the overall outlook.
“We are still fighting a pandemic. Forecasts are difficult by in these kinds of situations. From what I see, things are improving. We are moving into a stable domain right now. Sentiment is improving, core fundamentals of the economy are also showing healthy signs,” said Abdelaal.
The latest Central Bank of UAE (CBUAE) forecasts of UAE’s GDP growth reinforce Abdelaal’s take on the economy and the banking sector.
The CBUAE has projected the UAE’s GDP growth at 2.1 per cent for this year and is forecast to double to 4.2 per cent in 2022.
“We expect the second half of this year to show a significant improvement over the first half with some main sectors returning to stability. In addition, the data on international investment flows into the country are also very positive,” said Abdelaal.
Veteran banker with digital dreams
Ahmed Abdelaal, Group CEO, Mashreq is a banking professional with over 25 years of experience in progressively senior roles across banking verticals spanning across international and regional banks.
As a veteran banker, he has a clear understanding of the needs of both retail, SME and the corporate client community, and enjoys a proven track record for delivering complex banking solutions. Ahmed holds an MBA from London Business School, University of London.
As a veteran banker, he has a clear understanding of the needs of both retail, SME and the corporate client community, and enjoys a proven track record for delivering complex banking solutions. Ahmed holds an MBA from London Business School, University of London.
Foreign investments
While economic fundamentals are key to investor confidence, Abdelaal said factors such as ease of doing business and access to the market are key in attracting foreign investments.
The efficient management of the pandemic has also come as a big factor in boosting investor confidence in the country. Global investors see this as a sign to stability.
“The UAE, over the past few months has been working hard to open up the access points for the regional global investors. The facilities the country has offered, whether in terms of liberal residencies, 100 per cent ownership and reduced costs in terms of setting up a business clearly have played a key role in attracting investments into the country,” he said.
Expo 2020 a great morale booster to the economy
The hosting of Expo 2020 Dubai at a time when the economy is opening up for business after the pandemic will serve as a huge morale booster for all sectors according to Ahmed Abdelaal, Group CEO, Mashreq.
“There has been a big improvement in the domestic economic sentiment with every aspect of business and social life is returning fast of pre-pandemic normalcy,” he said.
The way the pandemic has been managed is having a positive impact on the real estate sector. The fast and systematic handling of the health crisis is attracting a new set of affluent investors to the real estate sector.
The influx of global demand in the property sector is the biggest vote of confidence in the economy.
“This is a sign that global investors are recognising the stability the UAE can offer. Of course, the changes in the residency rules and various classes of long-term visas too are helping investment flows,” he said.
“There has been a big improvement in the domestic economic sentiment with every aspect of business and social life is returning fast of pre-pandemic normalcy,” he said.
The way the pandemic has been managed is having a positive impact on the real estate sector. The fast and systematic handling of the health crisis is attracting a new set of affluent investors to the real estate sector.
The influx of global demand in the property sector is the biggest vote of confidence in the economy.
“This is a sign that global investors are recognising the stability the UAE can offer. Of course, the changes in the residency rules and various classes of long-term visas too are helping investment flows,” he said.
Banking outlook
In the past 18 months UAE’s banking sector has come a long way from the initial shock of the pandemic with stronger capital and liquidity positions.
“Looking back, clearly banks are in a much better position compared to this time last year. Frist of all, the way that the regulators intervened has helped. Additionally, the banks too have managed this crisis very well,” said Abdelaal.
The way the banking sector faced this crisis compared to the global financial crisis has completely different. Overall, the responsiveness to the crisis has been fast and efficient. Banks had in fact responded quickly with some relief measures to their client even before the regulators announced comprehensive packages.
“As far as Mashreq is concerned, we already had initiated help for our clients even before the Central Bank announced its Targeted Economic Support Scheme (TESS). Of course, the TESS added great deal of depth to the relief programmes throughout the country,” said Abdelaal.
Data shows liquidity and capital structure of the financial sector a whole has remained far stronger compared to 2008 when global financial crisis hit the sector. Although most banks were prepared to withstand the crisis on the standalone basis, the timely central bank support eased pressures on banks and other key sectors.
COVID impact on SMEs
Pandemic hit the UAE’s SME [small and medium enterprises] sector at a time it was struggling from a previous crisis caused by a rupture in payment cycle in the economy resulting from a sharp fall in oil prices and the fiscal tightening.
SMEs represent more than 94 per cent of companies in the UAE, employing about 86 per cent of the country’s private sector workforce, and generates more than 50 per cent of the non-oil GDP.
Despite the initial shock of the pandemic, Abdelaal said the banking sector has remained largely supportive to SMEs.
“I am not a position to talk about the market as a whole. However, Mashreq has been and remains supportive to our SME clients. We have increased our SME portfolio by 140 per cent in 2020, even amid the crisis,” he said.
Mashreq’s NEOBiz a digital banking solution for SMEs came in handy in reaching support to this crucial sector.
“NEOBiz introduced in 2019 has been one of the most successful ventures for us to support this sector. Today, we have more than 10,000 clients who have been on-boarded over the past 18 months,” he said
So far, Mashreq has entered into partnership with 40 free zones. In addition, the bank has partnerships with 25 SME ecosystems that include the likes of Amazon and others to support this segment.
SMEs represent more than 94 per cent of companies in the UAE, employing about 86 per cent of the country’s private sector workforce, and generates more than 50 per cent of the non-oil GDP.
Despite the initial shock of the pandemic, Abdelaal said the banking sector has remained largely supportive to SMEs.
“I am not a position to talk about the market as a whole. However, Mashreq has been and remains supportive to our SME clients. We have increased our SME portfolio by 140 per cent in 2020, even amid the crisis,” he said.
Mashreq’s NEOBiz a digital banking solution for SMEs came in handy in reaching support to this crucial sector.
“NEOBiz introduced in 2019 has been one of the most successful ventures for us to support this sector. Today, we have more than 10,000 clients who have been on-boarded over the past 18 months,” he said
So far, Mashreq has entered into partnership with 40 free zones. In addition, the bank has partnerships with 25 SME ecosystems that include the likes of Amazon and others to support this segment.
Asset quality
The CBUAE has indicated that it will unwind some of the pandemic related support measures going forward. While the withdrawal of direct liquidity support and regulatory forbearance measures are expected to see some spike in non-performing assets, the phased withdrawal of support is expected to allow banks to somewhat spread the provisions over a longer period.
“The central bank has taken a gradual approach to exiting the support programme and this has been done in consultation with the banks who have expressed confidence that they are strong enough to manage their finances and continue to support the economy,” said Abdelaal.
While the banks in general have been prudent in making adequate loan loss provisions in the early days of the pandemic, he said the prospects of full or partial recovery of these provisions will be subject to many factors such as legal modalities, economic conditions, and client’s ability to redeem their exposures.
“These are factors that are very difficult to forecast. But the assumption always is that we try to work with clients to achieve recovery. Whether is it is doable, especially during a crisis of this magnitude, it is very difficult to predict,” he said.
Mashreq CEO says the future is digital. The banking group has reduced its number of branches for 34 to 8.
Branch rationalisation and digitalisation
Mashreq has been one of the first banks in the region to opt for digitalization. Looking back, the bank has come a long way in digital transformation from the brick-and-mortar model to a predominantly digital model.
“Going digital is an existential choice for the banking sector. If we didn’t move in that direction we will be out of the game. Brick-and-mortar model is a thing of the past. Digital is the future,” said Ahmed Abdelaal, Group CEO, Mashreq told Gulf News.
The latest data from the CBUAE validates his stand. The UAE banks are fast embracing digitilisation and are shrinking and or are redefining the branch-based banking services.
Abdelaal sees digital solutions are new norms as the new generation has no tolerance for paper-based documents or wet signatures. In addressing the new customer needs, he said it is imperative to build platforms that speaks their language and the future of banking all about creating experiences rather than creating new products.
“For us it has been a very natural evolution. We have reduced our number of branches for 34 to 8 as we speak, and this process will continue. Direction of our travel is NEO and NEOBiz and everything will eventually come under those two verticals,” he said
Technology adoption and a new era of open banking
Last year, Mashreq was one of the first bank in the UAE to launch the UAE’s first block chain-based onboarding solution targeted at startups and SMEs in association with the DIFC and norbloc, a Know Your Customer (KYC) and client onboarding fintech.
Companies are now able to digitally create a single KYC [know your customer] record (which will be authenticated with electronic ID) to simultaneously share data with their various financial institutions. The block-chain based solution speeds up the time required to acquire a bank account number for newly registered companies and reduce the burdensome and costly requirements of managing KYC data for already registered companies.
More than 80 per cent of Mashreq’s new clients have come through digital channels. With solutions like Neo for consumer banking and personal banking and NEOBiz for business banking. Even when it comes to wholesale banking for the mid and large cap companies, the bank is moving to digital platforms.
“We are moving into open banking platforms where we can hook up our large corporate clients with a complete eco system that integrates with different partners based on API [Application Programming Interface] haring that will make banking experience tailor made to the needs of each individual corporate,” he said.
In addition to creating a new banking experience for corporate clients, the new approach resolves balance sheet limitations when it comes to big ticket funding and or fund raising. By creating an eco-system in collaboration with larger banks, clients are offered a one stop shop for all their needs ranging from wholesale banking including, investment baking, trade finance, global payments and transaction tracking services in collaboration with other global banks.
Going forward, Abdelaal sees blockchain transactions and distributed ledger-based payment solutions as future of trade finance. Although crypto currencies are controversial currently, he expects appropriate regulatory mechanisms to evolve and the technology to become the backbone of trade finance.
“The future is about connecting suppliers to buyers and buyers to end consumers. Building these bridges is going to be core to what financial institutions do in the future,” said Abdelaal.
Companies are now able to digitally create a single KYC [know your customer] record (which will be authenticated with electronic ID) to simultaneously share data with their various financial institutions. The block-chain based solution speeds up the time required to acquire a bank account number for newly registered companies and reduce the burdensome and costly requirements of managing KYC data for already registered companies.
More than 80 per cent of Mashreq’s new clients have come through digital channels. With solutions like Neo for consumer banking and personal banking and NEOBiz for business banking. Even when it comes to wholesale banking for the mid and large cap companies, the bank is moving to digital platforms.
“We are moving into open banking platforms where we can hook up our large corporate clients with a complete eco system that integrates with different partners based on API [Application Programming Interface] haring that will make banking experience tailor made to the needs of each individual corporate,” he said.
In addition to creating a new banking experience for corporate clients, the new approach resolves balance sheet limitations when it comes to big ticket funding and or fund raising. By creating an eco-system in collaboration with larger banks, clients are offered a one stop shop for all their needs ranging from wholesale banking including, investment baking, trade finance, global payments and transaction tracking services in collaboration with other global banks.
Going forward, Abdelaal sees blockchain transactions and distributed ledger-based payment solutions as future of trade finance. Although crypto currencies are controversial currently, he expects appropriate regulatory mechanisms to evolve and the technology to become the backbone of trade finance.
“The future is about connecting suppliers to buyers and buyers to end consumers. Building these bridges is going to be core to what financial institutions do in the future,” said Abdelaal.
Source- gulfnews.com
Dubai recorded 1,592 real estate transactions worth Dh6 billion during the week ending September 30, according to the Dubai Land Department.
Seventy-three plots in Dubai were sold for Dh350.29 million and 1,080 apartments and villas were transacted for Dh2.74bn this week, the DLD weekly report said.
The surge in sale comes as the UAE’s residential property market continues to recover from the impact of the Covid-19 pandemic.
The country’s success in handling the Covid-19 pandemic and its proactive policy measures to jump-start the economy have boosted demand for property, pushing capital values for homes higher.
The UAE’s rapid response to the Covid-19 pandemic has attracted the world’s wealthy investors, who continue to flock to Dubai, snapping up the most expensive homes in locations such as the Palm Jumeirah and Jumeirah Bay, according to global property consultancy Knight Frank. This has played a big part in driving up villa values, the consultancy said in a report.
The top property transactions this week were a land plot in Al Thanayah Fourth that sold for Dh59.5m and a land parcel in Al Qusais First that sold for Dh32.86m, the DLD said.
Al Yufrah 3 recorded the most transactions for this week with 17 sales deals worth Dh15.66m.
This was followed by Nad Al Shiba Third that recorded 10 sales transactions worth Dh28.02m and Al Hebiah Third with nine sales transactions worth Dh18m in third place, the DLD said.
The top three transactions involving apartments and villas in Dubai were an apartment that sold for Dh373m in Marsa Dubai, a villa that sold for Dh264m in Palm Jumeirah and a villa that sold for Dh257m in Wadi Al Safa 5.
The cumulative value of mortgaged properties for the week was Dh2bn, with the highest being a land in Me’Aisem First, which was mortgaged for Dh205m, according to the DLD.
Seventy-one properties worth Dh1bn were granted to first-degree relatives, the agency said.
Villa prices in Dubai have increased 16.5 per cent year-on-year, according to provisional data for the third quarter from Knight Frank. Residential values in Abu Dhabi also climbed two per cent compared to the corresponding period last year, it said.
The number of homes worth more than $10m sold in Dubai currently stands at 54, breaking the previous record of 31, set in 2015, according to Knight Frank.
The Palm Jumeirah and Emirates Hills account for almost 75 per cent of super prime home sales in the city, but new sub-markets in Dubai, such as Business Bay, have also joined the list of locations for homes worth more than $10m, Knight Frank added.
Source- www.thenationalnews.com
Dubai's residential capital values, as of August 2021, saw villa values increase in double digits annually. Expo 2020 will create a strong investment appetite around the sector, but also other properties
August saw sales transaction volumes up 49% when compared to JulyDemand for villas is expected to surge in the areas closer to the six-month-long Expo 2020The value of off-plan property sales in Dubai has reached an 8-year high
Dubai’s residential capital values as of August 2021 saw villa values increase in double digits annually, while apartments in some areas saw single digit improvements, according to the VPI ValueStrat price index, a valuation-based index that represents the monthly price change experienced by typical residential units within Dubai.
For only the second time in six years, all 13 villa locations and 21 apartment areas monitored by the VPI have seen their capital values either stabilize or improve when compared to the previous month.
For villas, the highest annual capital gains were found in Arabian Ranches (22%), Jumeirah Islands (20.8%), Dubai Hills Estate (18.5%), and The Lakes (18.3%).
The annual capital value performance of Dubai’s apartments, which represent 87% of the residential market, was a mixed bag as compared to villas. A third of all apartments witnessed negative annual growth, a third stable, and a third had single digit annual capital growth.
August saw sales transaction volumes up 49% when compared to July. Month-on-month performance saw ready sales rise 57% and off-plan Oqood (contract) registrations expand 42%.
For VPI monitored apartments, the top annual performers in terms of capital gains were in Palm Jumeirah (6.8%), Jumeirah Beach Residence (6.1%), Al Furjan (4.6%) and Al Quoz Fourth – Al Khail Heights (4.1%).
Topping the sales charts overall were properties developed by Emaar (21.5%), Nakheel (8.6%), Damac (6.1%), and Dubai Properties (6.1%).
Villas to drive growth
Villa segment is expected to drive strong growth in Dubai real estate sector during the fourth quarter as consumer and investor sentiments are up ahead of Expo 2020 Dubai, according to Zoom Property Insights.
Demand for villas is expected to surge in the areas closer to the six-month-long Expo 2020 site, the real estate portal said.
The promising figures of Q1 and Q2, 2021, and the current statistics in the Q3 depict the same pattern, and up to 50% sales growth on a Q-o-Q basis is expected in the villa segment during the October-December 2021 quarter, according to Zoom Property Insights.
According to Zoom Property Insights, transactions for 1,400 villas worth $8444 million and 2,284 villas worth $1.47 billion were recorded in Q1 and Q2, respectively.
Zoom Property Insights said Arabian Ranches, Dubailand, Dubai South, Palm Jumeirah, MBR City, Dubai Hills Estate, and DAMAC Hills 2 are likely to be prime areas for villa transactions during Q4 as the company received many inquiries from investors and end-users.
Off-plan property sales
The value of off-plan property sales in Dubai has reached an 8-year high after months of sluggish growth, bolstered by strong demand as pre-construction projects reignited buyer interest.
Total sales reached $1.3 bn in August, the highest value seen in a month for off-plan residential units since December 2013, according to Property Finder. August also registered 2,599 sales transactions, the highest in a calendar month since November 2019.
“During the pandemic year, the off-plan market significantly declined. The average was about 30% of properties sold were in the off-plan segment. Today, we have bounced back to 2019 ratios where secondary and off-plan segments are almost 50/50,” said Lynnette Sacchetto, director of research and data for Property Finder.
In August, buyers spent an average of 1.9 million dirhams per transaction, up by 53 percent from 1.2 million dirhams in the same period last year.
In the apartment category, the average median price for off-plan apartment sales transactions stood at $517,000 in August, about 48 percent higher compared to $203,000 a year earlier
As of September, Dubai saw 34,000 new properties completed. The bulk of the additional supply, 26,000 units, was from apartment projects, while villa and townhouse developments only turned over 6,000 units.
According to a separate report by Asteco, Dubai’s residential supply included 22,500 apartments and 2,000 villas as of June 2021.
Dubai’s major developers, including Emaar, Majid Al Futtaim, Union Properties, and Azizi Developments have also unveiled villa, townhouse, and apartment projects that are either being developed or have just been launched.
Top off-plan locations transacted in August were in Dubai Harbour (11.8%), Business Bay (9.2%), Jumeirah Village (9%), and Sobha Hartland (7.8%). Most transacted ready homes were located in Jumeirah Village (8.4%), Business Bay (7.5%), Al Furjan (7.2%), Dubai Marina (6.9%), Downtown Dubai (5%), and Dubai Hills Estate (4.5%).
Source- www.thenationalnews.com
This summer, fresh from the West Coast of the U.S., a tech entrepreneur arrived in Dubai. In tow were his family, their family office and a fleet of 30 luxury cars. Everything a billionaire needs to start a new life in Dubai.
“It's very safe here for my children. L.A. isn't what it used to be. Crime has risen since Covid,” says the entrepreneur in his mid-50s who did not want to be named.
Finding a house with space for 30 cars was not easy, says Rohal Kohyar, marketing director of Luxhabitat Sotheby's International Realty. Eventually a villa on its own private estate was identified. It had a basement that could be converted into a giant garage.
Nor was setting up the family office straightforward. Family offices on this scale manage hundreds of millions of dollars in private wealth, a task that requires a team of around 30 specialists.
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“We've had to increase the salary for an E.A. (executive assistant) position for it to be attractive for people to come back to the U.A.E.,” says Zahra Clark, head of the MENA region for Tiger Recruitment.
During the pandemic many expats left Dubai for home. But with so many wealthy families now relocating to Dubai, recruiters are having to offer big incentives to lure investment professionals back to the Emirate.
According to the Dubai Land Department, the volume of property sales in Dubai increased by 136.5% in August compared to the same month last year. Villa sales were up 124% thanks in part to the sale of several Dh 100 million ($27 million) villas in Dubai Hills Grove area. "Normally we do one or two Dh 100 million ($27 million) deals a year. This year we've already done nine of them," says Kohyar.
Real estate booms have come before, but this time is different, says Kohyar. “Now people are buying these luxury properties to actually live in them with their families.”
And they are in a rush, he says. Buyers are not waiting around for developments to be finished off. “They have to be ready now now." The rich are suddenly in a hurry.
There is something else happening in Dubai that is different: People are coming from further afield. Kohyar says most of his clients are coming from major European countries, like the U.K., Switzerland and Germany. Of the super-rich setting up family offices in Dubai, Clark says most are from the U.S. and U.K. Other recruiters say there is a heightened interest from Singapore and Hong Kong.
Many were impressed with the way Dubai handled the pandemic. Vaccines were rolled out quickly among Dubai's three million residents, P.C.R. tests are cheap and available, and the country only suffered a brief lockdown in March and April of 2020. "We're busier now than pre-Covid. This will continue for as long as Europe, U.K. and the U.S. can't get things right in how they're dealing with the Covid situation," says Clark.
But in reality, the pandemic hit Dubai very hard. Thousands of skilled expats started heading home as jobs dried up, the cost of living spiraled and they worried about being stranded abroad.
Dubai's rulers suddenly realized the fallibility of their economy. Expats brought with them businesses, wealth and entertainment. Without them, Dubai's own talented or entrepreneurial youth might follow them overseas.
In an effort to reverse this brain drain, the U.A.E. government started offering "golden visas" to high achievers. The 10-year residency visa was created in 2019, but since the beginning of this year it has been handed out to top students, successful entrepreneurs and award-winning actors.
In July, 45 students who scored more than 95% in their exams were granted golden visas. Raghad Muaiyad Asseid Danawi, a 17-year-old Jordanian student studying at Dubai's Qatr Al Nada School was among them. "This is a great opportunity for me, my parents and siblings," she told Khaleej Times.
That same month, the U.A.E. made 100,000 golden visas available to computer coders. Having lost out to Europe, Israel and Silicon Valley, Dubai now wants to establish itself as a tech hub and has a target to establish 1,000 major digital companies over the next five years.
Alongside students and computer coders, the U.A.E. has also been handing out golden visas to actors. Yasmin Abdelaziz, a popular Egyptian actress was given a golden visa in July, joining a trio of Lebanese pop-stars-Najwa Karam, Marwan Khoury and Ragheb Alama-who have already been given the visa.
All of this makes Dubai more attractive for the wealthy. For Dh 10 million ($2.7 million) they too can have a golden visa. And, thanks to a new law introduced in February this year, (Decree Law 19), they can bring their family offices with them.
But perhaps the most enticing thing about U.A.E. for the lack of income tax. When other parts of the world, and especially the U.S. and U.K., are mooting wealth taxes to pay for the pandemic, Dubai suddenly looks much more attractive.
And, if they start moving their businesses or family offices here, they are more likely to stick around, says Kohyar: "This surge right now is more on a personal level, it's more rounded, and we think this is going to be much more sustainable because people are moving here with their families and with their businesses so they'll definitely
Source- wwwww.forbes.com
The minimum financial requirement to apply for a three-year visa through investment in Dubai’s booming residential property market has been reduced to Dh750,000 from Dh1 million, according to information available on the Dubai Land Department’s website.
The visa facility, available through DLD’s Taskeen Programme, allows an individual who owns a property valued at Dh750,000 or more at the time of purchase to apply for a three-year renewable residency visa with a provision for sponsoring the spouse.
Realty consultants said the lowering of the investment level would give an added impetus to the Dubai's real estate market, which is witnessing a remarkable rebound and growing global investor appeal on the cusp of the largest international event in the region, Expo 2020 Dubai, opening on October 1.
The DLD’s official sales price index shows that August 2021 was the second-highest month since December 2013 in terms of the number of sales transactions in one month, with 5,780 sales transactions worth Dh14.97 billion, becoming the best August in 12 years. In August 2021, 55 per cent of all sales transactions were for secondary/ready properties and 45 per cent were for off-plan properties.
According to a residency law expert, documents required for applying this type of visa include the passport of the investor and an electronic copy of the title deed certificate. The applicant must have a property with a minimum value of Dh750,000. In case the property is mortgage, 50 per cent of the property value or at least Dh750,000 is to be paid to the bank. A non-objection letter in Arabic along with a mortgage bank statement will be required to proceed with visa application.
The husband and wife can share one property, provided an attested marriage certificate is produced, according to the information provided by the website. In case the application is submitted by a third party on behalf of the investor, power of attorney is required. For obtaining children’s visas, a no-objection letter from the father, attested by the notary public, (in case the mother is the sponsor), is required.
Investors in a jointly owned property are eligible to apply if each individual’s share is worth at least Dh750,000, said the expert.
The investment must be in a single residential property and not in commercial properties. The visa offer is applicable to freehold residential properties only and it is not possible to apply for this visa with an off-plan property. The visa length varies between three to five years and can be maintained for as long as the investor owns property in the country.
The three-year visa facility is available to individuals who have purchased a property of Dh750,000 or more, while the five-year visa requires ownership of property worth at least Dh5 million. The amount invested in real estate must not be on loan basis and the property must be retained for at least three years.
Visa by investment in a company is applicable to individuals who chose to invest in or start a business in Dubai’s mainland or its various free zones. Currently, the Dubai Economy offers more than 2,100 types of business licences to start a business in the mainland. Recent reforms have allowed, for the first time in the country’s history, a complete foreign ownership of companies in Dubai’s mainland, by annulling the requirement for commercial companies to have a majority Emirati shareholder or agent.
Investors who meet specific criteria are eligible for a five or 10-year residency, depending on the size of their investment in the country. The investor’s spouse, children, one manager and one advisor are also eligible to apply.
The 10-year long residency visa, or golden visa, is applicable to investors of at least Dh10 million, either through a deposit in an investment fund inside the country or establishing a company in the UAE with a capital of at least Dh10 million, or partnering in an existing or a new company with a share value of not less than Dh10 million, or having a total investment of Dh10 million in all areas mentioned.
“The long-term visa is only issued to those who meet an additional set of standards set by the General Directorate of Residency and Foreign Affairs-Dubai. For example, this system grants long-term residencies for selected individuals with specialized talents such as scientists and innovators in medical, scientific, research and technical fields,” said the residency expert.
Source-www.khaleejtimes.com
Dubai expected to record 3.1% economic growth in 2021 and 3.4% in 2022
Effective management of pandemic, adaptability to change and economic support packages pave way for accelerated growth
Hamdan bin Mohammed: The bright outlook for Dubai’s growth has been made possible by the leadership of Mohammed bin Rashid under whose guidance the government undertook decisive measures to ease the repercussions of global challenges on the emirate’s economy
Sami Al-Qamzi: Dubai is a shining example of an economy that has rapidly and skillfully managed to move from a COVID-19 induced closure and protection phase to recovery and growth
“The Emirate has resumed its development journey guided by a strategic vision that seeks to enhance domestic demand and exports, open new markets, and attract investors and talent”
Aref Al-Muhairi: Dubai economy grew by 1% in Q1 2021, compared to Q4 2020, indicating that the recovery phase has started
Q1 2021 witnesses significant activity in the trade sector, compared to same period in 2020
Trade, manufacturing, real estate, financial and insurance record positive growth
Dubai’s Department of Economic Development (DED) today announced its latest economic outlook according to which it expects the emirate to record a growth of 3.1% this year. Spurred by the hosting of Expo 2020, Dubai’s growth is projected to accelerate to 3.4% in 2022.
HH Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Dubai Crown Prince and Chairman of The Executive Council of Dubai said: “The bright outlook for growth in the emirate has been made possible by the vision and leadership of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, under whose guidance the government undertook decisive measures to ease the repercussions of global challenges on the economy. These efforts were accompanied by new legislation and amendments to the investment and residence laws in the country. Cumulatively, these moves revitalised the economy and stimulated a strong flow of local and foreign investment, allowing the emirate to resume its journey of development, diversification and sustainable economic growth. Over the coming years, Dubai promises to be an even bigger global destination for investment and talent and a city that offers exciting new opportunities for businesses, entrepreneurs and innovators.”
Following the leadership’s directives, DED made concerted efforts to mitigate the pandemic’s impact on businesses, especially by facilitating transaction procedures and commercial licenses. The Department continues to adopt best practices and high-quality standards in its quest to make Dubai the world’s leading smart city. DED’s active engagement and open communication lines with the business community and society at large have ensured the design and implementation of the best precautionary and practical measures, and safety rules that guarantee both public safety and smooth operations.
Commenting on the latest economic outlook figures, HE Sami Al Qamzi, Director General of Dubai Economy said, “Dubai’s latest economic indicators show that the precautionary measures, comprehensive vaccination campaigns, stimulus packages, and legislative amendments that the UAE and Dubai have adopted were right on target. Dubai’s economy is now firmly on the recovery path and supported by increasing business and consumer confidence. This includes in particular business activities that were most negatively impacted by the pandemic such as tourism and transport. Under the guidance of HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, and follow-up of HH Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince and Chairman of The Executive Council of Dubai, the Emirate has resumed its development journey guided by a comprehensive and ambitious strategic vision that seeks to enhance domestic demand and exports, open new markets, and attract investors and talent.”
Economic Outlook for 2021-2022
In the year 2020, Dubai’s actual output was below its existing production capacity similarly to elsewhere in the world. Confinement measures weighed on both supply and demand that jointly led to a significant decline in economic activity, including in Dubai, despite the significant support provided by the government to firms in all sectors.
Al-Qamzi recalled the five consecutive stimulus packages that the Government of Dubai has launched during the period from March 2020 to September 2021, which contained a number of support measures, such as the suspension and reduction of various fees, reduction of customs duties, water and electricity bills, postponing rent payment, and canceling fines. The total financial cost of the five packages amounted to AED7.1 billion, or 1.6% of Dubai's GDP. These packages came on top of economic support measures launched by the UAE Federal Government, including the ‘Targeted Economic Support Scheme’ that the Central Bank of the UAE launched in March 2020 to ease the financial burden on firms and help many of them to avoid bankruptcy.
HE Sami Al Qamzi noted that despite setbacks to the global economy from pandemic-related developments, Dubai witnessed between September 2020 and July 2021 a relatively faster recovery in sectors such as transport and tourism compared to other countries. Expo 2020 is expected to provide a strong economy-wide boost especially in the transport and tourism sectors.
Taking account of recent developments and future prospects and risks during the period ahead, DED forecasts Dubai GDP to grow by 3.1% in 2021, given the significant recovery beginning in Q2, particularly in the activities that witnessed an almost complete shutdown in April and May 2020. The forecast also takes into account the expected positive impact of Expo 2020 on economic activities. As shown in the Figure below, it is also expected that the accommodation and food services sector will grow by 8.5% in 2021, compared to 2020, and transport, storage and communications by 4.1%, reflecting the gradual recovery expected until the end of 2021 in tourism and transport activities. The wholesale and retail trade sector is also expected to regain a large part of its activity following the COVID-19-induced slowdown, achieving a growth of 4.7% in 2021, while construction activity is likely to decline in 2021 by 2% as a result of stabilization in the construction of residential, office, and hotel space, and a relative decline in construction related to infrastructure following their rapid growth recorded in the years before 2020.
Al Qamzi pointed out that growth is expected to accelerate in 2022 and reach 3.4%, driven by the continuous recovery of activities that were most affected by the pandemic, such as tourism and international transport, which will also benefit from Expo 2020 activities in the first months of 2022.
Economic growth of 1% in Q1 2021 from Q4 2020 signals start of recovery phase
The economic performance report issued by Dubai Statistics Center indicates that Dubai’s economy achieved a growth of 1% during Q1 2021, compared to Q4 2020, based on preliminary estimates of the seasonally-adjusted GDP data.
This growth is driven by the outstanding performance of the manufacturing sector, the improvement in tourism, transport and storage activities, in addition to the significant growth in the financial sector’s performance for the same period.
HE Aref Al Muhairi, Executive Director of Dubai Statistics Center, said: "These figures indicate that there is a positive development and rapid recovery of both Dubai’s and the UAE’s economy, compared to 2020, which witnessed major economic declines worldwide, driven by the slowdown in the sectors of tourism, transport and other economic activities. This is a natural consequence of the pandemic on the global economy."
Al Muhairi explained that Dubai’s economy contracted by -3.7% in Q1 2021 compared to Q1 2020. Nonetheless, this contraction points to a positive development in view of the performance back during 2020 when the contraction reached -10.9%, compared to 2019.
Al Muhairi indicated that despite the decline in certain activities in Q1 2021, others, especially those of high strategic significance, witnessed strong growth. This is most evident in the trade sector, which contributes close to 24% to Dubai’s GDP, whose growth reached 2.8% in Q1 2021, compared to the corresponding period in 2020. The trade sector was one of the leading sectors whose contribution to economic activity has lessened the economic impact of COVID-19.
Dubai foreign trade data issued by Dubai Customs indicate that non-oil foreign trade grew in Q1 2021 by 10%, reaching AED354.4 billion, compared to AED323 billion in Q1 2020. Exports achieved a significant growth of 25%, reaching AED50.5 billion, and the value of imports increased by 9%, to reach AED204.8 billion, while the value of re-exports increased by 5.5%, to reach AED99 billion.
The financial and insurance activities also achieved a growth rate of 3.5% in Q1 2021, compared to Q1 2020, and their contribution to the emirate’s GDP rose to reach 12.8%. It is also one of the sectors that contributed to reducing the impact of COVID-19 on economic performance. This performance resulted from the growth of total deposits and loans during Q1 2021, as loans grew by 2.6% and deposit balances grew by 3.3%, while interest rates on loans decreased by 24% and on deposits by 35%.
Moreover, activities in the manufacturing industry also witnessed a growth of 3.2%, and their contribution to the overall economic performance increased to 9.5%. Consequently, it was one of the activities that contributed to reducing the impact of the global economic decline on the emirate’s economy. The activities of the food industry, pharmaceutical products, rubber and plastic products, and base metals manufacturing contributed to the growth of the manufacturing sector positively.
Real estate activities also achieved a growth rate of 2.4% during Q1 2021, compared to Q1 2020, contributing to 8.7% of the real GDP. Consequently, it was one of the supporting activities to overcome the effects of the global economic decline and its consequences on the Emirate's economy. The real estate sector in Dubai achieved a significant growth in sales transactions in Q1 2021, compared to Q1 2020 and 2019 before the outbreak of the epidemic. This shows the high resilience of the real estate sector in Dubai and its ability to respond to economic developments and demand volumes.
The Dubai Statistics Center report indicates that during Q1 2021, the COVID-19 pandemic affected the accommodation and food services, transport and storage sectors. Both activities decreased by 25.6%, compared to Q1 2020. This decline is considered normal under global economic circumstances, as most countries of the world closed their airports, land and sea crossings to passenger traffic and adopted precautionary measures, causing the reduction of movement of international visitors, and significant negative consequences on tourism movement globally.
While it is expected that Dubai’s economy will be affected by global conditions given its critical role in regional and global trade and airline passenger traffic, it is important to note that the emirate’s flexibility, advanced capabilities and strategic administrative system enabled a rapid and effective response to the crisis and thereby minimised the economic costs of the pandemic, both in absolute terms and compared to many regional and global economies.
Source-mediaoffice.ae
Relocating his wife and three young children from Essex in southern England to Dubai this summer made perfect sense for Brian Myers from a lifestyle and career perspective.
For Mr Myers, chief executive of Equiti Brokerage, a shift to the UAE took him away from the seemingly endless cycles of lockdown in Britain, as well as growing fatigue with the UK’s handling of the pandemic and Brexit.
“In the UK, it's hit an inflection point with coronavirus and all of the politics that's just relentlessly around you,” the Briton, 40, tells The National.
“When you look across the world, particularly as a family with small children, there seems like very few places better than in Dubai. We love Dubai because of the weather, the infrastructure, the ease of transport and getting whatever you need quickly. It really fits our requirements as a family.”
Mr Myers is not alone. The UAE has experienced an influx of British expatriates in recent months, attracted by the lure of new job opportunities, more visa options, a tax-free salary, year-round sunshine and a better lifestyle.
Russell Owen, chief operating officer at Lootah Real Estate Development, says the company has noticed a strong surge in the number of British expatriates looking to relocate to the UAE over the past few months.
Many who relocated to the UK during the Covid-19 crisis due to job loss are now returning, he says.
While their decision to return home ensured they could secure free education and financial support during the pandemic, now that the UAE has reopened and “things have returned to normal”, the country is seen as “a shining light in terms of how it deals with Covid and the support residents get from the UAE, especially when compared to what’s happening in the UK,” Mr Owen says.
The handling of Covid coupled with a tax-free environment and a lifestyle that can’t be offered in the UK is why we have seen so much demand from British expats.
Russell Owen, Lootah Real Estate Investment Development
“The second reason for the influx is from new expats, who for many of the same reasons have decided that Dubai is in fact a better place to be than in the UK,” he adds.
“The handling of Covid coupled with a tax-free environment and a lifestyle that can’t be offered in the UK is why we have seen so much demand from British expats.”
There are more than 120,000 British citizens living in the UAE, the British Business Group in Dubai and the Northern Emirates reported.
The number of UK-registered companies in the Emirates – those registered, banked and taxed in the UK – is around the 6,000 mark, up from a previous figure of 5,000, said John Martin St Valery, chairman at the BBG.
This is in addition to the “many more thousands of British-owned and managed businesses operating throughout the UAE who don’t necessarily have a UK presence”, he says.
PRO Partner Group, a company set-up provider with offices in Abu Dhabi, Dubai, Oman and Qatar, has reported a 60 per cent rise in UK registrations in the Emirates in the first quarter of this year, compared with the same period last year.
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Meanwhile, BBG has seen a 24 per cent increase in new members since March with “a good return of interest” from multinational companies.
“The majority have requested our top-tier membership level – Advance – for the increase in event attendance, representatives named on the membership and opportunities to promote their offering to the rest of the membership and our stakeholders in the UAE and the UK,” says Mr Martin St Valery.
The organisation has also noticed a rise in job postings in its e-newsletter, particularly in marketing roles
Bradley Jones, executive director of the UAE-UK Business Council, is not surprised by the influx of new expatriates, with expectations numbers will continue to go up as Britons consider fresh opportunities in the country.
Mr Jones, who has lived in the UAE on two occasions, first between 1991 to 1994 as a teacher working in Fujairah and later between 2018 to 2019 as global business development director for education provider Gems, says the British expatriate population was slowly diminishing during his last stint in the country.
The arrival of the pandemic in late January 2020 accelerated this trend.
“Then, during Covid, some expats made the decision to return to their home country,” he says. “Now there is going to be a surge because this is all about opportunity in the UAE.”
The game changer, he says, is the UAE’s new visa regime, which includes a one-year residency permit for remote workers that makes it easier for highly skilled specialists in certain industries to live and work in the Emirates.
However, he expects the profile of the British expatriate and the types of industries they work in “might be a little different from how it was in the past”.
“There might be less demand for senior managerial staff and more demand for people with very specialist skills in the medical or engineering sectors,” he says.
“Anything to do with technology, such as specialist skills in AI, robotics, 3D printing and FinTech – it’s those kind of sectors where there will be high growth.”
For Mr Myers, the ease of doing business was definitely a factor for his decision to move to Dubai.
“The UAE is so open to business and the way they've managed to keep society moving through the crisis has been fantastic,” he says.
“In the UK, people are very battle worn after 18 months of lockdown and staring at a Zoom screen. And then you come somewhere like here and you're like, 'Oh, wow, life's moving.'”
Frustrated by the effect of Brexit on the UK’s financial services sector in the City of London, in which Britain lost up to 7,000 financial services jobs because of its exit from the EU, Mr Myers says coronavirus made many realise you could work anywhere in the world and thrive without paying high rates to live and work in the UK capital.
“Prior to Brexit and coronavirus, a lot of people assumed you wanted to make it in the City because then you could make it anywhere. But now things have been deconstructed, so people aren't really tied to that notion. Whether they come to Dubai or somewhere else, people are more open to it now.”
Mr Myers has swapped his daily train commute to London for a 20-minute drive to the office on Sheikh Zayed Road, with the community spirit he has encountered living in Dubai’s Jumeirah Golf Estates also a bonus.
“We already know three people down our road and we went to the clubhouse the other day there was a party there for the kids going back to school,” says Mr Myers, who has moved into a five-bedroom villa in the development.
“These are things I haven't seen in the UK too much. Obviously, there is also weather and so much for the children to do with all the soft plays, water parks and beach days and we have a pool for them to play in,” he says.
“We just fancied a change and all of those things added to it.”
The family plan to stay in Dubai for the children’s primary school education, with their eldest child, aged 6, securing a place at a British-affiliated school.
Schools have also noticed a rise in demand, with some institutions managing wait lists across certain years, “meaning some families are committing to two school runs – in the short term – while they wait for all of their confirmed places at their preferred school,” says Mr Martin St Valery.
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For Briton Sonia Fuller, who relocated from Singapore to Dubai in June, a move to the UAE was preferable to returning to the UK full-time, because she is not “cut out for UK life”.
However, she struggled to secure two school places at the same institution for her young daughters.
“School places are difficult,” says Ms Fuller, who has lived in the Emirates before. “At the school I wanted, they only had six leavers this year, which is crazy compared to other years.”
Other newly arrived expatriates laud the ease of making a doctor’s appointment in the UAE compared to the UK, where the National Health Service is still hampered by high coronavirus cases as well as a backlog of medical care demands.
And when it comes to the cost of living, Mr Myers has found fuel to be cheaper as well as services such as having a handyman fix things in the house, while eating out and entertainment is “comparable to the UK”.
For Susan, a financial services professional who did not want to reveal her full name, her decision to move to the UAE was driven by a desire for a change.
“I’d just had enough of London,” she says.
“I went to the ladies' get-together last week and I was quite shocked at how many new Brits have arrived in the past month or even six months.
“It's definitely a trend, a huge trend. If you look at Facebook groups, there are loads coming in September asking for advice such as where to stay and which schools.”
However, Susan says new arrivals will find some things, such as food and everyday items, can be more expensive.
“I went to buy some wrapping paper yesterday and it had the UK price on it of £1.75, which is about Dh9, yet they charged me Dh17,” she says.
For Ms Fuller, Dubai is less expensive than her former lifestyle in Singapore.
“You're paying so much money to live in a place where you can't enjoy all the local travel to Thailand and Bali and the local lifestyle and then you're not seeing your family,” she says of her former life in Singapore.
With her business also having a Dubai branch, it seemed the perfect alternative to life in the UK.
“I'm seven hours from Singapore and seven hours from the UK,” she says.
“I've been abroad for 14 years and I am used to live-in help at a normal cost and the sunshine and swimming pools. At the weekend, the kids can go in the pool,” she says.
As a headhunter, Ms Fuller says a number of clients have asked her to find them a job in Dubai.
“These are people who are not quite ready for England lifestyle and those whose kids are going off to boarding school or university and, again, they don't want to go to England but they want to be closer but they want the UK schooling,” she says.
“For those coming from the UK, you're going from 40 per cent to 0 per cent tax, from grey skies to blue skies – it’s a bit of a no-brainer.”
The rise in the number of new Britons is also having an effect on the property market, with residential transactions in Dubai hitting an eight-year high in the first half of 2021 as demand for bigger homes increases.
And rents are also on the rise. Prime rental prices in Dubai climbed 5 per cent between January and June, driven by a 20 per cent increase in rents across certain villa communities, Savills said, with the emirate recording the highest level of rental growth in the first six months of the year alongside other cities such as Moscow and Miami.
The preference for more indoor and outdoor space has seen demand for villas soar, in both the rental and sales markets, says Mr Owen.
“Key communities such as the Springs, Lakes and Arabian Ranches have seen demand surge with availability of units becoming more scarce,” he says.
While escaping Britain’s long winters and political system appears to be a key driver for some, Mr Jones says everyone “likes to moan about Brexit and the weather but the factors driving people to leave the UK and work in the UAE are pull factors rather than push factors.
“It's quality of life. It's the fact that they can do a skilled job for which their talents are recognised and the opportunities for professional growth.
“It’s also a good environment for those looking to relocate with their families, with good schools on offer for children and opportunities for work for a spouse.”
Source:.thenationalnews.com
Dubai: Dubai hosting in-person events shows signs of growing economic growth in the emirate, said Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Dubai Crown Prince and Chairman of The Executive Council of Dubai.
Sheikh Hamdan highlighted the performance of the exhibition sector has resulted market growth and opened up new opportunities for Dubai. The emirate is partnering with multinational firms and major companies to contribute to the international effort and unlock new development avenues.
Sheikh Hamdan highlighted the vital role played by the construction sector in driving sustainable development. He emphasised on adopting the latest technologies and using eco-friendly materials to ensure the sector has a positive impact on the environment while promoting growth and development.
Source:gthenationalnews.com
Dubai recorded Dhs14.97bn in real estate sales transactions in August this year, the highest value in a month since January 2017.
A total of 5,780 transactions were also recorded, making August the second best month since December 2013 for the number of sales transactions.
This brings the year to date total to 37,537 sales transactions worth Dhs88.12bn.
From January to August, the value of real estate sales transactions was 22.61 per cent more than 2020 as a whole. The entire year of 2020 had 35,401 sales transactions worth Dhs71.87bn.
The off-plan market transacted 2,599 properties worth a total of Dhs4.95bn while the secondary market transacted 3,181 deals worth Dhs10.02bn.
“These figures are a true testament to the strength of Dubai, particularly the residential market. Consumer and investor sentiments are up, which shows the confidence of people, including foreign direct investment into Dubai. With EXPO2020 right around the corner, I expect it to continue to increase,” says Lynnette Sacchetto, director of research and data.
“The off-plan market is back again, thriving, with projects selling out in hours which shows that investors have confidence in the future of Dubai.”
The overall average sales transaction value increased to Dhs2.58m in August, an increase of 1.57 per cent when compared to July 2021. Secondary/ready average transaction value increased to Dhs3.14m, marking an increase of 5.91 per cent and off-plan average transaction value decreased by 1.3 per cent to Dhs1.9m.
According to proprietary Property Finder demand data, the top areas of transactions in the month of August 2021 for villas/townhouses were the Arabian Ranches 3, Dubai Land, Dubai South, Tilal al Ghaf and Damac Hills 2. As for apartments for the same period, the top areas of interest were Business Bay, Jumeirah Village Circle, Dubai Harbour, Mohammed bin Rashid City and Downtown Dubai.
Source:gulfbusiness.com
