Dubai Real Estate Boom

Merger of Amlak & Tamweel- Deal or No Deal?

2009-02-13T02:24:00.000-08:00

Amlak & Tamweel- Deal or No Deal

Merger of Amlak & Tamweel- Deal or
No Deal?

Amlak-Tamweel Deal rethink on another ploy to keep the
investors in the dark. A merger & acquisition was announced but no one bothered
to inform the investors who had their hard earned cash tied up in the market
.The investors are surrounded by so much negativity because there is no
transparency and accountability. All tradings were suspended without notifying
the investors. Do not these people have the rights to know what will happen to
their investment? The committee is said to be considering and reviewing various
options.

Mortgage Lenders’ Performance:

Amlak & Tamweel should evaluate their performance in the
light of the emerging market situation. Some analysts are of the opinion that
bailing out will make things worse. They think that letting these companies go
bankrupt is better off than bailing out. Experts are of the opinion that merging
the two high risk companies will essentially create more problems. The investors
are at their wits end because no one is giving any solution. If the company
sinks what happens to the investors who had their only saving invested in a
company which seem to be least concerned about the investors’ night mare. A
quick injection of liquidity could accelerate the process of recovery. Even if
the companies are nationalized then too the authorities should uphold the
interest of the shareholders. If the government fail them now, many investors
will lose confidence and hide their cash under the mattress. Investors should
not be ignored otherwise many law suits will follow.

Solutions !

Hopefully the investors will not have to take any drastic
action. Everyone was aware of the market manipulation but took no action. Over
indulgence and excess in this culture has brought about such a crisis. On a
brighter note most expatriate investors remain convinced that the government
actions to be reinvigorate the economy with the nations substantial oil revenue
will help to provide a kind of a buoy to the market in this economic turbulence.

Economic Gloom in U.A.E and The Expats

2009-02-11T07:14:00.001-08:00

http://dubairealestateboom.blogspot.com/
Economic Gloom in U.A.E. & Expatriates’ Fate?
Posted on: 11 February 2009:

Economic Gloom in U.A.E. & Expatriates’ Fate?

The growth rate in the UAE has been unprecedented in the last few years and the return to a more sane rate of growth was inevitable. The sudden economic slowdown came as a blow to many expatriates as few official information is ever made public. There is always a tendency to keep the general mass in the dark. Why the cover up? It is difficult to estimate the victims of this economic crisis as thousands of people have been asked to go on long leave or simply being laid off. Why weren’t the people warned about the dire situation? People have invested their life savings into the stock market and the value of the same has fallen below IPO rate.
Who could have foreseen such a gloom in a market which announced the constructions of many new towers every single day.The whole newspaper would be splashed with the figures of the property boom. All the talk that the market will be able to weather the global crisis much better than the West was only a gimmick to veil the real picture. Lack of transparency is deep rooted in the real estate sector. The developers and the agents cannot be trusted. No one wants to take responsibility. Hence, the general mass, which had faith in the market and the system are in a lot of trouble. The little money they had they wanted to own something in this country because it has become a second home. But their life has become a nightmare. Now their saving is with the developers and there is no way to get it back. They are not accountable to anyone. The laws of the country do not protect the gullible who dared to dream of a better life and a home. Who will listen to these people’s grievance?

What is needed to get Solutions?
The economy needs massive intervention by shot in the arms. The corrupt developers must be brought to justice to regain the trust of the community who think and love UAE as their home country. People have lost their hard earned cash and do not know who to ask for help because everything seems to fall deaf ears.
We all know the market, and the economy will pull itself through, may be in two or three years’ time. But will it be too late for some of us. It is our earnest plea the government of UAE to take the situation their own hands and help out the hard working people

Dubai- A destination For Tourists

2008-08-13T12:41:00.000-07:00

For many years people from all over the globe have flocked to Dubai for the works, jobs, and business opportunties. Dubai gained value for career nad for better life there. But Dubai developed its amenities more than ever, that expats and foreigners from Europe to USA,Asia to Africa are seriously contemplating relocations here on a permanent basis. The real estate price has inflated over 1300% over the last one year period. You will not get a place to buy or make permanent settlement tomorrow.
Now started students from around the world to come here to learn.New Univeristies are opened with multiple programmes, networking academy programmes, designing, and computer networks.

DUBAI NEEDS TO MODIFY RULES

2008-06-05T23:03:00.001-07:00

Some Laws in Dubai need to be Changed keep with Developmental change
- It will reduce the commercial costs for the investors.

-There will be a positive effect on the business in Dubai Real Estate.
-Some Local and Federation Law must be modified to easy the business and thus Investors' life will be smooth.
- US sub-prime did not much affected the UAE business boom. Sky is the limit says some expert economist.
- The growth here is unprecedented due to the slow down in US economy.
- The industrial sector in Dubai is growing leaps and bounds contributing to the GDP during 2007 & early 2008.
- Though the inflation has made the citizen a bit puzzled, its impact on the growth in tremendous that the people will enjoy in the years to come.

World's Highest Tower-Price Soars

2008-06-05T23:03:00.000-07:00

Rates of Dubai Properties Soar

The Property price rates in Dubai soaring .Three months before, the price in the world’s tallest tower was Dhs.4, 000 per sq. ft. now jumped to Dhs.18, 000. The investors are willing to pay 20-40 per cent premium in the secondary market. Buyers are looking plans with little down payment. In the Business Bay area the price per sq. ft is Dhs.1, 800 to 2,500 while the Donald Trump Tower-Dubai sells at Dhs.12, 500 to 15,000. For residential customers the price at Burj Dubai is Dhs.15000 per sq. foot while it is 18,000 for commercial customers. If you do not buy now, I am sure by next year you will regret as it may touch Dhs.32, 000 per sq. ft. to Dhs.40, 000 even. For Down Town Burj Dubai the price ranges from Dhs.8, 000 to Dhs.10, 000 per sq. foot. This further reinforces the fact that there is no seasonal slow down in realty prices in Dubai in near future.

The brokers are concerned about the speculative nature implied in valuations of the properties direct from the developers and the secondary market. However, it is observed a little decline in the rental yields from 7.1 per cent in April to 6.9 per cent in May.

The Palm Jumeirah retained first place in terms of returns on investments as the rate risen to more than 600 per cent over the past five years period. Some villas were sold there for Dhs.2.7 million five years ago are being sold at Dhs.13 million. Office units in the Business Bay saw a big demand from the reseller who bought it earlier
Please note that the Burj Dubai-world's tallest tower is the most important area in the 20 billion downtown projects. The height is reported to be 818m. It will include 30,000 apartments, nine hotels, 6.2 acre of car parking, 19 residential towers Dubai Mall and 30-acre artificial lake.

The Trump Tower owned by Donald Trump is located at the Palm Jumeirah is the most luxurious commercial building in Dubai. The 48-story mixed-us building will have 300-rooms, five hotels, 360 residential apartments, access to private beach, yacht club, tennis court, gym, pools and fitness center and gardens.

Real Estate & Water Sports growth in UAE

2008-04-30T09:09:00.000-07:00

Real Estate & Water Sports growth in UAE

With the growth of Real Estate leisure boating and other water sports industry in UAE, in particular in Dubai, Abu Dhabi and Sharjah set to growth spurt to 60,000 berths by 2015. Investment in all types of marine projects in UAE is taking off. Firms have been in dramatic jump in sales over 125% than previous year.

Abu Dhabi is planning to have 20,000 more boating berths & Dubai 40,000 by 2015. Sale of water sports like machines and gears, jet ski between Dh66,000 to 70,000 per unit. Retail is fun here –that is “toys for boys”. Demands for technical & design knowledge with high profile products so that they can build boats have grown tremendously. A 25m dirham service center is being built in Mussafah , Abu Dhabi

Market DFM Reviews

2008-04-21T14:44:00.000-07:00

Dubai:
DFM REVIEWS
Dubai Financial Market yesterday closed higher for a fifth trading day, adding 0.15 per cent to 5,720.51.
Emaar Properties rose 0.87 per cent and Emirates NBD 0.43 per cent.
Abu Dhabi's benchmark, which crossed 5,000 points for the first time in more than two years on Sunday, slipped 0.09 per cent to 4,995.74 points, its first lower close in five trading days. National Bank of Abu Dhabi declined 1.42 per cent and Abu Dhabi Commercial Bank fell 1.32 per cent.
Elsewhere in the Gulf, shares rose as regional companies reported first-quarter earnings growth.
Saudi Kayan Petrochemical increased to its highest in almost two months after announcing results.
Qatar Islamic Bank gained for a third day as the lender said first-quarter profit surged 69 per cent. Barwa Real Estate jumped to a record.

Saudi Arabia's Tadawul All Share Index added 1.2 per cent to 9,638.79, its highest close since March 12 while Qatar's Doha Securities Market Index advanced 1.1 per cent. "Strong earnings have boosted sentiment which brought funds and retail investors back into the market," said Bashar F. Eisa, an analyst at Dlala Brokerage & Investment Holding in Doha.
Saudi Kayan gained 3.8 per cent to 27.5 riyals, its highest close since February 25.
The company building the world's biggest ethylene-glycol plant reported first-quarter profit of 95.6 million riyals ($25.5 million).
Qatar Islamic Bank gained two per cent to 125 riyals, its highest close since May 2006. Barwa Real Estate jumped 8.8 per cent to 62.9 riyals.
The Qatar-based property-services business said first-quarter net income surged 88 per cent to 332.8 million riyals.
Oman's Muscat Securities Market 30 Index increased 0.5 per cent while the Kuwait Stock Exchange Index declined less than 0.1 per cent and the Bahrain All Share Index dropped 0.3 per cent.

Deyaar News

2008-04-21T14:31:00.000-07:00

22.04.08
22.04.2008
Dubai property developer Deyaar, which last week said its chief executive had been detained on allegations of financial irregularities, reported first-quarter profit of Dh202 million ($55.01 million).

The firm, whose revenue in the quarter hit Dh460 million, has accepted the resignation of two directors, it said in a statement late on Sunday, without giving a reason.

Former Deyaar Chief Executive Zack Shahin was detained and under investigation for alleged financial irregularities, the company and Dubai authorities said last week.

Deyaar said after the arrest that Shahin had resigned, without giving a reason.

At a meeting of Deyaar's board of directors on Sunday, members Hussein Hassan Mirza Mohammed Al Sayegh and Sultan Ahmad Khalfan Al Ghaith resigned, the company said, without explaining why.

Abdullah Ali Al Hamli and Butti Abdulla Al Jumairi replaced the two directors, Deyaar said. (Reuters)

Scam in Deyaar Real Estate Developer

2008-04-20T13:46:00.000-07:00

Deyaar CEO detained, says chairm

Deyaar, Dubai's second-largest property developer by market value, said its former CEO had been detained by the authorities pending investigation into alleged financial irregularities.

Deyaar said on Thursday that Chief Executive Officer Zack Shahin had resigned, without giving a reason.

"He's been detained," Deyaar Chairman Nasser Al Shaikh told Reuters on Thursday. "There is an investigation by the public prosecution ... he did something he was not a supposed to do."

Shaikh would not be more specific saying only that the investigation was "financial" in nature.

"From our side we saw a few things that raised our concern and we are now going through the legal system for the benefit of our company and our shareholders," Shaikh said.

"Whatever is going on right now, it will not have any real impact on Deyaar profitability," Shaikh said.

The company named Adnan Tareen, head of finance, as acting CEO. Shares of Deyaar were down 2.13 per cent at 0607 GMT.

Shahin could not immediately be reached for comment on his mobile phone. (Reuters)

News- Dubai Real Estate

2008-04-11T00:16:00.000-07:00

News
As much as 15billion Dirhams($4.09 billion) will be refinanced for the development of Dubai Land, Burj Dubai (Tallest man-made structures in the world) , a sourece from government disclosed here on 7th April 2008.
The emirate will spend about Dhs.52.5 billion($14.3 billion) over the next five years, building roads,bridges, metro network etc.
Dhs1 trillion Dubai projects:
55 of the 124 hospitality development will spend about 1 trillion dirhams in tourism and hospitality projects due to its booming attraction in the world.
Arabte Holding will construct Dh.3 billion worth of new housing of over 2300 new houses in Mohammed Bin Rashid Housing Est.-source: Dubai bourse.
Global Impact of rising food Price:
Due to impact of high and increased food prices, Dubai Economy ministry hase met WFP-UN officials how to overcome this issue. Two big Department stores have promised that they will maintain the 2007 prices of all essential food items etc. Lulu Hyper Market and Dubai Union Cooperatives pledged to curb the rising cost of food and essetial commodities by setting prices for 37 items. Will they be succeed in the global recession where USA is adopting the same policy to apply Food Stamp first time since 1930's mass recession.
Whta do you guess?

A Real Boom that May not Slow Down Soon

2008-04-07T08:53:00.000-07:00

It is reported that a Development worth $3 Billion of property is under way in the Middle Eastern Region.
The present booming of property market will never slow down in near future. The current rate of growth sustainable due to reselling the houses and appartments in Dubai, and other parts of Middle East. Specially, Abu Dhabi is also well boomed with very high and sky rocketing the market price of new buildings/holdings. Most people from Europe or USA /India/ East europe/China/Russia are buying for investments as this trend will continue at least for the next 10 years. If there is no war or earth quake here, it is imperative that the boom will continue for a long period of time. Otherwise tycoon like Mr. Donald Trump will never put his hands in the development in Dubai palm beach properties. Boris Becker has his own tower for reselling or renting. Can anyone even imagine in EU or America to have such facility in their own country ?
Other Parts of Middle East as Well
Over Dhs750 billion will be spent in Abu Dhabi in the next few years to develop the free holdings. The demands are great. So we feel like Dubai, the property market in Kuwait, Saudi Arabia, Bahrain, Qatar, and Oman will be continued with billions of dollars of investments.
It is planned to launch new projects in UAE - in particular at Dubai, Abu Dhabi, or Ras Al Khaimah or Ajman. New ideas are grown to develop the islands. That is one of the eighth wonders of the world.
Difficulties:
It is observed that it's difficult to get good contractors, skilled labors, cements, rods, or other building materials for timely constructions. This is due to Chinese demands for all those items.

Good New Laws:
Dubai is coming up with new laws and regulations such as escrow account and strata law to regulate the Real Estate development. These laws will make life easier and safer in Dubai. That will boom the property market further. Investors from abroad will get confidence, that's very good sign as the Government is looking out for the best interests of the investors.

Getting experienced and talented people in Real Estate sector is becoming an ardous task. However, there is still a lot of talents available in the ME.
Most important is that the developers will finance the buyers/investors by extending funds.
This is my personal opinion. You may feel free to comment at any time by sending me an email to petrozil at eim.ae and I will review and publish it sure .

Dubai Real Estate Boom-Your Lifetime Opportunity

2008-04-06T12:23:00.000-07:00

Have you heard about Dubai? A heaven on earth-a City of Gold where you can dream your heaven house to live like a king without any security concerns at all. Ealier days people have been going to Europe of USA by migrating to have a better life style. Now gone are the days where you could think of a heavenly living in those countries than Duabi-UAE. Here you get your all living tools without any discremantion. Rather you get more being an European or US-Canadian citizen.
We wil provide all related information free how to get best Real Estate information, like buying or selling or owning one with luxury. Have fun here with Golf, drinks, blondy girls, sea beaches.
Write to us on petrozil@eim.ae to get free information and financing facilities for foreigners how to get advantages of buying Real Estate by mortgage while spending no dime.