In a special report published on May 6th by the Financial Times on Foreign Direct Investment (FDI) Dubai has for the first time been classified as the top destination city in the world surpassing the likes of London and Shanghai.
Continuing to lead the way in the Middle East and Africa, the United Arab Emirates accounts for over 50 per cent of the total projects in the region. read more…
Yesterday, April 23rd it was reported that Dubai’s economy grew one percent in the first quarter of this year compared to the last quarter of 2008, according to a senior official.
Omar bin Sulaiman, the governor of the Dubai International Financial Centre, said government spending and an increase in confidence thanks to a $10bn loan from the United Arab Emirates central bank had helped foster recovery following the slowdown witnessed last year.
“We estimate Dubai’s economy to have grown by one per cent in the first quarter, fuelled by the government stimulus package and the increase in expenditures,” he told a meeting of the British Business Group in Dubai on Wednesday, adding that confidence was returning to the economy. read more…
British government distances itself from stories carried by some British newspapers that target Dubai in relation to the effects of the current global economic crisis.
According to GCC news website Arabian Business.com, the British Foreign Office spokesman John Wilkes described the criticism waged by the British press on Dubai as “over exaggerated”. “Dubai is not the only place that is affected by the global recession. The whole world is suffering,” Wilkes said in a press conference, according to news agency WAM.
The comments from Wilkes followed an article in the UK’s Independent newspaper on Tuesday under the headline ‘The dark side of Dubai’.
He referred to the UAE as the largest market in the region for British exports, saying that his government was committed to strengthening ties and exploring business opportunities in the region. read more…
Deloitte Touche released its annual global hotel rankings report for 2008, which was much awaited by majority of those that operate in the global hospitality sector. This survey gives an analysis of the global top rankings for hotels based on their revenue per available hotel room (RevPAR), occupancies and their average room rate. This report continued to highlight the strength of the Dubai property and the Dubai tourism and hospitality market as the Emirate was ranked high up on all three of the top 20 categories.
This is an achievement to be applauded, especially with the current economic climate around the world. Only five other countries, including Paris and New York, were ranked in all three of the categories. Dubai also continued to achieve the highest RevPAR and average room rates in the Middle East. This contributed towards the gross domestic product earned by the Emirate and increased the liquidity in Dubai’s economy.
However, the effects of the global economic climate were evident as the average occupancy levels throughout the world were slightly lower then last year. Nevertheless, Dubai managed to still secure the third highest position in terms of best average room rate and second highest position in terms of the highest RevPAR in the world. This demonstrated that, Dubai is still one of the leaders in the hospitality sector relative to other destinations around the world.
It has been announced today that Flydubai, Dubai’s first low cost airline, is to operate from terminal 2 of Dubai International Airport. The airline, which launches its first routes in the middle of 2009 is operating a fleet of Boeing aircrafts, each of which contain 189 economy class seats. Launch routes and destinations are based on 4 and a half hour fly time and are to be announced in the near future.
Enhancements have already started on Terminal 2, with phase 1 due for completion this week. The impressive terminal already has large departure and arrival areas, quality food and drink outlets and exceptional facilities for children. Dubai International Airport is confident that these improvements will further streamline the arrival and departure process.
Flydubia’s operations team is finalising routes, which are likely to include the Indian subcontinent, southeast Europe, north and east Africa, and the Middle East. The low cost airline’s aim is to serve Dubai’s large expatriate population by offering the option to fly more frequently.
This easier access should help Dubai tourism, especially with the planned investments into increasing tourists within the city. Making the city more accessible will also increase the likability of Dubai property.
It was announced that by the end of last week the total value of land transactions reached a peak of AED 3.09 billion in Dubai. Investment into land sales exceeded AED 1.90 billion, which was more than half of the total transactions. This shows the continuing faith in the Dubai property market by those in the industry, especially during the current economic climate faced by nations around the world.
The Lands Department, responsible for overseeing Dubai property and land transactions, registered a total of 50 sales transactions by the end of this week. Out of these transactions the most valuable plot sold was for around AED 600 million in Dubai. Investments into various properties around the Emirate were also observed, as sales of over 760 apartments and villas took place.
Results showed a higher demand for Dubai apartments over villas, with 735 units sold being apartments as opposed to just 25 villas. In order to secure these investment opportunities, a total of 53 mortgages were registered, with 37 of these accounting towards providing finance for apartments and villas.
Dubai’s Public Transport Agency division at Roads and Transport Authority (RTA) have recently announced the inauguration of a new transport route. This addition to the transport network will be covered by a new bus route that will provide public access to various additional areas of Dubai. read more…
Dubai’s total Land transactions reached AED 860.51 million on the 25th of February. The Dubai Land Department reported this and added that out of these transactions more than AED806.65 million was contributed by sales. The most valuable plot sold by the Lands Department on the day was worth approximately AED 200 million. read more…
Dubai’s real estate market has to a degree stood up to the ongoing speculation concerning its meltdown. Tales of its demise appear largely exaggerated. It’s true that confidence could be higher, that some properties have seen prices tumble and that a number of projects are on hold. Hardly surprising considering the scale of the worldwide economic downturn and much less noteworthy than some of the tales of woe emanating out of some of the less robust international business centres.
Any overcapacity or sizeable real estate price reductions might actually be seen as a necessary let off of supply and demand steam, allowing new potential investors an affordable piece of the property action, turning uncertainty into opportunity.
Dubai has established its position as a progressive regional business hub by cutting red tape, displaying tolerance to different cultures, and a relentless commitment to building the region’s finest infrastructure. Its foundations are strong and its future positive.
Finance ministers began 2009 by announcing expansionary budgets, with the hope that a spending round may kick-start their vulnerable domestic economies. Saudi Arabia, Dubai, Oman and Qatar have all announced massive capital expenditure plans for the year for major infrastructure projects. Dubai’s government plans to increase public expenditure by around 20 percent in 2009 to stimulate the service-based economy.
As part of the combined process of stimulating the economy and revamping its regulatory system Dubai is introducing real estate reform that will add more transparency and cohesiveness into the market. These reforms are aimed at attracting foreign investors and providing better deals to customers.
A co-operation pact between The Real Estate Regulatory Authority (RERA) and the Dubai Department of Economic Development will regulate real estate licences and promote best practice.
Even better, two new laws have been put in place regulating the transfer and ownership of land, protecting investors from developers who fail to begin or finish projects on time.
The first protects investors from start dates being put back and states that developers must be the registered owners of the land and complete 20% of construction before selling off-plan.
The second ties payment plans to construction progress, forcing developers to start work and ensuring investors need pay only 20% of the property price up-front.
It’s encouraging to see the authorities taking such a constructive, long-term view of the property market and this is definitely a good thing for investors.
Dubai eGovernment has awarded government entities who participated in the Emirates’ eLibrary service initiative with special certificates. Dubai eGovernment announced recently that a group of 24 representatives from Dubai Government’s different departments were rewarded with the certificate for successfully completing the eLibrary System Course. read more…
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