Category Archives: Property Market in Dubai

Top 10 insights on why it is important to buy a home in Dubai?

By Anitha Lakshminarayanan

Why should you buy a home in Dubai, and before I begin to elucidate the top insights about the market, it reminds me of a small story, Last week my friend Sheba and I were sitting on my balcony and chatting. Sheba was winding up and going back to India and she felt that she could’ve bought a home here that could give her rental returns even if she got back to her heritage, and wanted to live there. Sheba’s story stimulated me too and I was wondering whether to buy a home in Dubai and here a few facts to ponder over:

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It’s a buyer’s market

  • Although it’s a buyer’s market right now, the rental market is very competitive. In spite of the fact that it is saturated with supply and new projects to be handed over. The current regulations help in controlling the supply further.
  • Most of the realtors feel that it is encouraging to see heavy transactions in Q4 2017 and that is a good sign so far.
  • For that matter, any property investment is long term and if you wait for a long-term, you are definitely going to yield returns and the best returns are in Dubai Silicon Oasis, Dubai International City, Dubai Sports City, Dubai Investment Park and Al Furjan

Renter’s market

  • Since it’s a renters market, it is also ideal to invest in prime locations now such as Jumeirah Lake Towers, Dubai Marina, and Jumeirah Beach Residence

 Dubai land prices up by 2.7 %

  • The prices are reasonable, especially in Dubai land where the apartment prices are actually up by 2.7 % from a year ago, In addition to Dubailand, Dubai Sports city continues to do well too as several projects are getting completed there.

So Dubai market is all about yield and capital returns whereas in other markets, Hong Kong, London, New York, it’s all about capital appreciation. If you look at net yields in Dubai, you can get 5-10%, implying a payback period of 10-20 years.

If you would like to place banner ads on this blog, PR copywriting for your real estate business or blog posts and articles and copywriting help such as direct mail, Radio Ads, then please contact Anitha Lakshminarayanan a freelance journalist cum writer at 050-1845628 or 050-4627856

 

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DSI announces the appointment of Group Chief Executive Officer

Image (16) [Dubai, UAE – March 29 2018] – The Board of Directors of Drake & Scull International PJSC (“DSI” or the “Company”), a regional leader in engineering and construction services, announced the appointment of Dr Fadi Feghali as the Group Chief Executive Officer, with effect from 1st of April 2018. Dr Fadi currently manages DSI’s international business units since joining the company in October 2017, and he will be overseeing all aspects of strategy and business implementation for the global DSI Group of companies in his new role.

Dr Fadi is widely renowned as an EPC industry veteran in the region and currently manages DSI’s global subsidiaries and operations. Dr Fadi previously served as the Managing Director of Al Husam Group.  He holds a Bachelors and Masters in Civil Engineering from the Free University of Brussels, as well as a PhD in Civil Engineering from Heriot-Watt University, UK. Dr Fadi has over 30 years of experience in the management and development of multinational companies and mega projects, with expertise in environmental engineering across a broad spectrum of different sectors ranging from energy, utility, infrastructure to oil & gas.

Commenting on the appointment, Engr. Abdulla Atatreh, Chairman of DSI PJSC stated: “We are pleased to have Dr Fadi Feghali as the Group Chief Executive Officer for DSI. He is an esteemed expert in the EPC sector and has a stellar track record of leading the operations for complex and large-scale engineering projects in the region.

 We believe that our comprehensive organizational overhaul and structural reforms have reached a significant milestone with the appointment of Dr Fadi Feghali, who worked closely with the Board of Directors and the new management team that was appointed in October 2017 and played an important role in our rigorous assessment of DSI’s global businesses and their challenges.

 His performance driven vision, global experience, and business acumen will prove vital for DSI and we are confident that under his leadership, the company will tap into its vast potential of historic legacy and regional presence and leverage them to create a sustainable pipeline of growth-oriented outcomes.”

 Dr. Fadi said: “I thank DSI’s Board of Directors and the global management team for entrusting me with the honor of leading the DSI Group as the Group CEO.  DSI PJSC is a dynamic organization with a rich history that spans more than 135 years across Europe, MENA, and Asia, with an unmatched legacy of values, excellence, innovation, and a work ethic that remains second to none. In our five decades in the region, we have constantly evolved to meet the demands of an ever-changing business environment.  I am enthusiastic about the opportunities to build upon our base of engineering skills, global experience, and the region’s most talented and motivated workforce, as we aim to deliver improved results and generate value for our investors and partners.”

Archinnova to fully automate Mohammed Bin Rashid Housing Establishment’s Application Delivery lifecycle  

 

MRHE is the first government entity to implement end-to-end, best of breed ‘DevOps Solution’ to achieve Agile status in practice, culture, and technology

Dubai, September 14th, 2017 – Archinnova, a leading innovative business technology consulting and implementation firm, has been selected by the Mohammed Bin Rashid Housing Establishment (MRHE) to help fully automate its Application Delivery Lifecycle. The company has been appointed by MRHE as a system integrator and is tasked with educating, implementing and supporting the installation and application of the ‘DevOps Solution.’ The move has positioned MRHE among the first government entities in the Middle East region to implement end-to-end, best in breed ‘DevOps Solution,’ which in turn can help in achieving Agile software development status in practice, culture, and technology.

The MRHE vision is aimed towards providing a house for every citizen, thereby ensuring happiness and helping them improve their quality of life. As part of their efforts to achieve this vision, MRHE is looking to reinforce their housing policies and set a strategic goal of providing around 15,000 versatile housing services by the end of 2020. Utilising DevOps will allow MRHE to enable an internal IT organization to allow the deployment of newer e-services to its customers; encourage better interaction with customers and increase service quality, especially in handing client feedback, complaints and suggestions with high efficiency and productivity.

MRHE believes that client satisfaction is an essential aspect to their success and the adoption and utilization of DevOps will prove to be highly advantageous for them–as it urges both development and operations teams to closely work together in order to drive in a better understanding of their respective processes and challenges. In line with this, Archinova has detailed a holistic approach to MRHE’s software development lifecycle (SDLC), which translates to improved service delivery and faster recovery of any service failure. Archinova has further expressed its commitment towards delivering the deepest integration into application Lifecycle & Continuous Delivery for MRHE–positioning itself as an integral part of the DevOps toolchain to automate quality checks, proactively identify performance issues, and ensure confident delivery without sacrificing quality.

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“Dubai is currently in the process of transformation, integration and innovation, with happiness being the core of its success–an integral element to the vision of His Highness (H.H.) Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai,” said Talal Ahmed Ali, IT Director, MRHE. “Our mission is to achieve stability and drive in development through the provision of diverse and easy housing solutions to UAE nationals. We have selected Archinnova to help fully automate our processes and develop a complete Agile culture that covers all levels of management. Our partnership with Archinnova gives MRHE the confidence and preparedness to respond to changing business requirements and customer needs that will result in customer satisfaction and higher levels of happiness.”

For the MRHE IT team, the implementation of Archinnova’s DevOps solution will include continuous software delivery, easy to manage applications and a faster resolution to problems and issues. Utilization of ‘DevOps’ can drive close to 67 per cent reduction in resource demands on the application release team and process; around 75 per cent the relative hours needed in repairing defects per environment and post an 82 per cent reduction in application deployment time. Meanwhile, the implementation of the solution will also drive in a cultural edge to MRHE operations like happier and more productive teams, increased employee engagement and the presence of more professional development opportunities. Metrics wise, its use will see 200 times more deployments, 24 times faster recovery and three times lower change failure rates.

“Archinnova is proud to bring and implement the ‘DevOps Solution’ for MRHE, which encourages innovation through collaboration. The successful collaboration between development, operations and business teams remains the formula for success for a best customer experience. The implementation of ‘DevOps Solution’ offers faster delivery of features, a more stable operating environment, improved communication and more time to innovate,” concluded Diyaa Zebian, CEO, Archinnova.

The integration of DevOps into MRHE’s operations and culture is expected to enhance the organization’s overall performance, drive improvements in its software delivery chain in order to help achieve higher levels of happiness among customers.  DevOps has become the latest trend for many corporate giants including Amazon, Facebook, Target, and Adobe–who have all become believers. In fact, Amazon has recently adopted a ‘You build it, you own it’ culture where developers of a service are responsible for its operations throughout the lifecycle.

 

USD 32 billion worth of urban construction projects being tendered in region

 GCC’s robust construction activities offer more growth prospects for Brazilian investors, says Arab-Brazilian Chamber of Commerce

UAE, September 13, 2017 – More new business opportunities in the GCC recently opened up for Brazilian investors with USD 32 billion worth of large-scale urban construction projects now being tendered in the region, according to the Arab-Brazilian Chamber of Commerce (ABCC).

The ABCC, which aims to foster economic, cultural, and tourism ties between Arabs and Brazilians, said that the report recently released by Dubai-based market research firm BNC Network is strong proof that the GCC remains a promising market for Brazilian businessmen. The report reveals that a total of 801 urban construction projects with a combined value of USD 32 billion is currently being tendered in the region. The same report also forecasts that the value of regional construction contracts will hit the USD 50.9-billion mark by the end of 2017.

“The year 2017 is proving to be an exciting time for vibrant and robust Arab-Brazilian ties. The urban construction projects as reported by BNC are another opportunity worth exploring by investors from the vast South American country, which will pave the way for more avenues to further flourish the relations between the Gulf countries and Brazil.We are closely coordinating with our partners to see how we can further facilitate the flow of information and knowledge between interested parties to maximize new prospects in the rapidly increasing construction activities in the region,” said Dr Michel Alaby, Secretary General and CEO, ABCC.

BNC attributes the ‘tremendous’ construction projects in the region to mega-events such as Dubai Expo 2020, as well as oil price stabilization, economic diversification policies, and higher living standards. It expects the total contract value to expand by 29 per cent to USD 65.6 billion in 2018, and by 1 per cent to USD 66 billion in 2019.

It also notes that the UAE remains the region’s construction industry hub, citing substantial contracts sealed during the second quarter of 2017 in the country such as the Deira Island Mall in Dubai; City Center – Al Zahia in Sharjah; and residential complexes Yas Acres in Abu Dhabi. A contract covering Danat Al Lawzi in Bahrain was successfully closed as well during the same period, the report adds.Image (8)

Drake & Scull’s new Board of Directors elects Abdulla Atatreh as Group Chairman & Ahmed Saeed Al Hamiri as Vice Chairman  

UAE, September 13, 2017 – Drake & Scull International PJSC, a regional market leader in engineering and construction services, has announced that its newly-elected Board Members have convened for the first time. The Board ratified a series of procedural decisions necessary for the company to conduct business as required and chose new committee members from among its ranks. The second General Assembly Meeting convened earlier on the 9th of September 2017 and ratified the appointment of the new Board Members and elected additional Members to fill the vacancies resulting from the resignation of the former Board Members.

During today’s meeting, the Board elected Abdulla Atatreh as the new Chairman; Independent Member Ahmed Saeed Al Hamiri as Vice Chairman; and Abdulla Fareed Algurg as new Board Member. Algurg replaces the vacant seat of Majid Al Ghurair who resigned during the recent General Assembly Meeting held on the 9th of September 2017. At the executive level, Board Member Mohammed Atatreh was appointed as DSI’s new Managing Director. Members of DSI’s Audit, Nomination, Remuneration, and Investment Committees and the Secretary of the Board of Directors have been appointed as well.

During its inaugural meeting, the Board emphasized the completion of DSI’s capital restructuring program as a top priority to boost liquidity and stabilize the business. It also concurred on establishing a clear strategy for recovery and growth that will capitalize on the Group’s healthy project pipeline, industry stature, and the bullish industry outlook for the region.

Abdulla Atatreh, Chairman, Drake & Scull International PJSC, said: “The first official act of the new Board of Directors is to position the Company for new growth by establishing and following strict governance standards across all operating sectors to ensure consistent transparency, control, and quality. We have also strategically appointed people that embody our vision of renewed growth for DSI. We want to adopt the right corporate mindset to ensure the swift and efficient completion of the Group’s turnaround strategy, which is currently in the final stages of the capital restructuring phase. We assure our partners, customers and all our other stakeholders that we will steer the DSI towards new and exciting opportunities to advance the Group’s industry leadership.”

The Board’s immediate goals include further organizational restructuring to achieve higher levels of efficiency, synergy, and resilience. It is currently planning additional executive appointments to support DSI’s comprehensive turnaround strategy.

 

Realopedia launches online booking platform for developers at Cityscape 2017 in Dubai

E-marketplace a gateway for investors to book premium real estate projects with one click of a finger

UAE, September 12, 2017 – Realopedia, the global real estate e-marketplace established in Dubai, has launched its pioneering online booking platform for developers at the ongoing 16th Cityscape Global conference and exhibition at the Dubai World Trade Centre. The move is another reflection of the growing convergence and incorporation of property technology (PropTech) into the dynamic real estate market in Dubai, the UAE, and globally.

Realopedia, which is located at Stand No. S3A01 of the event’s venue, presents developers with substantial business growth opportunities via the newly launched online booking platform, in addition to offering them solutions to reach an extensive range of investors and customers.

As part of the Realopedia e-marketplace, registered developers within their set jurisdictions or areas can upload their inventory with an option to harness 3D and virtual reality (VR) technologies to give their prospective investors and customers a lifelike experience and a sense of what it is like to explore the actual units. These premium real estate projects can now be easily booked by property buyers – be it for their location, price, and features – with the click of a finger. The online booking platform has effectively made the cutting-edge e-marketplace a gateway for investors to quickly and conveniently reserve a property of their choice.

Laura Choueri, CEO and Founder, Realopedia, said: “We are excited to introduce this global platform to our developers as a new addition to our portfolio of technology-focused services. The launch comes at an opportune time when property buyers are using next-generation tools to access useful data. More and more tech-savvy investors are harnessing the full potential of contemporary and advanced tools to search for and purchase property according to their liking and taste instead of just relying heavily on traditional methods for information.”

“The online booking platform for developers is an innovative offering that will bring investors’ experience to the next level. In our online community, buyers can connect with registered agents and brokers, as well as reach out to agents who can represent them globally under DPAP, the ‘Developers Preferred Agents Program’,” she added.

Realopedia will introduce its ‘Make an Offer’ scheme for real estate agents, whose property is registered as per the regulations of Dubai Land Department and the Real Estate Regulatory Agency (RERA) in Dubai or official regulatory bodies in their respective countries. The exciting new concept is set to go live next month and is expected to give agents a big push in terms of promoting properties they have on offer.

Technology is increasingly being adopted within the UAE real estate market, with investors making use of digital tools to help them arrive at an informed decision. A latest HSBC survey shows that UAE home buyers go online to look for available properties (72 per cent); check the value of their current home (67 per cent); learn about taxes and regulations (65 per cent): research where to live (65 per cent), and explore prospective home prices (64 per cent). According to Choueri, this key trend of technology integration is only the beginning.

Realopedia has recently formed a first-of-a-kind strategic alliance with the region’s leading e-commerce site Souq.com, a subsidiary of Amazon.com, leveraging on its global accessibility and digital expertise to expand market reach for all its stakeholders and online users.

Drake & Scull announces H1 2016 Financial Results

UAE, 15 August 2016 – Drake & Scull International PJSC (DSI), a regional leader in engineering, procurement, construction and commissioning, reported its financial results for the first half of the fiscal year ended 30 June 2016.

Operational progress in Q2 2016 continued to follow the trends observed in Q1 2016, with a noted improvement in revenue and operational performance on newly awarded projects within the core UAE market and a noticeable decline in the rest of the region. Furthermore, a growing order intake in the Rail & Infrastructure as well as Oil & Gas divisions in Qatar and Iraq has helped offset a slowdown in activity in key markets such as the Kingdom of Saudi Arabia (KSA).

H1 2016 Highlights

• Extended slowdown in the construction sector has impacted H1 2016 financials adversely
• Revenue of AED 1.83 billion in H1 2016
• Net loss for the period of AED 216 million mainly attributed to project cancellations and added one-off provisions
• Total backlog stands at AED 9.37 billion as of 30th June 2016
• New project wins in Rail & Infrastructure and Oil & Gas sectors amounting to AED 570 million
• Promising outlook for the company in the GCC rail sector
• Ongoing measures to strengthen the balance sheet, optimize the capital structure, boost working capital, reduce overheads and improve operational efficiency
• Continued progress in disposal of non-core assets
• Operational restructuring resulted in QoQ SG&A savings of AED 14.2 million

Q2 2016 Highlights

• Q2 2016 revenue of AED 805 million
• Q2 2016 net loss of AED 225 million
• Total impact of project cancellations, additional one-off provisions and adjustments taken in Q2 2016 amount to AED 192 million
• Total value of project awards secured in Q2 2016 is AED 227 million

DSI reported a year on year decline of 23 % in revenue, which stood at AED 1.83 billion in H1 2016 as compared to AED 2.39 billion achieved in H1 2015. The fall in revenue is due to the significant contraction and prolonged volatility in the regional construction sector, the slow progress on ongoing projects, a decline in new project awards and adjustments across key markets in the GCC.

The net loss for H1 2016 was AED 216 million as compared to a net profit of AED 34 million in H1 2015. The loss is specifically attributable to project cancellations and more one-off provisions taken in light of the challenges in the sector. A majority of these provisions emanate from Saudi Arabia, with the total impact on the bottom line amounting to AED 192 million. These cancellations were executed by clients on individual one-off projects with minimal bearing on DSI’s ability to continue operations in Saudi Arabia and other markets.

DSI’s ongoing projects order backlog stood at AED 9.37 billion as of 30 June 2016, as compared to AED 13.24 billion in H1 2015. The decline in the projects’ backlog reflects the adjustments carried out in Q2 2016 pertinent to project cancellations in KSA.

Despite the slowdown in the regional project awards, DSI managed to secure AED 570 million worth of new project awards year to date including the AED 343 million Doha Metro Depot and Stabilising Yards contract as well as the AED 227 million Zubair Oil Field project in Iraq. These key wins further reinforce the company’s strategic decision to concentrate on sector-specific, core engineering projects with high operating margins.

DSI has also remained on track with its cost-reduction programme which will improve operational efficiency and cut overheads. The company has implemented a number of measures and initiatives to optimize its capital structure, including the sale of non-core assets to generate cash and improve liquidity. The cost-reduction programme is progressing on schedule and is expected to realize significant cost savings by the end of 2016.

Commenting on the results, Khaldoun Tabari, CEO and Vice Chairman of Drake & Scull International PJSC, said: “Our financial results have been impacted due to the substantial provisions for project delays and cancellations over the last six months, brought on by clients principally based in Saudi Arabia. We believe that these developments show the considerable challenges we have faced across the region due to a very challenging macro-economic environment.

We are in the process of embarking on a new strategy to reposition ourselves as a leader in the market. We will also initiate fundamental changes to our group and leadership structure which will be supplemented by a reorganization and realignment of senior management roles as part of our efforts to enhance and streamline our operative framework.

Despite the challenges, our business remains operationally and financially robust. Due to our longstanding partnership with major international and local banks, we continue to retain strong lines of credit and secured access to funding to deliver our ongoing projects backlog. We remain committed and focused on running efficient, low-cost and sustainable and cash generating operations and are confident about the medium- and long-term prospects of the regional industry.”