Professional Documents
Culture Documents
he emirates commitment to
sustainable development as
part of Abu Dhabi Plan 2030
came under the spotlight yesterday
as leaders in the environmental field
spoke at day two of the Real Estate
Finance & Investment Conference,
on the subject of whether demand
for green projects was still topping
the regional development agenda.
Daniel Hajjar, VP and Gulf regional
manager for HOK, said that the onus
was on regional governments to pass
legislation to support sustainable
practices, while Jo Pestel, safety,
health and environmental consultant
for EC Harris in Abu Dhabi said that
for some, the credit crunch was being
used as a convenient excuse to place
green initiatives on the back burner.
In Abu Dhabi, the new guidelines
being set in line with the objectives of
Plan 2030, will have a huge effect on
standards of construction, she added.
Doug Kelbaugh, executive director
design and planning for Dubai-based
master developer Limitless, echoed
the comments of his fellow panelists,
calling for the implementation
of dynamic measures. The built
environment accounts for 50 percent
of the energy pie and is the biggest
consumer of electricity, and producer
of half the worlds greenhouse gases
more than industry and transportation.
We need education, awareness and
legislation but these issues cant be
solved in one generation, he said.
Former ecologist turned
development professional Richard
Kingston, Middle East operations
director, Cyril Sweett, also picked up
on the importance of the education
process, but noted the need for an
end-user driven approach in order
to translate back the potential ROI
benefits to developers/investors.
According to Mike Cairney, partner,
EC Harris, the importance of support at
the very highest level of government
is critical to the future of the regional
sustainability movement. Developers
are going to open up their eyes to this,
and support what their political leaders
are saying. At the client feasibility
stage they are already asking us
the right questions, he remarked.
The panels consensus on the
way forward for sustainability
in the current economic climate
centered on the development of
mixed-use communities. One
building does not make a sustainable
community, commented Hajjar.
Limitless Kelbaugh agreed, adding:
By constructing buildings that are
10 percent smaller, we can save
money to invest in environmental
technologies and strategies.
Looking to the future, Hajjar
referenced the use of taxation and
incentives in other emerging and
mature markets as a prime vehicle
to stimulate change. The Gulf
market has not yet developed to a
level where you have the carrot and
stick approach to sustainability. Its
not on the table yet, however I do
believe that this will happen here.
Summing up sentiment on the
part of the sustainability community,
EC Harris Cairney listed cost in
use and proactive maintenance
among current challenges, while his
colleague Jo Pestel reiterated the
need for sustainable measures to
be mandated for pipeline projects.
Richard Kingston was more blunt.
We need to look at ourselves first, as
we are part of the problem. Sustainable
technology is complex, theres a lot
of design involved, it takes time to
develop and this leads to a natural
resistance from within the industry.
Kelbaugh also pushed home the
point that density alone is not enough
to merit a sustainable tag. Cities
that have survived through time
have all been mixed-use. Specialised
cities simply do not work, he said.
We need to retrofit existing areas
dedicated to specialised land use and
mix it up, make them less pure, in
order to make them sustainable.
In a separate panel session, Gurjit
Singh, chief property development
officer, Sorouh, underlined the
importance of continuing green
practices after the design and
construction stages. It is important
not to isolate sustainability efforts
in the construction and design
stages the management and
occupants of a building need to
understand the philosophy of
sustainability. At the end of the day,
you dont need a green building to
carry out green management.
By adopting sustainable practice,
not just in terms of construction
and design, you are helping to
lower operating costs, which are
passed to the occupants.
C
olliers Internationals GCC
Overview Report, released
at Cityscape, has identified a
fundamental change to the regional
market dynamic with professional
investors becoming the dominant
drivers of transactional activity.
Explaining the contraction
in Gulf real estate markets Ian
Albert, regional director Colliers
International, said: In the last six
months we have witnessed the
switch from speculators to end-
users and occupiers, and now to
professional investors as the main
type of purchaser in these markets.
The consequence is the increasing
importance of investor yield in the
market place.
The reports findings indicate
that the extent of the impact of the
global crisis is primarily dependent
on each markets exposure to
global economic drivers and the
level of speculation that occurred
prior to the price peak last year.
Colliers analysis concludes that
while the price/yield gap remains
a dominant issue in Gulf markets,
the establishment of price stability
for real estate assets remains a
long term probability. STAND 2E40
Waving the green flag
GCC sees
shift in market
dynamic
Sustainabilityprofessionals reinforce Plan 2030 vision and debate the key
challenges and opportunities keeping the green agenda front of mind
Colliers International report
released this week
T H E O F F I C I A L S H O W D A I L Y
1 9 2 2 A P R I L , 2 0 0 9
www. ci tyscape-magazi ne. com
3
CONTENTS
IN ABU DHABI, THE
NEW GUIDELINES
BEING SET IN LINE
WITH THE OBJECTIVES
OF PLAN 2030, WILL
HAVE A HUGE EFFECT
ON STANDARDS OF
CONSTRUCTION
Jo Pestel
EC Harris
07 Cityscape: welcome
Insight into the weeks
networking and social events
08 Industry: exhibitor news
Latest updates from
the showfloor and key
market destinations
16 Insight: speaker profiles
Leading industry experts share
their market insights
18 Line-up: conference
Analysis and debate on the
industrys hot topics
21 Comment: day two
Round-up of the action from
the showfloor
22 Region: Qatar/Kuwait focus
Evaluating the health of the
GCCs mega projects
23 Viewpoint: Herron
Todd White
Setting the value chain
in motion
Interacting with mass transit: Department of Transport stand
Come home to Al Odaid, the property
development arm of the country's largest
holding company, Al Ghaith holdings.
Some prestigious projects adding that
special touch of luxury and opulence to
skylines of Abu Dhabi stand testimony to
this fact. Burj Al Jewn, Palm Towers and
Al Odaid Beach Residence. right at the
heart of the city.
P.O. Box 109960, Abu Dhabi,
Tel +971 2 627 1322, Fax: +971 2 627 1622
Three years ago, Manazel Real Estate pioneered the vision of becoming the leading real estate developer for the
middle-income segment in the UAE and other selected countries in the region. This year, Manazel is proudly
delivering Dunes Village, Phase One of Al Reef Villas and Prestige Towers projects respectively. Manazel is
determined to further its vision in line with Abu Dhabis 2030 plan, by developing more projects for families,
individuals and businesses who appreciate affordable quality living.
Manazel Real Estate Building Communities Together
Where Dreams Come to Life
7 I WELCOME I SHOW
CITYSCAPE OFFICIAL SHOW DAILY ABU DHABI 2009
Published by:
NICHOLAS PUBLISHING
INTERNATIONAL
P.O. Box 500573,
Dubai Media City, Dubai, UAE
Tel: +971 4 3671867
Fax: +971 4 3908022
www.cityscape-magazine.com
Editor Claire Malcolm
Deputy Editor Oliver Ephgrave
Although every effort is made to
ensure the accuracy of information
contained in Cityscape, NPI cannot
be held responsible for any errors
or inaccuracies contained within the
publication. All information contained in
Cityscape is under copyright to NPI and
cannot be reproduced or transmitted
in any form, without first obtaining
written permission fromthe publisher.
Printed by
Emirates Printing Press LLC, Dubai
HEADLINESPONSOR PLATINUMSPONSORS
GOLDSPONSORS SILVERSPONSORS INTERNATIONAL
BROADCASTPARTNER
REGIONAL
BROADCASTPARTNER
ASSOCIATESPONSOR
INVESTMENTSPONSOR
IF YOU HAVE BREAKING NEWS, VISIT OUR SHOW DAILIES OFFICE AT STAND 9A30 IN HALL 9
O
n behalf of the exhibition and
events team, may I welcome
you to day three of Cityscape
Abu Dhabi. As expected, the first two
days were extremely busy and we are
looking forward to an equally reward-
ing remaining two days.
Due to the immense size of the
exhibition and its various high-profile
conferences, Cityscape Abu Dhabi
presents a challenge to many par-
ticipants and attendees to meet and
network with prospective business
partners, industry colleagues and
peers. To assist in creating network-
ing opportunities, my team and I play
an increasingly important role at
each Cityscape, in creating a range of
special events and activities designed
to get groups of people to meet and
network through a variety of differ-
ent activities.
Through the creation of unique net-
working opportunities in and around
the show itself, we thereby ensure
that every attendee is able to network
and develop future business oppor-
tunities with like-minded individuals
and organisations. The key to success
is to deliver a series of memorable
events which promote and encourage
personal interaction between attend-
ees. This requires detailed and careful
planning to ensure that we meet and
exceed the aims and objectives of the
profile of Cityscape attendees.
When developing these events for
2009, we have tried to place the con-
sumer as a key performer within all
of the activities. This was aptly dem-
onstrated when this years showcase
got off to a flying start on April 18
th
,
with the traditional curtain-raiser, the
Cityscape Abu Dhabi Golf Classic. Once
again, the golf tournament proved to
be a great success with over 120 real
estate industry professionals compet-
ing in two-player teams for a range
of prizes and the accolade of being
named Cityscape Abu Dhabi Golf Clas-
sic champions.
This years tournament, held once
more at the acclaimed Abu Dhabi
National Golf Club, was sponsored by
Meedar Real Estate who approached
the event with great enthusiasm and
excitement to ensure that tournament
participants had a truly memorable and
enjoyable day. A resounding success,
the tournament is set to remain a key
feature of Cityscape Abu Dhabis port-
folio of special events and activities.
On Sunday 19
th
April, we held the
second of our series of special events,
the 2009 Cityscape Awards for Real
Estate in the Middle East. This event is
designed to bring together the Middle
East real estate industry for one night
of recognition and celebration.
Over the last few years the City-
scape Awards for Real Estate in the
Middle East have developed into the
worlds premier recognition vehicle
for emerging markets. The awards
seek to recognise and reward real
estate projects, developments and
architects that have shown outstand-
ing designs, performance, vision and
achievement in the Middle East. The
awards, and seals of distinction, were
presented at an elaborate and lav-
ish gala dinner held at the Emirates
Palace hotel. Over 600 high-calibre
professionals from across the region
attended to celebrate and acknowl-
edge those industry figureheads
who have surpassed the already
high standards of the industry.
Tonight, we have the Cityscape Abu
Dhabi Cocktail Reception. This event
has been designed to bring together
key participants of Cityscape for an
evening of fun and excitement. Held
in the specially-designed and naturally
beautiful setting of the Shangri-la
hotels beach gardens, this event will
once again be the highlight of the
weeks social calendar.
So, by creating an integrated pro-
gramme of special events and activi-
ties, attendees to Cityscape Abu Dhabi
have the opportunity to not only
benefit from attending the exhibition,
and various conferences, but also to
network and meet future business
associates at a variety of other net-
working events.
On behalf of my colleagues, I wish
you a productive and rewarding week
with us at Cityscape Abu Dhabi 2009.
Ken Jamieson
Chief Xperience Officer
IIR Middle East
WELCOME
TO CITYSCAPE
ABU DHABI
2009
Published by:
NICHOLAS PUBLISHING
INTERNATIONAL
P.O. Box 500573,
Dubai Media City, Dubai, UAE
Tel: +971 4 3671867
Fax: +971 4 3908022
www.cityscape-magazine.com
Editor Claire Malcolm
Deputy Editor Oliver Ephgrave
Although every effort is made to
ensure the accuracy of information
contained in Cityscape, NPI cannot
be held responsible for any errors
or inaccuracies contained within the
publication. All information contained in
Cityscape is under copyright to NPI and
cannot be reproduced or transmitted
in any form, without first obtaining
written permission fromthe publisher.
Printed by
Emirates Printing Press LLC, Dubai
HEADLINESPONSOR PLATINUMSPONSORS
GOLDSPONSORS SILVERSPONSORS INTERNATIONAL
BROADCASTPARTNER
REGIONAL
BROADCASTPARTNER
ASSOCIATESPONSOR
INVESTMENTSPONSOR
IF YOU HAVE BREAKING NEWS, VISIT OUR SHOW DAILIES OFFICE AT STAND 9A30 IN HALL 9
8 I INDUSTRY I NEWS
CITYSCAPE OFFICIAL SHOW DAILY ABU DHABI 2009
AL RAYAN
INVESTMENT
TARGETS
GREEN TECH
SYSTEM TO REDUCE ENERGY
DEMANDS
BY 85 PERCENT
A
bu Dhabis Al Rayan Investment
has announced a joint venture
with Australia-based Green Pre-
cast Systems and Technologies which will
see a push towards more sustainable
projects.
The deal will result in Al Rayan imple-
menting Green Precasts unique 3D mon-
olithic modular system across all its UAE
projects. Commenting on the announce-
ment, Fardan Al-Fardan, chairman of
the board of Al Rayan Investment, said:
In our role as a premier organisation in Abu
Dhabi we are committed to supporting the
aspirations of our government in deliver-
ing environmentally friendly and sustainable
technologies to the UAE, upholding the drive
for a green future.
In Green Precast we believe we have
found the ideal partner to complete this
aim. Its technology enables significant sav-
ings to be made with up to 80 percent less
labour required to deliver projects up to 70
percent faster than conventional methods.
Its developments are 30 percent stronger
and save up to 90 percent on the ongoing
maintenance costs.
The system is a combination of solutions
and products, including the UV-IR reflec-
tor that helps to save up to 50 percent on
running costs; water technology, which in
some cases can save up to 100 percent on
irrigation or toilet flushing through the grey
water treatment of a household; and Ecob-
ulb technology which can reduce energy
bills and usage by 85 percent.
The combination of all these technologies
is the worlds leading green precast system.
As a result, we fully expect Green Precast to
become one of the pre-eminent choices for
major developments in the region in the near
future, he added.
Al Rayan Investment was the first com-
pany to select this new technology for its
projects, and signed a contract worth AED
450 million with Green Precast Systems and
Technologies to deliver accommodation for
25,000peopleby2010. GreenPrecast isalso
a member of the Emirates Green Building
Council, and will be creating up to 2,000 jobs
in the UAE. STAND 5D20
Consultant
Q&A
Richard Kingston,
Head of Middle East Operations,
Cyril Sweett, UAE
How has the global economic crisis
impacted your business?
Our business strategy is still on track, how-
ever the economic crisis has seen increased
demand for certain services such as dispute
resolution and facilities management.
What are the major challenges for the
industry in the short to mid-term?
The ability to obtain credit on sustainable
terms will be the greatest challenge.
What lessons do you think the industry
will learn from this experience?
That sound and solid advice from well-
respected consultants will give them confi-
dence going forward.
Do global investors look to regions where
fiscal stimuli are being initiated as good
indicators of future opportunities/markets?
Fiscal stimuli are important but investors
require confidence from the consumers
and end-users to enable developments
to proceed.
What are your expectations from this
years event?
This is an opportunity to showcase our
facilities management business stream
and to further develop relationships in
Saudi Arabia, Iraq, Kuwait and Jordan.
What do you think will be the hot topics at
this years event?
Sustainability advice and the sustainable
master planning of new developments,
a relatively new concept in Middle East
development. We advise governments and
other prominent stakeholders, working to
cost, scrutinise and facilitate the evolution
of planning policy.
Will you be attending other Cityscape
events in 2009?
As visitors we will be attending Cityscape
Dubai, Saudi Arabia and India in 2009.
WE ARE COMMITTED TO
SUPPORTING THE
ASPIRATIONS OF OUR
GOVERNMENT IN
DELIVERING
ENVIRONMENTALLY
FRIENDLY AND
SUSTAINABLE
TECHNOLOGIES TO
THE UAE
Fardan Al-Fardan
Al Rayan Investment
POSITIVE
TAKE ON
MARKET
DOWNTURN
RECESSION COULD
GENERATE KEY MARKET
IMPROVEMENTS CLAIMS
ARCHITECT
T
omas Gulisek, principal at
Dubai-based architectural con-
sultancy Burt Hill, said yester-
day that the current market changes,
which have included the closure of a
number of small and inexperienced
developers, are healthy and should be
looked upon positively.
Everybody needs to adjust and
realise that things cannot go back
to what they were. The market has
changed, but that means new oppor-
tunities, he said.
Thepropertyindustryhadbecome
crazy and exuberant. We were seeing
lots of unreasonable things people
who lacked experience stepping into
construction and project develop-
ment, not just in the UAE, but across
the world. Many of these people have
now gone and thats a good thing,
because the industry will become
healthier and more stable.
Looking ahead, Gulisek believes
developers, builders and investors
need to follow their business plan
more closely. They need to regroup,
look at what their core business is
and focus on this, he added. They
also need to control their cash flow
more carefully. From this situation we
should see more sophisticated inves-
tors and developers.
Gulisek also considers Eastern
Europe a promising emerging market
with a great deal of resources and
talent, stating that the region has the
ability to grow quickly and in a sus-
tainable way. STAND 4A01
EARLY BIRD
COMPLETION FOR
BUROOJ PROPERTIES
TWO CAPITAL PROJECTS AHEAD OF SCHEDULE
B
urooj Properties, the real estate arm of Abu Dhabi Islamic Bank
(ADIB), has announced that two of its Abu Dhabi projects are pro-
gressing rapidly and project delivery is expected to take place by
end 2009, ahead of the previously scheduled date of mid-2010.
The two projects set for early delivery are Al Ghurm Gardens, com-
prising 80 villas, and Burooj Views, a 40-storey residential tower at the
entrance of Al Reem Island.
Adel Ahmed Al Zarouni, managing director of Burooj Properties, stated
that the company is moving steadily ahead to accomplish all of its projects.
Burooj Properties strong financial base coupled with well-planned and
considered strategies to target the Abu Dhabi market are just two of the
key elements in our successful growth.
Burooj Properties will use its presence at Cityscape to highlight its cur-
rent projects being developed in the UAE. Al Zarouni added: Our presence
at this important event helps us showcase our portfolio and projected
plans before a number of regional and international visitors.
STAND 8H10
United Arab Emirates Vice President, Prime Minister and Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum, made an extended visit to
Cityscape Abu Dhabi yesterday, where he was briefed on the progress of multi-billion dollar development projects across the Emirates and further afield.
The opportunities
continue to
GROW
on SAADIYAT ISLAND
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10 I INDUSTRY I NEWS
CITYSCAPE OFFICIAL SHOW DAILY ABU DHABI 2009
NEWS BRIEFS
ADNAN ASWAD ENGINEERING CONSULTANTS
Iraq-based Adnan Aswad Engineering
Consultants, founded in 1970, specialises
in urban development, housing and town
planning, as well as cultural, recreational,
commercial and industrial projects.
Stand 1A27
DURRAT AL BAHRAIN
Located on the south coast of Bahrain, this
21-square-kilometre master development has
been created across a cluster of 15 islands.
Stand 6A20
WAHA LAND
Waha Land is currently focusing on
Abu Dhabis industrial and logistics
requirements, and is planning an integrated
complex with light industrial, warehousing,
and storage facilities along with
middle-income housing and amenities.
Stand 6C10
ARAB ENGINEERING BUREAU
Founded in 1966, and headed by
award-winning local architect IbrahimMohamed
Jaidah, Arab Engineering Bureau (AEB)
is a Qatar-based multi-disciplinary
architectural and engineering firm.
Stand 2D40
ARCHITECTURAL CONSULTING GROUP (ACG)
Established in Abu Dhabi in 1976 - with offices
in Al Ain, Dubai, Oman, Bahrain and Qatar
the company specialises in architectural
design, project management, and construction
administration for all types of projects.
Stand 7B40
HASSELL
Founded in Australia in 1938, HASSELL
is an international network of design
studios structured around the key disciplines
of architecture, interior design,
landscape architecture and planning.
Stand 8G24
NEWDESIGN ARCHITECTURE (NDA)
NDA is an architecture and strategic
design consulting firmfromFrance, with
offices in China and the Gulf region. It
specialises in waterfront developments
and sustainable design solutions.
Stand 7H36
ASEEL FINANCE
Established in February 2007, Aseel Finance
is an Abu-Dhabi based private joint stock
company which provides a comprehensive
range of Shariah-compliant finance services.
Stand 8F40
LLJ PROPERTY
As one of Abu Dhabis leading real estate
agencies, LLJ Property offers a comprehensive
schedule of property services.
Stand 8B30
HYDRA PROPERTIES
Hydra Properties was established in
2006 in Abu Dhabi, inspired by the vision
of its CEO Dr Suleiman Al Fahim
to be trendsetter and provider of
unprecedented development concepts.
Stand 5A20
SUNUPCG
As one of the earliest professional CG
companies in China, Sunupcg focuses on
providing a high-quality and reliable 3D
application and technology development service.
Stand 8B38
VIVID CONSULTANTS
Vivid Consultants specialises in 3D interactive
design development, conceptual design,
visualisation and animation for the architecture,
property and real estate industries.
Stand 8G28
DAVIS LANGDON
With some 5,360 staff in 105 offices
worldwide, Davis Langdon is a leading global
construction consultancy, providing managed
solutions for clients investing in
infrastructure, property and construction.
Stand 4A30
OASE
Singapore-based OASE is a world
leader in the field of fountain technology,
working closely with clients to provide
design and build and consultancy services for
fountains and interactive water features.
Stand 7G20
DIMENSION CONCEPT
Dimension Concept has a network covering
the MENA region. Its services
include architecture, 2D and 3D innovation
production for various architectural drawings,
and the production of films for projects.
Stand 7F45
KONSTRUCT WEST PARTNERS (KWP)
KWP offers innovative faade consultancy
and architectural production services with
several international offices.
Stand 6A01
T
wo years on from the compa-
nys official launch at the inaugu-
ral Cityscape Abu Dhabi in 2007,
locally-based property developer
Tamouh is reinforcing its commitment
to the market at the 2009 event.
Tamouh is a primary developer of
a number of key projects including
Marina Square, the City of Lights, Fan-
tasy Island, Meena Hotel and Towers
andtheRoyal Groupheadquarters. The
company is also partly involved in the
development of two blocks within the
Danet Abu Dhabi project.
COO Dr Daniele Seraphim, said:
Through this years event we want to
Developer
Q&A
Naser Ali Al-Attar
CEO, Mayadeen, Kuwait
How has the global economic crisis impacted
your business?
Confirming Mayadeens credibility, against
common market practice, we took the
decision to start promoting Aurora during
Cityscape Abu Dhabi 2009. We think that
Cityscape will give a clear indication of the
direction of the Abu Dhabi market in par-
ticular, and the UAE market in general. The
management teamat Mayadeen has been
carefully monitoring the nature of the finan-
cial slowdown across the regions property
sector. For the time being we will emphasise
a simple, clear marketing message build-
ing credibility. During a crisis, people return to
brands they know and trust and trust will
be a key theme as well as value for money.
Are emerging markets still an attractive
option for global investors?
The outlook for emerging markets is gen-
erally positive, but there are risks related
to the correction. Many still struggle with
inflationary pressures, unsustainable credit
expansion, poor infrastructure and inad-
equate governance. But perhaps the biggest
threat comes fromeconomic difficulties in
the USA and the EU, which together account
for over half of all global consumer demand.
Although the downturn there has helped to
fuel trade and inward investment in emerg-
ing markets, a severe downturn or reces-
sion in coming years would inevitably drag
down emerging market growth too. It is
only sensible to analyse all opportunities in
detail, whether they are in existing or emerg-
ing markets. The current economic cycle
happens to be on a downswing, but this will
change in due course as we work through
the current economic challenges. The trick
will be to ensure that you maintain your
intelligence and research sources to enable
you to be in the best shape to exploit the
opportunities nowrevealing themselves for
the future.
What are the major challenges for the
industry in the short to mid-term?
The financials and lack of liquidity develop-
ers find it difficult in securing financing for
both project financing and end-user finance.
Governments should attract investors
through providing long-termprojects.
Profitability and lack of investor confidence
are also current key challenges. However,
the current drop in real estate does not
seemlong-lasting. Although at present the
property prices have eased a bit, the forth-
coming slowdown in construction will reduce
supply, which in turn, would drive up the
prices again.
Do you think that the emerging Gulf
region will see a faster recovery than
other established markets?
We believe that although the region may
yet experience further pressure, even pain,
in the short-term, the mediumto long-term
growth story remains robust. The economic
structure of the region is fundamentally
different to those of developed and other
emerging markets and we believe that
GCC economies have sufficient cushions
to sustain economic growth, although con-
strained until the world economy picks up.
What lessons do you think the industry
will learn fromthis experience?
The lesson is for governments, which must
provide proper infrastructure able to sup-
port the projects before attracting investors,
and the banks, which need to provide and
preserve liquidity to support the countys
growth. The prime lesson to be learnt is
the old-fashioned one of remembering to
operate within your means, to be prudent in
managing risk and to play to your strengths.
Finally, it must be acknowledged that
certain basic rules of a market economy
did not really work in the financial markets
i.e. the link between opportunity and risk.
We need better supervision, and possibly
limits to passing on risks. Precautions need
to be taken against excess, because peo-
ple are always in danger of being blinded by
greed. The link between risk and opportunity,
which produces responsibility, needs to be
maintained. We need greater transparency
for the effects of individual action and values
to function.
Do global investors look to regions where
fiscal stimuli are being initiated as good
indicators of potentially sound future
investment opportunities/markets?
Increasing numbers of GCC investors are
targeting Asia (India and China in particular)
to diversify their investment portfolio. GCC
investors are also turning their attention
to opportunities in North Africa. This ten-
dency is being driven by recent progress in
liberalisation and privatisation among high-
potential countries such as Morocco, Algeria,
Libya and Egypt. Given the focus on infra-
structure development in these countries,
sectors such as real estate, banking and
telecomare of prime interest. Investors are
looking for regions that have high demand
on their products or services, high purchas-
ing power, easy borrowing restrictions, and
regions with a stable political environment.
Is there any particular government
legislation you believe could jump-start
market confidence?
It is important to protect foreign investors
and support companies that are facing
hard situations in terms of market liquidity
(especially the stock market), eliminate the
hard restrictions on borrowing frombanks
and loosen financial constraints to ease
liquidity shortfalls and reap rewards.
Is it more important than ever to network
with your peers at events such as Cityscape?
Networking is a vital component of any
businessmans planning. To have the oppor-
tunity to do so in the focused environment
of an event of this stature is enormously
useful and beneficial.
What do you think will be the hot topics at
this years event?
Lack of finance (end-user and projects);
pricing (could the slowdown create a price
war among developers?); and governmen-
tal support will be the key topics for dis-
cussion at this years event.
INCREASING
NUMBERS OF GCC
INVESTORS ARE
TARGETING ASIA
(INDIA AND CHINA
IN PARTICULAR)
TO DIVERSIFY
THEIR INVESTMENT
PORTFOLIO
Naser Ali Al-Attar
Mayadeen
12 I INDUSTRY I NEWS
CITYSCAPE OFFICIAL SHOW DAILY ABU DHABI 2009
NEWS BRIEFS
EVENTSCAPE INC
Eventscape is an award-winning solution-
based customfabricator working with
architects and designers on commercial, retail,
hospitality and institutional projects worldwide.
Stand 7C30
GAGGENAU
With a specialism in the built-in sector
for kitchen appliances, Gaggenau has
an uncompromising approach to function
and design.
Stand 5B01
VEKO ESTATE
With an experienced teamof construction,
sales, marketing and support, Veko Estate
strives to make the purchase of Bulgarian
property a simple and streamlined process.
Stand 7F37
AL SHUROOQ ENGINEERING CONSULTANT
Based in Dubai, Al Shurooq is a multi-faceted
architectural and design firmwith additional
offices in Egypt, India and Abu Dhabi.
It boasts a diverse portfolio of small to
large-scale projects.
Stand 7G21
MINA AL FAJER REAL ESTATE LLC
Mina Al Fajer Real Estate LLC is a project
developer specialising in premiumproperty
real estate projects, such as the mixed-use
Mina Al Fajer development in Fujairah.
Stand 8F01
UNITED GULF PROPERTIES
The United Gulf Properties Real Estate
Company specialises in devising solutions and
marketing plans in the real estate sector.
Stand 8D20
BURO HAPPOLD CONSULTING ENGINEERS
LIMITED
A multi-disciplinary international practice,
Buro Happold has over 30 years experience
of urban planning, sustainable construction and
environmental consultancy in the Middle East.
Stand 4E40
VOORSANGER ARCHITECTS PC
Voorsanger Architects PC specialises in
the design of cultural and urban space,
transportation design and unique, custom
residential architecture.
Stand 1C05
CREATIVE KINGDOMINC.
A USA-based architectural thematic design
firm, established in 1997, Creative Kingdom
Inc has emerged as one of the worlds leading
design companies in its field.
Stand 5A05
DESIMONE CONSULTING ENGINEERS
Founded in 1969, with seven offices worldwide,
Desimone Consulting Engineers provides
structural engineering services to architects,
owners and developers.
Stand 8A31
RWDI CONSULTING ENGINEERS
RWDI is a consulting firmoffering an array of
engineering and scientific capabilities to help
designers create high-performance buildings
and structures for all the worlds climates.
Stand 7A38
EVENTUS CAPITAL LIMITED
An offshore investment management
company, Eventus Capital focuses on the
management and distribution of investor funds
through real estate and other opportunities.
Stand 3D09
SWOT DESIGN GROUP SDN BHD
Swot acts as a bridge between brand and
design. It creates absolute brands, ranging from
retail stores to name cards, by addressing the
gap between strategy and creativity.
Stand 7E49
DSIGN VERTTI KIVI & CO
Since 1993 Dsign Vertti Kivi & Co has
completed more than 350 projects and
designed over 500,000 square metres of
different interiors.
Stand 1C01
CHUN WO DEVELOPMENT HOLDINGS LIMITED
Smartwill Asia limited, an Abu Dhabi property
developer wholly owned by Chun Wo
Development Holdings Limited, is showcasing
its ReemDiamond project.
Stand AA30
ARCHIAL GROUP PLC
The Archial Group aims to deliver intelligent
architectural solutions to a wide international
client base, by combining creativity with
commercial success.
Stand 7F42
PYRY PLC
Poland-based Pyrys services span the entire
lifecycle of real estate - fromarchitectural
design and construction management to
consulting and engineering.
Stand 7A45
Investor
Q&A
Guy Perry,
President and Founder
IN-VI Investment Vision, Brazil
How has the global economic crisis impacted
your strategic direction?
The global economic crisis has meant that
we are focusing on unique projects. These
projects are much less affected by the
downturn. Those in the business of building
just based on square metres may find 2009
a rough ride.
Are emerging markets still an attractive
option for global investors?
Emerging markets like Brazil are low risk and
offer outstanding value right now. Slovakia
has the privilege of Central European growth
coupled with the stability of being in the
Euro zone.
What are the major challenges for the indus-
try in the short to mid-term?
Financing is the key issue, as well as confi-
dence, as this may hamper the rapid devel-
opment of even quality projects.
What lessons do you think the industry will
learn fromthis experience?
I have seen crises in Houston in the 80s,
Tokyo at the beginning of the 90s and Lon-
don in the mid 90s. People tend to have
short memories. When plans for develop-
ment are overly confident and optimistic,
shortly thereafter is always a cooling off
period I have never seen an exception to
this. We will see more caution and reason for
the next five years or so.
Do global investors look to regions where
fiscal stimuli are being initiated as good indi-
cators of potentially sound future invest-
ment opportunities/markets?
Fiscal stimuli can be helpful to attract oppor-
tunists, but they will never replace a sound
market and stable transparent government
in the long-term.
Is there any particular government legisla-
tion that you believe could jump-start mar-
ket confidence?
Transparency and the support of best devel-
opment and community building practices
are what make good long-termvalue. Gov-
ernments need to support these approaches,
but need the wherewithal to assist the
coherent implementation of these practices
on a country-wide scale.
Is it more important than ever to network
with your peers at Cityscape events?
This is the optimumtime to attend City-
scape, not only for networking and opportu-
nities but to get a handle on the pulse of the
industry in one of the worlds most impor-
tant regions.
What are your expectations fromthis
years event?
We wish to attract partners to our projects
in Brazil and Slovakia. We believe that many
investor/developers share our point of view
that times of crisis are precisely the right
time to move ahead with carefully thought-
out projects in certain markets.
JORDAN: A
MAGNET FOR
DEVELOPMENT
ZONING IN ON INVESTMENT
OPPORTUNITIES
T
he Development Zones Commission
in Jordan will use Cityscape Abu Dhabi
as an opportunity to highlight the suc-
cesses of its three development zones in
the country and the strong potential of the
Jordan market.
Saleh Kilani, chief commissioner for the
Development Zones Commission, said:
As a commission we are aiming at creat-
ing awareness and generating interest in
the development zone model and legisla-
tion currently being applied in Jordan. With
our master developers in Mafraq, Irbid and
Maan on board, we hope to make a tremen-
dous impact in showcasing the zones and the
exciting opportunities that are available for
potential investors.
The King Hussein Bin Talal Development
Area (KHBTDA) in Mafraq comprises four
clusters covering Industrial, Transit and
Logistics, Community Services and Utilities,
and Housing. In Maan, the Maan Develop-
ment Area (MDA) offers investment oppor-
tunities within the Industrial Park, Residential
Community, Skills Development Center and
Hajj Oasis. The third zone is Irbids Devel-
opment Area (IDA) with a focus on knowl-
edge-based development Information and
Communication Technology, Health Care and
Research and Development.
The commission is also preparing to launch
additional development zones. Kilani added:
We are studying areas right now, and we
will announce two or three new develop-
ments this year.
Kilani saidthat Jordanisinastrongposition:
We have not been hit as badly as the rest of
theworld. Wehaveadvantages over therest
of the Gulf, in terms of human resources and
marketingfromthegovernment. Tourismisa
bigdriver, andoverall thereis ahugepotential
in the country. Many Jordanians are buying
apartments and multinational companies are
coming here. We have a conservative central
bank which has helped us immensely. Hope-
fully Jordan will be able to pass through this
economic crisis. STAND 2A20
THE CURRENT
GLOBAL ECONOMIC
CLIMATE HAS MEANT
THAT REAL ESTATE
DEVELOPERS HAVE
TO ADOPT A MORE
SUSTAINABLE AND
RESPONSIBLE
BUSINESS APPROACH
Yousef Al-Nowais
Al Maabar
18 I PROGRAMME I CONFERENCE
CITYSCAPE OFFICIAL SHOW DAILY ABU DHABI 2009
Real Estate Finance
& Investment Conference
Day 3
TUESDAY 21
th
APRIL 2009
10.00 Chairmans Opening Address
10.15 Opening Keynote Panel: The Middle Estate Real Estate Market:
In These Troubled Times, Is It A Safe Haven?
Nader Mohamed, MD, EMAAR
Richard Draycott, COO, Goodman Sorouh JV
Jamal Itani, CEO, Abdali
Paul Devonshire, MD, Pramerica Property Funds AG
Nick Smith, CEO, Te Wave, Muscat
Why Invest In.
Global Investors In
Legal Issues In
Funding Options In.
11.00 Saudi Arabia
Khalid Al Gahtani, President And CEO, Rikaz
12.00 Kuwait
Duncan Gray, Head, Kuwait Operations, DTZ Middle East
Mohammad Al Ali, VP - Investment Advisory, Alaman
13.00 Bahrain
Bob Addison, Director and Country Manager Bahrain, DTZ
Redha Rajab, CEO, Tashyeed Properties Company B.S.C.
14.00 Qatar
Stephen Barter, Senior Executive Director , Head of Real Estate
Investments, Te First Investor
Mahmoud Noureldin, GM, Tadmur
15.00 Oman
Nick Smith, CEO, Te Wave, Muscat
Abdulrehman Barham, CEO, Al Madina Real Estate Co.
Abid Junaid, Executive Director, ETA Star Property Developers
16.00 Jordan
Dr Khalid Al Wazani, CEO, Darrat Jordan
Ahmad Armoush, Chairman, Madaen Al Nour
H.E. Eng Imad Fakhoury, CEO, Aqaba Development
17.00 End Of Middle East Summit Day
Cityscape Abu Dhabi Cocktail Party
Discuss your key issues on Real Estate Finance & Investment with your
fellow delegates and speakers at this informal networking evening.
19:30 Courtesy coaches
22:30 Courtesy coaches Cocktail Party
Middle East Summit
E x p e r t s i n L E D Me d i a S o l u t i o n s
Agbar Tower - Dynami c Medi aLi ght i ng i nst al l at i on
Ar chi t ect : Jean Nouvel - Li ght i ng Desi gner : Yann Ker sal
4. 700 RGB l i ght i ng uni t s - Bar cel ona, Spai n
CITILED - HEAD OFFICE
paris@citiled.com
7, rue Nicolas Flamel
75004 PARIS, FRANCE
(T) + 33 1 49 28 5000
(F) + 33 1 49 28 5001
CITILED - MIDDLE EAST
dubai@citiled.com
P.O. Box 262746
DUBAI, U.A.E.
(T) + 971 4 813 7835
(F) + 971 4 813 7814
www.citiled.com
Benoy
Benoyis an internationallyacclaimed award-winning firm of Architects, Masterplanners, Interior
and Graphic Designers, with a dynamic team designing exciting schemes around the world.
Benoyhas built an enviable reputation as one of the worlds leading designers of retail and
leisure destinations bycombining creative flair with commercial awareness. The Team
consistentlydelivers inventive solutions to complex challenges that remain cost-effective
and commerciallyviable, whilst providing inspiring environments that enhance the overall
experience of the end-user.
Whether working on one of the worlds largest mixed-use schemes in Abu Dhabi, as concept
architects on a state-of-the-art retail and residential scheme in Singapore or as interior designers
refurbishing a retail mall in the UK , Benoys philosophyis simple creativityand viabilityare
not mutuallyexclusive. Theyare vital and complementaryelements of the BenoyDifference.
BenoyAbu Dhabi is perfectlypositioned to deliver design solutions across the region and
beyond. For further details, or to arrange a meeting, contact the Abu Dhabi design studio,
one of our Team, or visit us on stand 4B31.
Visit Benoy on Stand 4B31
Design Architecture M asterplanning Interiors G raphics
N ic k L a m b
Managing Director
M + 44 (0) 7970 123 066
E nick.lamb@ benoy.com
M a h ro o f A c h ta r
Associate Director
M + 971 ( 50) 220 7079
E mahroof.achtar@ benoy.com
D a n Win n in g
Marketing Manager
M + 44 (0) 7970 246 360
E dan.winning@ benoy.com
B e n o y A b u D h a b i
ABN Amro Building, Mezzanine 2
Salam Street
PO Box 110598
Abu Dhabi, UAE
T + 971 2 403 9444
F + 971 2 677 6879
E ad@ benoy.com
www.benoy.com
St Davids 2, Cardiff, UK
Yas Mall and Ferrari World, Yas Island, Abu Dhabi, UAE ION Orchard, Singapore
21 I SHOW I COMMENT
CITYSCAPE OFFICIAL SHOW DAILY ABU DHABI 2009
TALKING CITYSCAPE
DAY TWO SAW A LARGE NUMBER OF TRADE VISITORS DESCEND ON
ADNEC FOR SERIOUS DISCUSSIONS WITH REAL ESTATE INDUSTRY
LEADERS, AS CITYSCAPE ABU DHABI CONTINUED TO MAP OUT THE
FUTURE TRENDS OF DEVELOPMENT IN THE REGION
INGRID NARANJO
Director of Investment Relations
& Head of Abu Dhabi branch
Centuria Capital
Ive concentrated on the conferences
this year and its been a great opportu-
nity to network. Everyone is focusing
on advertising their products and serv-
ices and building their brand. As a real
estate asset manager, our focus has
been on advising on finance and being
cost-efficient when developing, but
that is starting to change.
MICHAEL ALBERS
Vice President
Walker Parking Consultants
Im a parking consultant so Im here to
introduce myself to developers and
architects in the Gulf. Our company is
US-based, where they drive similar size
cars to here, so we understand their
parking issues. We do have clients here
already, but were looking to boost our
contact base. We help architects by
planning car parks that make the most
efficient use of the space available.
NATHALIE MACKIN
Managing Consultant
PA Consulting Group
Cityscape gives you a sense of whats
new in the market. It also offers an
excellent opportunity to network,
which is incredibly important, especially
in the current economic climate. People
sell through relationships. You need to
meet more contacts to get the same
amount of business as there are fewer
people in the market.
BRAD BATCHELLER
Director of Public Relations
& Corporate Branding
KEO
Im happy to see some of the bigger
projects in Abu Dhabi on display and
our clients are happy with our pres-
ence. We are here to show our support
of those clients. Our goals and objec-
tives are to keep our presence as a
leader in the region and maintain our
image in the market. Cityscape is the
biggest event for us on a marketing
and public relations front. Our market-
ing budget is less this year, but this is
one show that has made the cut.
GEORGE BALALES
Director-In-Charge UAE
NDY Middle East
Were here to show support for the
region and to make more contacts in
the Middle East. NDY is a consultancy
engineering firm and we provide serv-
ices to the construction industry. This
is my first time at Cityscape Abu Dhabi.
Im looking for new leads, making con-
tacts and identifying companies with
projects on the go.
ANTONIO TAN
Registered Architect
Planning Services International
(Asia)
Ive found that theres a good variety
and mix of providers in the areas of
development and service provision.
This is my first time at Cityscape Abu
Dhabi, but Ive been to the region sev-
eral times. Ive come to know some of
the developers through this trip and
also through visits to other Gulf coun-
tries, so were hoping to build on that.
We have offices in Hong Kong, Shang-
hai and hopefully Abu Dhabi soon.
KEVIN LEAHY
Director
Broadway Malyan
This years show is going extremely
well. The Hydra stand has really
caught my eye. It is designed on two
levels and its pretty wacky! The Aldar
stand with the Al Raha development
is great too. You walk inside and can
see and learn about lots of different
developments. Its nice to see them
all in one place.
CHARLOTTE JOHN, MRICS
Recruitment Manager
Cobalt
All the stands this year are impressive, but the Urban Planning Council was par-
ticularly interesting with details of the Abu Dhabi Plan 2030 - Ive never seen any-
thing like it. The Masdar and Sorouh stands were also impressive. Sorouh had a
Q&A session, which was great. In these challenging times, its good to hear what
other people think and to gauge opinion.
MOHAMMAD TAWANAEE
Managing Director
Consolidated Project Management
We are here to market our product
and promote our services we are a
project management company. This
is the first time weve exhibited at
Cityscape Abu Dhabi, but weve now
arranged to go to Cityscape events in
Dubai and Jeddah. Obviously we hope
to boost business by being here. With
the current state of the economy, its
very important for us to be at an event
such as this. Up until now, it wasnt
needed as we always had repeat cus-
tomers, but this is a good opportunity
for us to bring in new business.
22 I REGION I FOCUS
CITYSCAPE OFFICIAL SHOW DAILY ABU DHABI 2009
Kuwait
According to a report last month by
Jones Lang LaSalle, prices in Kuwait have
fallen by between 40 to 50 percent for
land, and up to 30 percent for built prod-
uct. Kuwaiti developer Al Mazaya Hold-
ing is working on several projects in the
country, and managing director and CEO
Khalid Esbaitah reveals that precautions
have been taken in light of the current
market conditions.
He says: All of Mazayas properties
are carefully selected to be located in
prime locations, but the current decline
in prices in the property sector has
made Al Mazaya take some precau-
tionary measures that will render the
company and its projects safe from
current and future market fluctuations.
Yet despite the market conditions,
Kuwait is continuing with its ambi-
tious plans to build some of the larg-
est developments in the region. The
US$27.3 billion Sabah Al Ahmad Town-
ship has been under construction since
December 2008 and is expected to be
completed by March 2015. Developed
by Kuwait Public Authority For Hous-
ing Welfare, the project covers an area
of 40 square kilometres with 11,000
residential units, as well as 45 schools,
70 mosques, 15 hospitals and clinics, a
football stadium, cinemas, hotels and
government buildings. In November
2008, a US$250 million infrastructure
contract was signed with Mubarak
Al-Hajraf Est. Co.
In January 2009 it was announced
that work on the US$946 million Al
Hamra Complex in Kuwait City by Al
Hamra Real Estate is on track, and the
project is expected to be completed as
scheduled, by August 2010. The com-
mercial complex will include a 412-me-
tre high tower, which will be the tallest
building in Kuwait when completed.
WS Atkins is designing the US$1
billion Dancing Towers project in Sharq
developed by Al Shahed Real Estate
Co which covers 5,600 square
metres and contains a 63-storey
tower with offices and a 50-storey
tower with a five-star hotel.
This year, Kuwait University plans
to start construction work on the New
University City in Shadadiyah which will
take six years to build. The US$8.5 bil-
lion campus will accommodate 40,000
people, and will feature nine colleges
for women, nine colleges for men and a
600-bed hospital.
But by far the countrys largest real
estate project indeed one of the
largest in the region is the proposed
US$132 billion Madinat Al Hareer
(City of Silk) which will accommodate
700,000 people. Construction work is
scheduled to start by 2012 and it will
take 25 years to complete the 250-
square-kilometre city. Madinat Al
Hareer developed by Kuwait Ministry
of Public Works (MPW), Ajial Real
Estate Company and Tamdeen Real
Estate Company will be centred on a
1,001-metre high skyscraper, Mubarak
Tower, and will comprise various
zones including cultural, film, media,
industrial business, sports and leisure,
environment and health cities.
Qatar
As the richest state per capita in the
GCC, Qatar boasts a suitably grand
portfolio of mega projects in the pipe-
line. However, according to Jones Lang
LaSalle, the looming oversupply in the
residential and office markets will chal-
lenge the market in the short-term.
In the capital city of Doha, Qatari Diar
is developing the US$1.3 billion Lusail
project. The scheme will have 18 differ-
ent districts with hotels, villas, apart-
ments, over 300,000 square metres
of retail space, a large lagoon with two
marinas, golf courses, schools, parks,
as well as mosques, medical and enter-
tainment facilities and a light railway rail
service. In February it was announced
that the main contract for infrastruc-
ture packages five and six will be
awarded in the first quarter of 2009.
Work is underway on Qatar Enter-
tainment City, a US$3 billion project by
Majid Al Futtaim Group of Companies,
Qatari Diar Real Estate Investment
Company and Abu Dhabi Investment
House (ADIH). The one-million-square-
metre project involves a variety of lei-
sure facilities and resorts for individual
and families, including four five-star
hotels, as well as restaurants, gardens,
theme parks and theatres. The scheme
is scheduled to be completed by 2015.
Also under construction is Al
Waab City, by Nasser Bin Khaled and
Sons Group (NBKS) and Al Waab
Development Company. Covering a
total of 1.37 million square metres, and
scheduled for completion by 2010,
the US$1.4 billion project will contain
several hundred villas and apartments,
88,000 square metres of retail space
and a 300-room hotel.
One of the countrys most notable
mega projects is The Pearl-Qatar,
an artificial island spanning nearly
four million square metres with over
32 kilometres of new coastline. The
islands master developer is United
Development Company, while sub-
developers are undertaking individual
projects. The Land Development
Company is developing a US$550
million complex of seven 20-storey
residential towers in the Porto Arabia
area, while Al-Darwish United Real
Estate Investment Co is developing the
US$100 million United Tower, which is
due for completion this month.
Meanwhile, Qatari developer BARWA
is undertaking a number of projects in
the country. Khalid Al Delaimi, president
of development, reveals that so far,
all of the projects are on track. He
says: BARWA projects remain on
schedule for completion as originally
stated. The first phase of BARWA
Housing Program is complete and was
handed over as scheduled in February
2009, while the first phase of BARWA
Al Baraha Truck Park, was recently
inaugurated. Certainly BARWA is not
stepping back from its commitments.
There is a high demand for luxury
property in Qatar, according to Al
Delaimi: While luxury property devel-
opment in many countries is depend-
ent on international investors, many
of whom have been affected by the
financial crisis, in Qatar it is the Qatari
nationals and high-end expatriates
who are the major buyers in develop-
ments such as The Pearl-Qatar. Qatar
is rapidly becoming the hotspot for
luxury property in the Middle East.
Al Delaimi believes that the countrys
real estate strategy is well prepared
to cope with the downturn, and
adds: Lets be honest, the region is
experiencing signs of slowdown
something which several countries
within the region didnt plan for. Yet
Qatar is able to digest the crisis, and it
is strategically planning for alternative
solutions to cope with the situation.
Development in Qatar, while growing
at an incredible rate, has always been
controlled wisely by the government
and leading developers.
Project data from Proleads
Development
Update
KUWAIT
AND QATAR
WHILE LUXURY
PROPERTY
DEVELOPMENT IN
MANY COUNTRIES IS
DEPENDENT ON
INTERNATIONAL
INVESTORS, MANY
OF WHOM HAVE
BEEN AFFECTED BY
THE FINANCIAL
CRISIS, IN QATAR IT
IS THE QATARI
NATIONALS AND
HIGH-END
EXPATRIATES WHO
ARE THE MAJOR
BUYERS IN
DEVELOPMENTS
SUCH AS THE
PEARL-QATAR.
QATAR IS RAPIDLY
BECOMING THE
HOTSPOT FOR
LUXURY PROPERTY
IN THE MIDDLE EAST
Khalid Al Delaimi
BARWA
1
2
3
4
5
6
1/2/3 The Pearl-Qatar 4/5/6 Madinat Al Hareer, Kuwait
23 I INDUSTRY I VIEWPOINT
CITYSCAPE OFFICIAL SHOW DAILY ABU DHABI 2009
A
s Cityscape Abu Dhabi works
through what is proving to be a
pivotal four days for the UAE
property sector, it kind of feels like
youre waiting in an out-patients clinic
for a check-up following an operation
six months ago.
Uncertainty has been hanging over
the property market like a dark blan-
ket of smog since October last year,
and this years exhibition and confer-
ence will help shed light on the general
health of the market, and gauge how it
is progressing in terms of recovery.
These top-line indicators will come
from a small number of property
developers who will actually be show-
casing bona fide new developments
at this years event. Going against the
grain of suspended projects and other
means of rationalisation, we should
not underestimate the significance of
announcements about new develop-
ments planned for construction.
Make no mistake, this Cityscape
exhibition is an entirely different beast
from previous events which saw
projects being launched that were, in
hindsight, financially untenable. That
was how crazy things got, before the
market was hit with a huge dose of
reality late last year. Any new devel-
opments launched in the future, start-
ing with Cityscape Abu Dhabi, will be
underpinned by transparency, due dili-
gence and financial viability. Why? Fail-
ure to adhere to these simple principles
in this new era of maturity forced upon
the UAE property market will put you
out of business.
With the days of our inboxes groan-
ing under the weight of pre-launches
and high-profile announcements long
gone, the Abu Dhabi property market
hasnt seen a major launch for several
months and the current price of off-
plan property is a nervous unknown.
Negative equity is a reality which many
who bought off-plan at the height of
the market are facing. The question
is, to what extent? This uncertainty is
damaging one of the key drivers of real
estate confidence and also affect-
ing the rebound of a market rocked.
Its time for developers to begin
confronting the awkward and chal-
lenging market value question, and
the sooner they start to do this then
the sooner the market will be able to
return to some sort of normality. The
only way that the market will redis-
cover the value of property is through
launches that will find the meeting
point between sales and purchases.
The entire property industry, from
developers to financial institutions to
investors, has been forced to reconsider
its respective roles and responsibili-
ties, and the dynamic and relationship
between all three has been redefined.
The days of developers valuing their
own developments, selling off-plan,
commencing construction and then
securing end-user finance at some
later point down the line are over. That
was the type of unsustainable environ-
ment and model that sees us where
we are at today.
Once the norm, it will surely nowbe
unthinkable for developers to launch real
estate developments without first hav-
ing end-user finance in place. This will
enforce a level of due diligence in the
UAE marketplace that has, up until now,
been afforded too little respect. Trust
is another important dynamic in real
estate, and trust is built on transparency.
This transparency will be brought
about through the increasing impor-
tance and intervention of independ-
ent and expert valuations across all
aspects of real estate. Especially rel-
evant in the current climate, independ-
ent valuations will play a critical role
through consultation and feasibility
studies for developers who are hold-
ing distressed assets. These develop-
ers are now trying to recalculate and
establish the true value of their portfo-
lio, in order to ensure that their financial
models are accurate and remain viable.
Against a backdrop of a flying market,
some small to mid-size developers in
the region made their own estimations
as to the value of their developments.
These estimations have been inaccu-
rately reported on their asset sheets
and now demand urgent attention.
In what is now a radically differ-
ent environment, developers will seek
impartial valuations of their develop-
ments, and then banks will also per-
form their own series of independent
assessments before they consider
offering end-user finance. The good
news for investors, and the market
as a whole, is that these critical fun-
damentals of property will occur right
from the outset, instead of mid-cycle,
which carries the intrinsic risk of leav-
ing all parties dangerously exposed.
In effect, Abu Dhabi will have to tie its
shoelaces before starting to walk or
run, as may have been the case.
The mindset of everyone, but
especially master developers of new
projects, will have a big part to play to
help bring about change. So far, most
of the action taken by developers
across the board can be categorised as
reactive (suspending projects, chang-
ing payment plans, payment holidays,
reduction in prices). These measures
were all necessary, of course, but they
also convey an unmistakable under-
tone that something is wrong which
there was, and undeniably is. But now
that the market has moved its way
through six unsettling months, if devel-
opers start adopting an approach that
is direct and positive, this will slowly
help to stabilise confidence.
The other key ingredient that really
ties up everything on a rock solid
foundation is government regulation.
Although the Dubai property market
might be in considerably worse shape
than Abu Dhabi, Dubai and RERA is
much further down the line in terms
of regulation of the property mar-
ket. How quickly Abu Dhabi is able to
progress plans for regulation will be
linked to the depth of the trough and
the angle of the line that plots the
speed at which the market bounces
back which it will. There are some
very good opportunities for astute
investors to make exceptional returns
in the current climate. However, the
real financial powerhouses that can
pour tremendous sums of money into
the market will remain risk-averse
until government regulation is formal-
ised and offers real security.
There is still pain ahead, and there
are many factors at play, but keeping
an eye on which developers are doing
what over Cityscape Abu Dhabi could
well indicate that the next phase of
recovery has begun.
IN WHAT IS NOW
A RADICALLY
DIFFERENT
ENVIRONMENT,
DEVELOPERS WILL
SEEK IMPARTIAL
VALUATIONS
OF THEIR
DEVELOPMENTS
Mark Saunokonoko