According to reports in the Middle East press, there has been a dramatic rise in the number of businesses setting up in the Ras Al Khaimah Free Zone.

Booming economy is good news for Ras Al Khaimah real estate investors

During the first half of 2008, 847 new companies registered in the Free Zone, the total number of firms operating from the zone now stands at 4,773 bringing a combined total investment of more than 10 billion (AED).

Chief Executive of the Ras Al Khaimah Free Zone Authority, Osama Al-Omari is quoted as saying: “The first half of the 2008 has witnessed the a record rise in the number of international companies which registered at the zone” He added firms are benefiting from the logistic services we provide for our clients and investors in the zone”.

Mr Al-Omari who is also the Secretary General of the World Economic Processing Zones Association continued: “The next three years are expected to witness an even bigger increase in the number of companies registering to operate from RAK”.

Arabian Sands Comment: This news comes as no surprise to those who have invested in Ras Al Khaimah real estate. The superbly positioned La Hoya Bay Residence is on Al Marjan Island and only a short drive from the RAK Free Zone; La Hoya Bay is seen by many as a prime buy-to-let investment opportunity due to its attractive waterfront location which has become a favourite residential area for business people working in the Free Zone.

Ras Al Khaimah Property Report 29th July 2008

Egypt’s real estate market activity is increasing at the rate of 40%, according to Prime Minister Ahmed Nazif, who expects more growth in the market in the coming months. Property is increasingly open to foreign investors and tourists.

Egypt property: A rip-roaring success

Speaking at the opening of the fifth Inter Build conference and exhibition in Cairo last week, Prime Minister Nazif said that also the building industry has seen a boom with year-on-year growth currently at 15%.

“Under a new building law, owners of apartment buildings will be forced to carry out maintenance works and consequently promote building maintenance services,” the Prime Minister announced.

The new law, meant to regulate construction, demolition and maintenance works of buildings in urban and rural areas, would certainly have positive effects on the building market, Nazif added.

Also for foreign investors, Egypt’s property market has been rapidly opening up. The introduction of mortgage facilities for foreigners is now imminent, and there are no domestic inheritance or capital gains taxes for foreigners engaged in Egyptian properties.

The boom in the Egypt property market follows a liberalisation in investment and property laws, but is also a major consequence of Egypt’s steady growth as a tourist destination.

Especially the country’s newly built Red Sea resorts, with relatively short flights from Europe and pleasant temperatures all year round, have attracted an ever-growing stream of tourist-related real estate and other construction projects.

As properties in classic holiday resorts such as Spain and France have turned expensive, the market has turned to new countries such as Turkey, which has been flooded by property buyers for years. But as also Turkey grows more expensive and the best properties are grabbed, European attention is now also directed towards Egypt, Morocco and Cape Verde.

However, the real estate markets in all these three countries still are in an emerging phase, representing some risks for buyers. Many serious property agents in Europe are now marketing Egyptian properties aggressively, often exaggerating the “certain boom to come” and the security of the investment.

Source: www.bi-me.com

Khoie Properties, the real estate arm of the $2 billion UAE-based Khoie Group, was one of the early movers in the Ras Al Khaimah property development market when the company announced the Dh1bn La Hoya Bay in Al Marjan Island development.

Ras Al Khaimah: The next Dubai?

In addition, Khoie Properties has gone on to acquire land worth Dh750 million across Dubai and Abu Dhabi, and will announce Dh3bn worth of projects in the two emirates by the end of this year.

The group is also branching out into the financial sector with a subsidiary called Khoie Finance, which will be registered at the Dubai International Financial Centre (DIFC).

In an interview with Emirates Business, Frank Khoie, Chief Executive of Khoie Properties and the Group, said: “The paper work is still underway and we hope the final approvals from DIFC will come through by early 2009.

“We already have in-house financing options but we are looking to set up something on the lines of what finance companies in Dubai are offering.”

Beside Khoie Properties, other group subsidiaries include Khoie Constructions, Khoie Trading, Khoie Industries and Khoie Education. Excerpts:

Give us a construction update on La Hoya Bay?

There are five elements in the project: La Hoya Bay Residences, La Hoya Bay Business Village, La Hoya Bay Regency, La Hoya Bay Hotels and Apartments and La Hoya Bay Marina and Yacht Club.

The first comprises seven towers and 1400 residential apartments. We are nearing 20 per cent completion of the project and have currently finished the first level on the residences. Our target is to complete the project by March 2009.

La Hoya Bay Business Village is a half-a-million square feet of office and retail space and is scheduled for completion by March 2009 as well.

La Hoya Bay Marina and Yacht Club are in the design stages currently. We plan to provide 500 berths for boats in front of the hotel. It will be completed by December 2009.

The La Hoya Bay Regency, an old European-style village development, will be completed by December 2010.

The La Hoya Bay Hotels and Apartments will be a three-cluster development connected to each other, offering 200 five star hotel units along with 700 serviced apartments. It will be completed by June 2010.

You are announcing projects in Dubai and Abu Dhabi but is your focus largely on Ras Al Khaimah?

Not really. We will look for opportunities in Dubai, Abu Dhabi and Ras Al Khaimah equally. These are our three main focus areas. Ideally, our business sense tells us to go where the opportunity is.

What are the key features of the La Hoya Bay development?

On La Hoya Bay alone, we are building 5000 residential units, half-a-million square feet of office space, a total of 200 five star hotel rooms plus a cluster of approximately 5,000 serviced apartments.

Further, we are taking the logistics of transportation within the development very seriously. We will buy 50 taxi boats and 50 cars, which will be used to provide chauffer-driven private taxi service.

Each of our subsidiary companies that are providing infrastructure within La Hoya Bay has invested a minimum Dh1m on just the infrastructure of the project.

The office space within the project will function as a free zone. An investor buying office space in La Hoya Bay will automatically get a free zone licence. We obtained the free zone permit from the authorities at a very early stage of the project and to date in Ras Al Khaimah the La Hoya Bay is the only exclusive free zone development.

What are your plans for Abu Dhabi and Dubai?

We have a land bank worth Dh750m across Dubai and Abu Dhabi. Whatever we build there will be community-oriented developments along the lines of La Hoya Bay. We will not simply build one single tower and call it a property development. We will announce projects worth Dh2.5bn in Dubai alone and Dh1bn in Abu Dhabi by end of this year.

With the high inflation in the country, which is expected to rise further in 2009, have your profit margins come down?

Unquestionably, there is a certain amount of pressure being built up by the constantly rising oil prices and the competition. Our property prices are appreciating 10 per cent every month.

The net profits average 15 to 20 per cent. We don’t think that is low as our volume of sales is high. As an example, for someone with a turnover of Dh100,000, earning a revenue of Dh15,000 could be a small amount. But for someone making sales of Dh1bn or Dh2bn, the total value of the revenue earned at a similar profit percentage will be substantial. Even after the rising costs that we need to consider, our net profit at 15 to 20 per cent is still high in global terms.

What is Ras Al Khaimah doing regarding infrastructure development?

Infrastructure development implies taking care of four essential factors – water, power, sewerage system and telecommunications. As far as telecommunications are concerned, Etisalat is doing a good job. For water and sewage, there are desalination plants already in place and a sewerage system is being worked out. As regards power, the issue is that it takes time to build power stations. Power shortages are everywhere, even in Dubai, but we know massive power plants are being constructed all over the UAE. Until they are completed there are always alternative generators to provide power. On the La Hoya Bay project, we don’t have a sub-station set up, but power will either come directly from Ras Al Khaimah Investment Authority (Rakia) or the Federal Electricity and Water Authority. In addition, there will be one sub-station of 400 megawatts in order to provide sufficient power to the entire island.

Where is Ras Al Khaimah heading at the moment?

Prices in Ras Al Khaimah are only one–third or half of Dubai prices. So there can be only one prediction for the emirate, and that is an upward movement of property prices. We anticipate prices to double in Ras Al Khaimah in two years’ time.

There is talk of a possible oversupply looming in Dubai and many say developers are currently riding a wave in the realty sector and not really heeding the warning signals. What are your comments?

Oversupply could become a reality in the market, but it will correct itself when prices come down. There is no uniform law in corporate behaviour. Every developer has his own intelligence gathering and analysis team to advise him.

We believe in sustainable development and long-term thinking. We have our cash flows all worked out and we are being advised by professional consulting companies such as Ernst & Young and by banks such as National Bank of Dubai and Abu Dhabi Commercial Bank.

Property is always cyclical and in Dubai there is a desperate need for low-cost housing with services. We are planning on adding 3,000 low-cost housing units in Ajman as soon as we find suitable land.

Do you have a fixed payment plan that you are adopting on your projects?

Developers need to gain the confidence of the buyers in the market, particularly since they are buying off-plan from us. As a rule, all our projects offer 30 per cent payment until completion and 70 per cent pre-approved 10-year in-house financing from Khoie Properties.

The in-house financing option is not mandatory but it’s just an added service we offer. We think we are fairly competitive with respect to what Amlak and Tamweel have to offer. We are charging an interest rate of 1.5 per cent per month.

Source: www.business24-7.ae

Long overshadowed by its more glitzy neighbor Dubai, Abu Dhabi is just now beginning to emerge onto the world stage. Until recently, the wealth of the Emirate was a result of its large oil reserves. However, realizing the importance of economic diversification, the government of Abu Dhabi has begun to lay down the foundation for sustainable tourism and banking industries.

Abu Dhabi property: Worth shopping for..

The numbers coming out of Emirate’s fast-growing property market are astounding. The construction industry was worth $6.5 billion in 2007, and between 2005 and 2007, the value of land shot up from an average of $540 per square meter to $1,100 per square meter, according to a study by Colliers International. The percentage represented by the Abu Dhabi mortgage market in the UAE is predicted to leap from 5 percent in 2007 to 22 percent this year.

The study also found that office space occupancy rate is at 99 percent. Demand in this property sector mainly comes from growth in the service and banking industries. In addition, the openings of subsidiaries belonging to multinational companies and expansions of existing businesses along with Abu Dhabi’s economic growth have contributed towards maintaining the impressive occupancy rate. Current asking rents are about 25 percent higher than “incumbent neighbors paying passing rents,” according to Colliers International.

With occupancy rate of 98 percent, the residential market is also growing fast and trying to keep up with demand. Rental prices rose by 22 percent in 2008 when compared to figures from 2007.

The price of residential properties in the city rose by 53 percent from January to April of this year when compared to the same period in 2007, a recent article in The National, Abu Dhabi’s English newspaper, reported.

Short excerpt from a recent Abu Dhabi property news article. Source: www.nuwireinvestor.com/

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Ras al Khaimah has become the second emirate in the country to introduce escrow accounts for off-plan properties following Dubai in September last year.

Improved laws for RAK property investors

The RAK Government yesterday announced that Sheikh Saud bin Saqr, Crown Prince and Deputy Ruler of Ras al Khaimah, issued Amiri Decree Number 22 on July 3 pertaining to the “creation of guarantee accounts for Ras al Khaimah property development projects”.

“It is very similar to Dubai’s escrow law,” said David Sanson, a partner in the Dubai-based property practice of DLA Piper, an international legal firm. “It shows that the other emirates are looking at what Dubai has been doing in terms of property regulations. This will increase investor confidence in the emirates as a whole.”

According to the decree, developers wishing to sell off-plan units must now apply to the Ras al Khaimah Investment Authority (Rakia) to open a “guarantee account”, or escrow, in which amounts paid by buyers towards property purchases, or by project financing parties, are deposited.

Developers licensed to carry out property development activities in the emirate should be registered in the “Register of Developers”, to be prepared by Rakia. To open the guarantee account, the developers must submit a set of documents including: the title deed or affection plan of the plot; a copy of the contract executed by the master developer and the sub-developer; conceptual designs and layouts approved by Rakia; the trade licence of the firm; and a financial statement authenticated by a certified legal accountant on the revenues and expenses of the project, among others.

Developers will no longer be allowed to advertise in local or foreign media, or participate in exhibitions to promote the sale of Ras al Khaimah property off the plan, until they have obtained a written permit from Rakia.

Upon approval, the guarantee account would be created under a written agreement between the developer and the account trustee – either a bank or a financial institution certified by Rakia. Rakia is also authorised to become an account trustee, providing guarantee account services.

Any amount of money paid by buyers of off-plan units, or project financiers, must be deposited in the special account opened in the name of the property project with the account trustee. If the developer has more than one project, separate guarantee accounts must be opened for each project.

The decree states that the guarantee account must be used exclusively for the purpose of Ras al Khaimah property projects. Payments will be made to the contractors and suppliers based on the progress of the project, and in accordance with the agreement concluded between the developer, the contractor and the consultant.

The account trustee has to retain five per cent of the total amount deposited in the account after the developer has finished the project and receives a completion certificate. Those reserved amounts shall not be paid to the developer until a year after the units are registered in the names of the buyers, or unless the developer issues a bank guarantee for the same amount valid for one year.

The registration process would be cancelled if the developer does not tender the project or award it to a contractor within six months from the date of approval to sell off-plan.

Stiff penalties including fines starting at Dh100,000 (US$27,000) will be imposed on any developer who fails to meet certain provisions of the decree.

Source: www.thenational.ae

The multi-million dollar Dubai Metro system which is due to begin carrying passengers in September 2009 could be extended to cover neighbouring Ajman.

Futuristic: The Dubai Metro System

The plan to extend the project is still in its early stage, but should the link go ahead it will be major boost to owners of Ajman properties.

In recent years, the massive growth in property developments, particularly the construction of awe-inspiring edifices that have become instant tourist attractions and the subsequent increased visitor numbers has led to traffic bottlenecks in several parts of the emirates.

It is envisaged that the new metro will play a major part in alleviating the traffic flow problems in Dubai, and any extension into neighbouring emirates will help prevent future traffic issues as they continue to enjoy their own respective property bonanzas.

The proposed extension of the metro is planned to pass through Emirates Road to Al Corniche in Ajman and on to Al Zawra, and then linking Ajman’s newly emerging investment zones.

Chairman of Ajman Municipality and Planning Department, Sheikh Rashid bin Humaid Al Nuaimi, has made in clear that the plans are very much in their embryonic stage and many more factors will have to be discussed before the project gets the green light.

Sales Manager of Arabian Sands, Tom Browning said: “With more and more people investing in Ajman properties, any additional measures to improve the emirate’s already sound infrastructure are most welcome”. He added: “Currently, off-plan properties in Ajman are over 50% cheaper than Dubai so we expect a continuing interest from overseas investors”.

Dubai Metro System – Key Facts

CompletionThe Metro is scheduled to partially open by September 2009 and be fully completed by 2012.

Stations along the route

There will be a total of 47 stations (in addition to station on the extension lines). The Red Line will have 29 stations, including 24 elevated, four underground and one at ground-level. This line is 52.1 km long, including 4.7 km underground. The Green Line will have 18 stations, including 12 elevated and 6 underground. The Green Line is 22.5 km long, including 7.9 km underground.

Adjacent bus and taxi stations

All main metro stations will have adjacent bus stations as part of the integrated transport system which will include buses, taxis as well as water transport links at stations near the creek.

Construction of viaducts for elevated tracks

A viaduct is a bridge, which is placed over piers to make a track for the train. The construction of viaduct spans for the Dubai Metro has started on Shaikh Zayed Road near Interchange 5.5 near Ibn Battuta Mall.

Each of these viaduct spans is being made up with a minimum of eight pre-cast viaduct deck segments, which are manufactured and transported from Jebel Ali casting yard.

Luxurious interiors

The interior of the trains is based on a water and air theme and every train will have five compartments. Every train will have three classes – The Golden Class (VIP), the Women and Children’s Class and the Silver Class (economy).

The Golden Class will have a luxurious interior with leather seating. The Women and Children’s compartments will have plenty of space for strollers and bags to ensure a safe and comfortable journey.

The Silver Class has been finished in a combination of blues and greens. Seating is arranged in a variety of ways giving passengers the choice between admiring views through windows or chatting with friends.

All compartments will have reserved wheelchair spaces for special needs people. There will be a policy of priority seating for elderly, injured, special needs people and pregnant women.

The setting up of the property court will bring transparency among developers in Dubai, while investors will be more inclined towards risk taking, said developers and analysts.

Dubai real estate court: A benefit to buyers

The reactions came after Emirates Business reported on Tuesday that the emirate will set up a special court that will deal exclusively with Dubai property related cases from September.

“The Property Court will be set up as per Law No1 of year 2003 under the main section of the court called The First Instance Court. It will have jurisdictions over all properties in Dubai except those of Dubai International Financial Centre, which has its own judicial system,” said Judge Mohammed Yousuf A Sulaiman, Deputy Director for Dubai Courts and Cassation Court’s Senior Judge.

The property court will be set up with a minimum of ten judges and the number could increase depending on the number of property related cases.

The move follows creation of Real Estate Regulatory Authority, part of the Dubai Land Department, and passage of a law concerning guarantee accounts of real estate developments by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.

“The setting up of the property court is a positive development as real estate market is moving towards maturity and value of transactions are increasing,” Amlak Finance’s Chief Executive Arif Alharmi said.

Nakheel spokesperson Aaron Richardson said: “We’ve anticipated there would be such a court that would aid in the efficient dispensing of matters related to property ownership and mortgage enforcement.

“We welcome this move as part of the future development of the legal process related to the property industry,” he said.

EFG Hermes Director of Research Stephan Schurmann said that risk taking by investors will increase, as there will be less wrongdoing by developers.

“But the big question as regards setting up the court would be how well it would be implemented and how will the structure and set up of the court be,” he said.

Industry hails property court creation

Abdul Majeed Al Fahim, Chairman of Pearl Dubai says: “It is a good initiative and will certainly boost market confidence. There will be more regulation in the market that will bring in transparency. Even property disputes will be solved at a faster pace. We welcome the initiative.”

Wasim Saifi, Chief Executive Officer of Tamweel says: “The move of creating a separate Dubai property court itself shows the importance the Dubai Government gives to the real estate sector. A sector specific court will help overcome obstacles, bring in greater transparency and boost market sentiments.”

Arif Alharmi , CEO, Amlak Finance says: “The setting up of the property court is a positive development as the market is moving towards maturity and value of transactions are increasing. After Rera and escrow accounts, the new court will be responsible to resolve transactions of complex nature.”

Tarek Kandil, Chief Executive Officer, Define Properties says:
“The new court will force ‘everybody to do things in the right way’. The setting up of the property specific court is a very positive thing for the market. It will actually force buyers and developers to do the right thing in the right manner.”

Abid Junaid, Executive Director, ETA Star Properties says: “The court should work with Rera. Currently, the Land Department and Rera handle property cases. Rather than for developers and buyers having to deal with multiple bodies, it will be good if the court brings them under its umbrella.”

Stephan Schurmann, Director of Research, EFG Hermes says: “Investors will be ready to pay higher price for the same Dubai property since in cases of breach of contract refunds will be more likely with the court being operational. A court is necessary because of the recent wrong doings by some developers.”

Source: www.business24-7.ae

Historically, the Greeks, Romans, French and the British have all fallen in love with Egypt. In modern times, Egypt still captivates people’s imagination like no other place on earth.

Attractive Bricks!

Visitor numbers to Egypt have increased to unprecedented levels in recent years, with most people naturally drawn to the country’s historic past. The awe-inspiring Pyramids at Giza and the magnificent Temple at Thebes are Egypt property attractions that every visitor just has to see. A cruise on the majestic River Nile is also high up on many tourists’ agendas.

Scuba diving enthusiasts and those who seek winter sun breaks without the slog of long-haul flights are increasingly visiting Egypt’s beautiful Red Sea Riviera. Holiday towns such as Sharm El Sheikh and Hurghada are booming with many holidaymakers purchasing second homes along the shore of the Red Sea.

With prices as low as €35,000 (Euros) for a comfortable 1 bed apartment in one of the popular Red Sea resort towns, it is not just second home buyers who are seeking out Egypt property; many switched-on international investors are finding property for sale in Egypt a tempting prospect.

Whether enticed by historic Egyptian buildings or bargain priced holiday apartments, Egypt continues to be a popular venue for discerning visitors who appreciated the many attractions – both ancient and modern – that Egypt has to offer.