Month: September 2023

As the emirate’s real estate market continues to flourish due to strong investor demand, Dubai real estate firm Azizi Developments has begun construction on a Dh30 billion dollars ($8.16 billion) mixed-use building.

The developer announced on Thursday that the Azizi Venice construction project in Dubai South will have more than 30,000 units, comprising 100 mid-rise apartment buildings along with more than 400 villas and palaces.

In addition to other facilities, the project, which is being built on a 15 million square foot parcel of land, will include Dubai’s second opera theater after Dubai Opera and a temperature-controlled pedestrianized boulevard.

According to Mirwais Azizi, chairman and president of Azizi Developments, “This community will become a… home for about 80,000 residents and a… tourist attraction for about 30,000 visitors daily.”

Due in part to government initiatives like granting residency permits to retired people and remote employees, Dubai’s real estate market has recovered strongly from the downturn brought on by the coronavirus.
The emirate’s decision to broaden the ten-year golden visa program, the economic benefits of Expo 2020 Dubai, and rising oil prices all contributed to the momentum of the real estate market expansion.

In line with strong demand and sustained economic growth, domestic real estate prices in Dubai increased 17% on an annual basis in the second quarter, representing the 10th successive quarter of gain, according to a report released last month by consultancy Knight Frank.
According to the report, property prices increased 4.8% from the prior quarter during the months of April to June.

In addition, Dubai experienced the greatest rate of selling of properties worth over ten million dollars anywhere in the globe in the subsequent quarter of 2023, according to a different report this month from Knight Frank.

According to the research, the emirate sold 95 houses worth over ten million, up from 53 throughout the identical period previous year, outpacing sales in 11 other cities, notably New York, London, Paris, Shanghai, Hong Kong, Sydney, and Singapore.
In response to the emirate’s high investor demand, multiple fresh endeavors have been created.

In order to purchase properties in the developer Nakheel’s brand-new riverfront villa development at Palm Jebel Ali, hundreds of customers waited outside its sales center for hours last week.

A lagoon, coastlines, and melodic and dancing fountains would also be part of the development, according to Azizi.

It was said in the announcement that Azizi, as the chief developer, would be in charge of erecting the structures, roads, and other infrastructure.

Along with one tiny hotel on a small island in the midst of the lagoon, the neighborhood will also contain two five-star hotels that are owned and managed by Azizi.

It will also contain yoga and athletics schools, a medical center, a cycling and running track, and an avenue with shops and restaurants.
According to a May statement from Azizi, the business intends to invest up to Dh60 billion in the development of its portfolio of 50 hotels and resorts in Dubai, including a seven-star hotel.

According to a rating agency, an increase of tourists, government efforts, and technological improvements would promote economic growth.
According to a recent report, the UAE’s GDP is predicted to increase by 4% in 2024 and 3% this year due to robust non-oil sector growth.

According to S&P analysts, the country’s economic growth will be fueled by increasing tourist arrivals, helpful government efforts, and advancing technology.

Wholesale commerce, industry, property, construction, financial services, tourism, and oil and gas are expected to be major drivers of the nation’s economic growth in 2024, according to Trevor Cullinan, national ratings analyst at S&P, who spoke to state news agency Wam.

S&P stated that the economic and social policies put in place by the administration over the previous two years “are strategically designed to pave the way for received, long-term economic expansion.”

“The UAE’s grandiose goal of luring 40 million tourists by 2030, along with the intention of raising the total amount of lodgings to 250,000 over the same period, are anticipated to have a pivotal role in the nation’s capacity to host big international events.”

The predicted economic growth is in line with predictions made by the UAE central bank, which anticipates that the nation’s GDP will rise by 3.3% this year.

In the UAE’s non-oil private sector economy, business activity remained brisk in August, with output and the number of new orders both rising.

The second-largest economy in the Arab world, as measured by the adjusted for the season S&P Global purchasing managers’ index, fell from 56 in July to 55 in August. That was far higher than the neutral 50-point line dividing growth from contraction.

As productivity increased significantly and firms experienced their fastest drop in time to delivery in more than four years, the year-ahead optimism among those questioned reached its best level since March 2020.
Expatriate and tourist inflows, as well as favorable mood from investors, consumers, and the private sector, will support the UAE’s non-oil economy, according to Mr. Cullinan.

The Mohammed bin Rashid Al Maktoum Business Prize has been introduced by Dubai Chambers in its newly reinvented form, which includes a number of improvements to the award methodology, evaluation procedures, and prize categories. The award, which was established under the auspices of Mohammed bin Rashid Al Maktoum Global Initiative (MBRGI), stands for the highest level of acknowledgment for organizations’ contributions to the long-term growth of Dubai’s thriving business community.

The new award was introduced today at a special ceremony held at the Dubai Chambers headquarters under the auspices of His Royal Highness Sheikh Mohammed bin Rashid Al Maktoum, the Vice President, Prime Minister, and Ruler of Dubai. Abdul Aziz bin Abdulla Al Ghurair, the chairman of Dubai Chambers,

President & CEO of Dubai Chambers Mohammad Ali Rashed Lootah in the presence of prominent members of the regional business community.

The Mohammed bin Rashid Al Maktoum Business prize and the Dubai Quality Award, two of Dubai’s most prestigious honors for business performance, were combined to create the new prize. The project is an element of Dubai Chambers’ effort to raise standards across the board for businesses.

The award includes four new categories: Outstanding Business Award, Family Business Award, Global Expansion Award, and Digital Innovation Award. The Excellent Business Award is given by Dubai Chambers, while the Family Business Award is given by the Dubai Chamber of Commerce.

In accordance with the city’s vision and the objectives of the D33 economic plan, the award has undergone a major restructure to reflect the demands of the business community. From October 2nd, 2023, applications will be welcomed from businesses engaged in a variety of industries. Businesses with offices in Dubai as well as foreign corporations with regional headquarters there are eligible for the award.

The Mohammed Bin Rashid Al Maktoum Business Award has been restructured to better reflect the ambitions of the Dubai business community in the contemporary era, according to Al Ghurair. The standards for assessment are now closely in line with the strategic aims of Dubai Chambers and are meant to encourage a dedication to establishing an excellence-centered culture.

The award is part of Dubai Chambers’ initiative to foster a culture of imaginative thinking among the local business community and aims to enhance company strategies, processes, and overall performance. The new model, which focuses on procedures and outcomes in important areas as concrete indicators of business success, is based on considerable study and adopts the most recent approaches.

Along with financial success, the review process also looks at strategy, leadership, management of staff, ESG, and digital transformation. In order to be included amongst the top three contenders in each category, participating companies must receive a minimum amount of scores from the award assessors over a wide range of criteria.

During a formal event that will be held in the second half of 2024 in front of participating businesses and esteemed members of the private sector, the winners and runners-up of each prize category will be recognized.

The establishment of a framework for business excellence by Dubai Chambers is intended to motivate organizations to maintain high performance levels through the evaluation process. All candidates will receive a thorough examination of their the submissions, and finalists will also be urged to spread their best practices around the business community with other organizations.

The vibrant hospitality industry in the United Arab Emirates is set to add 9,200 more rooms by the end of 2023, according to leading international real estate advisory firm Knight Frank. In accordance with Knight Frank’s most recent evaluation, by the end of 2023, Dubai’s hospitality sector would operate around 154,000 rooms, a significant 6.4% rise from the year 2022.
Leading industry titans are fueling this expansion, with Accor taking the top rank with 71,820 already available rooms and 49,510 more on the way, all of which are anticipated to be finished by 2030. Marriott International is next, with 52,790 planned rooms in addition to the 63,790 now available.

The International Hotel Group Hotels and Resorts, with 35,140 existing rooms and 22,120 under construction; the Hilton Worldwide brand, with 33,450 existing rooms and 39,860 planned; Radisson Hotels, with 22,830 available rooms and 11,651 more planned; and Rotana Hotel Hotels, with 16,976 existing rooms and 10,807 under construction.
With a current inventory of 207,200 hotel rooms and an extra 24,500 rooms under construction, the hospitality industry’s global dominance is further cemented.

70% of the forthcoming supply for the UAE is located in Dubai, which keeps monopolizing the sector. 8.6 million tourists visited Dubai in H1 2023, a notable 20% rise over 2022. This increase highlights Dubai’s continued popularity as a top travel destination worldwide. 67% of Dubai’s current hotel inventory is made up of hotels with international brands, demonstrating the city’s popularity on a global scale. The luxury and higher upscale hotel segments, which appeal to discerning travelers, account for a sizable 70% of the supply in Dubai that is now under development and in final planning.
Partner and Head of Hospitality, Tourism, and Leisure Advisory Turab Saleem

The Dubai industry as a whole reported a 0.8% rise in RevPAR compared with July 2022, powered by a 6.8% rise in occupancy but restrained from further expansion by a 5.6% fall in ADR, according to STR statistics published by Knight Frank.

The majority of sectors, according to categorization information gathered by HOTSTATS for July 2023, saw slight ADR reductions, with the exception of upscale city center rooms around the downtown area, Business Bay, and SZR, which saw a 2% increase. Luxury beach resorts saw an increase in occupancy comparable to those of other groups, but with a greater ADR decline of 13%.

The number of hotels in the UAE is growing, which helps cities like Dubai thrive. As reported by Trip Advisor, Dubai has emerged as the world’s preferred location for two years in a row, as well as in the first part of 2023, the emirate had the highest occupancy rates ever, at 78%.
Partner and MENA Head of Research Faisal Durrani