Category: Development in Dubai

Dubai’s ability to retain its top spot in luring Greenfield FDI projects attests to its capacity to provide international investors unrivaled development potential and value.

According to Financial Times ‘fDi Markets’ statistics, the extensive internet-based database on cross-border Greenfield investments, Dubai continues to be the top global location for acquiring Greenfield Foreign Direct Investment (FDI) initiatives, thanks to the emirate acquiring 511 Greenfield projects in H1 2023.

Dubai has surpassed Singapore, which was in second position, by 325 projects as it continues to set new standards for performance globally as an investment destination. Dubai’s global share of attracting Greenfield FDI projects throughout the first half of 2023 was 6.58%, up from 3.83% during the exact same six-month period in 2018.

The outcomes, which highlight the emirate’s position as a significant investment destination, are in line with the 10-year Dubai Economy Agenda D33, which intends to double the emirate’s economy over the course of that time.

His Majesty The Crown Prince of Dubai and the head of The Executive Council of Dubai, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, stated: “Dubai’s ability to maintain its top ranking in luring Greenfield FDI projects demonstrates the city’s ability to create unrivaled growth opportunities and value for international investors.
The emirate has accelerated its efforts to promote diversification of the economy and innovation under the visionary direction of His Royal Highness Sheikh Mohammed bin Rashid Al Maktoum, the Vice President and the Prime Minister of the UAE and Ruler of Dubai.

His dedication, along with his embrace of cutting-edge technologies, is paving the way for a future rife with possibilities for growth and wealth. We continue to endeavor to establish a purchasing environment that not only earns the trust of entrepreneurs from across the world but also inspires them to contribute to Dubai’s transformation in line with the clear growth path outlined under the Dubai Economic Agenda D33.

The Dubai’s Department of Economy and Tourism (DET) in Dubai recently released new statistics that indicates the city registered a total of 880 declared FDI projects during January and the end of June of this year, an increase of 70% year over year. The Uae FDI Monitor keeps track of, verifies, and evaluates all kinds of FDI projects that have been declared in the emirate.

Additionally, according to data from the Dubai FDI Monitor, 65% of all announced FDI projects are Greenfield FDI projects in Dubai. According to the research, when contrasting H1 2023 with a comparable period in 2022, Reinvestment FDIs climbed from 3% to 4.4% year over year.

Global Greenfield foreign direct investment attraction increased year over year in Dubai as well, hitting AED20.87 billion (USD5.68 billion). Dubai improved from eighth place globally in H1 2022 to sixth place globally in H1 2023, according to the Financial Times Ltd. “fDi Markets” statistics.

In addition, in accordance with Financial Times Ltd. “fDi Markets” data, Dubai ranks first internationally in the attractiveness of HQ FDI projects after luring 33 HQ operations in the very first half of this year, beating out London and Singapore.

The renowned Sobha Group of Dubai has promised a staggering Rs 1,000 crore to the building of the the Sabarmati Riverfront in Ahmedabad, marking an unprecedented step toward foreign investment in Indian infrastructure projects.
This kind gift underlines not just the importance of the endeavor but also the expanding trade connections between Indian and the UAE. Here is a detailed analysis of this development.
The 1976-founded Sobha Group, which has its roots in Dubai, United Arab Emirates, has developed into one of the major real estate builders in the area. The organization has completed multiple famous projects in both India and the Middle East under the direction of its founder at P.N.C. Menon.

A memorandum of Understanding (MoU) has been signed between the Gujarati government & the Dubai-based Sobha Company for the creation of the the Sabarmati Riverfront Project’s third phase.
The MoU was executed in the presence of Gujarat’s chief minister, Bhupendra Patel.

The Sobha Group’s founder, PNC Menon, committed to donating Rs 1,000 crore during the ensuing five years for the construction of the the Sabarmati Riverfront. His past promise to donate half of his own wealth to organizations that benefit regional communities and advance the general development and prosperity of the country is reflected in this donation.

The Ahmedabad Municipality Corporation (AMC) created a special purpose vehicle (SPV), Sabarmati River Development Corporations Limited (SRFDCL) in 1997 with the goal of transforming the Sabarmati Waterfront into a key urban resource for the city.The project is divided into three parts. Phase 1 of the development included 11.5 km of promenades for pedestrians, cyclists, and motorists to get to the lake. It has a lot of public amenities at the municipal level, including stunning gardens and parks, riverfront walkways, the Atal the Bridge, a park devoted to biodiversity, state-of-the-art athletic venues, and an event space.
Authorized in October 2020, the upcoming second phase of River East would extend the existing 11.5 km by 5.8 km.

In order to provide equitable, sustainable, and vibrant urban regions that empowers people and foster economic growth, the third stage of the project will be carried out in collaboration between SOBHA Realty Dubai with the state of Gujarat government.

Another section of the Sabarmati riverfront will be transformed over the 4.5 km stretch of the third phase, which will feature artistic development on both sides of the river.
The Sobha Group, which is renowned for its dedication to quality, prompt delivery, and creative designs, invested in the Sabarmati Riverfront project because they recognized India’s potential for growth.

The Ahmedabad Municipality Corporation (AMC) has launched the ambitious Sabarmati Waterfront Development Project in an effort to revitalize the Sabarmati River, which flows through the city.

 

According to a survey released on Wednesday, non-oil business activity in the United Arab Emirates grew more quickly in September than it had the month before as new orders came in at their quickest rate in four years.

The adjusted for seasonality S&P Global UAE Procurement Managers’ Index increased from 55.0 in August to 56.7 in September, well above the 50.0 threshold that indicates activity expansion.

The updated orders subindex increased to 64.7 from 57.6 in the month before, and the pace of expansion being the quickest since June 2019, according to the survey, which was the main driver of the overall index.

According to David Owen, principal economist at S and P Global Market Intelligence, the increase in new business was aided by companies gaining new clients in both domestic and international markets.

According to the poll, the production subindex grew to 62.8 in Sept from 61.9 the month before, reflecting an increase in new orders, current projects, and new marketing. This suggested that activity was continuing to grow strongly.

According to the study, businesses’ outlook for the coming year improved in September as a result of the ongoing high demand and new customers.

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

 

The groundbreaking for Taraf’s future property, Luce, an exquisite residential complex situated on Dubai’s Palm Jumeirah, has been completed. Taraf is the real estate division of investment holding company Yas Holding, which has its headquarters in the UAE.

The building phase officially begins with the groundbreaking, moving the project one step closer to completion. Asasat Aldhafra APCC Building Contracting, a construction company that began enabling activities in August, and award-winning MZ Architects are partners in Taraf.

“Luce represents an innovative viewpoint on luxury living tailored for discerning local and international investors,” said Low Ping, CEO of Yas Holding Group. We exhibit our dedication to providing top-notch products in the real estate business by using Taraf’s distinctive and distinctive approach. We offer an invitation to see the seamless fusion of exclusivity, luxury, and unmatched design that will transform contemporary living when we start work on Luce.

The CEO of Taraf, Ahmad Shibel, stated: “We’re excited to be beginning development on Luce, Taraf’s first iconic property. With this groundbreaking, we are making progress toward our goal of redefining residential property standards in order to influence the future of luxury living. We’re honored to collaborate on this with partners who are each industry leaders.

The successful launch of Luce has piqued consumers’ curiosity in a distinctive living environment. In order to give inhabitants the utmost comfort and refinement, the development offers a variety of residential units, including roomy flats. Each apartment promises an unrivaled lifestyle in the center of Palm Jumeirah with its cutting-edge amenities, modern décor, and expansive waterfront views.

Private beach access to powdery white beaches is available at Luce, along with luxurious lifestyle facilities, roomy 2-, 3-, and 4-bedroom homes with views of the ocean, a duplex, and a penthouse. The graceful curves and organic lines found in nature, on the beach, and in the sand, as well as the fluidity found in Dubai’s desert and waterscapes, served as the basis for the building’s design.

With the groundbreaking ceremony for the first of several planned opulent residential buildings over the following three years, ACUBE Real Estate Development LLC makes its entrance into Dubai’s booming real estate market. On schedule to be completed by Q1 2025, Adhara Star, a 17-story luxury residential skyscraper in Arjan, will have 113 completely furnished 1-, 2-, and 3-bedroom flats in addition to retail spaces.

ACUBE is a brand-new division of ACUBE SFO DMCC, a single-family-owned group of businesses with more than 20 years of experience in international commercial and residential development, including significant building projects around the GCC.

Adhara Star skyscraper is the first of two constructions that Acube will launch in 2023, and the company is on track to develop and sell 1 million square feet of residential property in Dubai by 2025.

Ramjee Iyer, Chairman and Managing Director of ACUBE Real Estate Development, stated, “Our mission is to create exceptional living spaces that transcend the ordinary, enrich lives, and reshape the concept of modern living; we are committed to crafting developments that mirror our unwavering dedication to excellence and integrity. “The executive team of ACUBE has more than 20 years of experience in building and investing in real estate in Europe, India, and the Middle East.

We have a clear vision for our part in Dubai’s ongoing transition to better, smarter, more sustainable developments, as well as a profound understanding of global real estate dynamics.

The developer’s first tower, Adhara Star, in Arjan – Al Barsha South, will be a symbol of ACUBE’s dedication to fashion, excellence, and affordability. The 17-story tower’s completely furnished units include with the finest materials and equipment, including high-quality porcelain and ceramic tiling, Bosch whitegoods, and Roca sanitary ware for the bathrooms. The skyscraper also complies with vastu. Adhara Star provides residents with all the conveniences of communal living, including pools, a playground for children, a basketball court, a paddle tennis court, a running track, indoor and outdoor gyms, saunas, jacuzzis, steam rooms, and yoga studios.

AED 999,000 is the starting price for a one-bedroom apartment, AED 1.3 million for a two-bedroom, and AED 1.7 million for a three-bedroom.

The demand for high-end, well-constructed residential apartments will continue to be high as Dubai’s growing momentum and appeal as one of the world’s happiest, safest cities continue to draw foreign investors. By designing spaces that capture the spirit of luxury, functionality, and elegance, we have the chance to showcase our abilities and accelerate Dubai’s urban progress,” continued Iyer.

According to the finance minister of the United Arab Emirates (UAE), revenue increased by 31.8% in 2022, contributing to a general budget surplus the previous year.

The UAE, one of the most economically diverse countries in the Gulf, has been expanding its non-oil sectors, putting particular emphasis on industries including trade, tourism, manufacturing, logistics, and financial services.

The finance minister, Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, was quoted by state news agency WAM as saying that spending climbed 6.1% year over year in 2022 to reach over 427 billion dirhams ($116 billion).

It added that the surplus will enable greater fiscal buffers to reduce potential financial risks. “In spite of the rise in revenues, the UAE continues to follow a cautious and sensible spending policy,” it stated.

It did not provide a figure for the budget surplus for the entire year, but in May the central bank reported that the surplus for the first nine months of 2022 reached $46 billion, helped by robust growth in oil and non-oil revenue as well as high oil prices. Non-financial asset purchases increased, rising 94.5% year over year in 2022.