Aldar and Millennium to develop financial district in Malaysia

Aldar Properties and Millennium Development International will lead the development of the new multi-billion dollar Iskandar Financial District (IFD), located in the southernmost tip of Malaysia, adjacent to Singapore.

The development will be undertaken on behalf of Global Capital, an investment entity representing prominent Gulf and Malaysian Investors.

As the lead investor in Medini Iskandar, Global Capital - made up of a Mubadala consortium of investors that includes Aldar, Malaysia Ventures, Unity Capital, United World Infrastructure and Iskandar Investment Berhad - has collectively committed more than $848 million in the land and infrastructure development within Medini Iskandar.

The IFD will be the new heart of Medini Iskandar Malaysia, an integrated development area in the Iskandar Development Region, itself a premier econ-omic growth region promoted by both national and local governments as a strong and sustainable metropolis of international standing.

http://www.gulfnews.com/business/Real_Estate_Property/10247478.html

ACC secures Dh520 million contract for residential towers in Pearl Qatar

QACC, a subsidiary of Arabian Construction Co. (ACC), has been awarded an estimated Dh520 million ($142 million) contract to build residential buildings at the Viva Bahriya district on the Pearl-Qatar in Doha.

Known as VB 29, the project involves the construction of a 20-storey residential tower with a two-level podium, a five-storey apartment building, and town houses.

The total built-up area is 91,000 square metres and the construction duration is expected to take 26 months.

This is the second contract that the project developer, United Development Company (UDC), has awarded QACC.

QACC's General Manager said that the company was honoured that UDC continues to trust and support the quality of its work.



ACC's first project with UDC in 2006 was a Dh622 million ($170 million) project consisting of two mixed-use towers, also on the Qatar Pearl project.

QACC is constructing a total of five towers on the Pearl for UDC, First Qatar Real Estate and UAE-based Capital Investments.

Viva Bahriya is being touted as "the perfect location for family living, celebrating the essence of the Northern Mediterranean." The family destination wraps itself around a harbour and is bordered by a clean white beach. Moroccan styled townhouses and apartments with their Moorish elegance offer 360-degree views across the harbour and towards the beach. Residents and visitors will be able to enjoy the landscaped marine promenade, have access to a wide range of water sports and a variety of gastronomic and shopping opportunities.

Major residential and commercial project unveiled in Muscat

One more project has been announced in Muscat as the race in the booming property market hots up, especially for apartment blocks.

Ironically the new 65 million Omani riyal (Dh621.35 million) project of Al Qandeel Real Estate Services has been named Old Town and will have 550 residential units in the prime Mumtaz Area in the centre of the capital.

"Units in Old Town are available for GCC nationals," Haitham Al Lawati, Al Qandeel Managing Director, told Gulf News on the sidelines of the formal launch of the project at the Afrah Ballroom of Muscat Grand Hyatt.

'Old Town' is a Residential and Commercial Project, conceived on the tenets of a fully integrated complex, and will be built on a plot of land measuring 36,000 square metres and overlooking Ruwi district.

Al Lawati said that the response was encouraging and even before the formal launch almost 50 units were already booked. "The project is for middle income segment and upmarket and there's ample scope for it to succeed," he claimed.

'Old Town', is strategically located on a hill in Mumtaz area at Ruwi and is designed for construction of multi-storey towers rising up to penthouse on the seventh storey. "We will have 550 flats of two bedroom and three bedrooms," he added.

No restrictions

There will also be a shopping mall area and office premises and a full-fledged health club.

Replying to a question, Al Lawati said that their first such project in Al Shatti area was successful. "We have a team of management people to look after the property once each unit is handed over to the rightful owners," he said, adding that there are no restrictions on owners renting out their premises.

Old Town will have seven blocks, five Residential Blocks of GF plus 5 Floors plus Penthouse. All flats will have spacious areas, with functional and aesthetic designs.

The Bazaar

Block six will feature a commercial and residential area called 'The Bazaar', the ground floor will accommodate a commercial rentable area for excess of 50 shops and the first floor housing 50 offices.

In Block 7, 'Old Town' a full-fledged Health Club, that will contain a swimming pool, tennis court, indoor squash court, club house, children's playground and premium restaurants, in addition to an underground parking facility for up to 1,000 cars. http://www.gulfnews.com/business/Real_Estate_Property/10245329.html

Al Barakah launches project in Dubailand

Al Barakah, a Dubai-based real estate group with a project portfolio of more than Dh12 billion, has unveiled a new Dh4.5-billion luxury residential development in Dubailand.

Le Stelle, or The Stars, is being developed by EGSI Group, a part of Al Barakah.

The project has been designed by Korea-based architectural firm Heerim and Italian interior design firm Modo Milano.

It is slated for completion by 2011-end and will be managed by Primatec International.

$300m sugar plant in Sudan

Bin Omeir Holding, an Abu Dhabi-based private investment group, is considering investing $300 million to build a sugar refinery in Sudan and may plan further projects in the country, a Sudanese embassy official said on Wednesday.

The plant would produce 100,000 tonnes of sugar and 20 million litres of ethanol a year in the White Nile province of Sudan, said Nour Al Huda Abdul Alim, economic adviser at the Sudanese embassy in Abu Dhabi.

A company official who asked not to be named confirmed the report, without giving details.

Bin Omeir Holding, a large family-owned business group based in Abu Dhabi, has investments in automobile dealerships, tourism, export and import, financial sector and other businesses.

Nobles plans big with Libya project

Nobles Properties, a new real estate company, is developing the $500 million Tripolis Towers in Libya, officials said yesterday.

The Tripolis Towers in the heart of the Libyan capital Tripoli will be developed in line with an agreement signed with OYA Tourism Investment and Development, a subsidiary of Libya's Economic and Social Development Fund.

The Tripolis Towers will comprise two 40-storey residential towers on 275,000 square feet of waterfront land in Tripoli. The total built-up area will be 3.5 million square feet.

One tower will include a five-star hotel with business facilities, serviced apartments and retail space. The second tower will contain office space.

A Nobles Properties' spokesperson could not confirm the number of serviced apartments, but said the hotel would comprise 300 rooms.

Unit sizes and prices were also not known, the spokesperson said.

Omar Ayesh, founding chairman of Nobles, said this was a "significant" agreement in Libya as part of the company's plans to expand in the Arab world.

"We see great potential in the Libyan market and its outstanding level of economic competitiveness, which stems from a unique combination of attractions that cannot be found elsewhere," Ayesh said.

Wissam Al Idrissi, general manager of OYA, added that Libya is enjoying a period of substantial econ-omic growth, thus attracting many development opportunities.

There is a growing demand in the Libya for multi-purpose property developments, which Dubai developers plan to exploit.

ETA Star and OHI launch luxury township in Oman

One more player from Dubai has arrived in Oman to fill the 'vast gap' for apartment units against the demand as Muscat keeps expanding in every direction.

"In the last couple of years nearly 5,000 housing units have come up in Muscat, but there's room for more," Abid Juneid, executive director of Dubai-based ETA Star Properties, told Gulf News on the sidelines of a signing ceremony on Saturday at the Oman Holdings International Co (OHI) headquarters in Muscat.

ETA Star Properties inked an agreement with Oman-based OHI to launch a premium luxury township at Qurum, in the heart of Oman.

"The new 5,000 apartment units are just the tip of the iceberg and there's immense potential to develop property in Oman, which is witnessing robust, all-round growth," said Maqbool Hamed Al Saleh, chairman of the OHI Group, after signing the agreement.

http://www.gulfnews.com/business/Real_Estate_Property/10243164.html

Burj Dubai hits a new high

Burj Dubai, the iconic tower being developed by Emaar Properties, has
reached another record height of 688 metres (2,257.2 feet).

The
tower became the world's tallest after surpassing North Dakota's,
United States, KVLY-TV mast (628.8 metres; 2,063 ft) in April 2008.
Currently at more than 160 storeys, the tower also has the largest
number of floors in any building.

When completed, Burj Dubai
will meet all four criteria listed by the Council on Tall Buildings and
Urban Habitat (CTBUH), which classifies the world's tallest structures.

CTBUH
measures the height of buildings to the structural top, the highest
occupied floor, the top of the roof and the tip of the spire, pinnacle,
antenna, mast or flag pole.

Designed by Chicago-based
Skidmore, Owings & Merrill (SOM), Burj Dubai is constructed by
high-rise experts South Korea's Samsung Corporation.

Turner Construction International is the project and construction manager.

Currently, some 7,500 professionals and skilled workers are employed on-site at Burj Dubai.

Cladding work is almost nearing completion and work has started on the interiors, which will boast superior finishes.

The
best energy efficient technologies are being deployed to ensure that
the iconic building is also a standard for energy usage and recycling
of water.

Burj Dubai anchors Emaar's flagship mega-project, the Dh73 billion Downtown Burj Dubai.

Described
as the new heart of the city, Downtown Burj Dubai is a mixed-use
neighbourhood with premium hotels, business facilities, modern
residences, shopping malls as well as excellent leisure facilities.

Sheffield Real Estate works on projects worth Dh7bn

Sheffield Real Estate currently has projects worth Dh7 billion, said the Dubai-based private developer in a statement.

"We
have been working very closely for the last year to get our current
projects on stream, including our flagship project in Dubai Marina,
Marina 101. We have already awarded an Dh1.1bn contract for Marina 101
recently and we are in the process of finalising the contract for our
commercial development, Corporate Towers in Jumeirah Lake Towers (JLT)
community,"

"Over the last few years, we have diversified our portfolio in line
with the market needs, which is why we forayed into commercial
development as well as retail. We believe that the real estate market
of Dubai will remain on the growth trail, particularly because of the
number of legislations and regulations brought in by the Land
Department and Real Estate Regulatory Agency (Rera). These regulations
will bring in more transparency and prudence to the market which will
benefit Dubai realty in the long run," said Shroff.

Sheffield
currently has projects across Dubai, which include International City,
Jumeirah Lake Towers and Mizin. The realty firm has undertaken to
diversify its portfolio in Mizin where the developer is building a
retail mall.

Sheffield Real Estate is expected to announce projects in Nakheel's master-development project, Dubai Waterfront

On
its Dh1.7 billion project in Dubai Marina, The Marina 101, a tower
comprising of a hotel component and hotel apartments, the developer
envisages its investors to gain a return on investment of about 75 per
cent.

Marina 101 is scheduled to be completed by the end of 2010.

Tameer finalises pact

Tameer and Sorouh yesterday finalised a pact with a joint venture of Al
Habtoor Engineering, Murray & Roberts and Al Rajhi Projects to
construct the Tameer Towers project in Abu Dhabi for Dh6 billion.

This
brings the total cost of the project to Dh8bn, which is a joint venture
between Tameer Holding Investment and Sorouh Real Estate, said the two
firms.

"The alliance has confirmed the delivery date of June
2011 for the residential portion and December 2011 for the commercial
portion," said Dr Abdallah Shaaban, Managing Director of Tameer. "The
selection of construction partner represents a giant step towards
reaching our delivery goals, and will complement the host of partners
already working on the project."

Tameer Towers was launched in
2007. The construction partners join the project team that includes the
UK-based architectural firm Gensler, structural engineering firm
Thornton Tomasetti, mechanical engineering firm Hilson Moran, and the
façade engineering firm Buro Happold, in addition to the project
manager Hill International and the construction manager Bureau Veritas.

Tameer Towers is in Shams Abu Dhabi, the new development on Al Reem Island that is master-planned by Sorouh Real Estate PJSC.

Dr
Shaaban said: "The alliance concept is a pioneering idea adopted by
Tameer in which all the partners act as one with the main purpose of
constructing the project with the utmost attention to quality, cost,
and delivery. This innovative concept is new to this market and will
mitigate many of the delay-resulting risks associated with claims,
delays, and the rising costs of manpower."

Nakheel yet to award STP contract

Nakheel yesterday said that it is yet to award the contract for
building the first phase of a sewage treatment plant (STP) for The
Palm, Deira.

It
has only selected the Corodex system for developments on Palm Deira.
"Concorde-Corodex Group (CCG) and six other companies were in the
running for the contract to build the first phase of a sewage treatment
plant for Palm Deira, however, we have not made any related
announcements on this contract yet.

CCG said the company has
won the contract to provide the temporary sewage system and associated
vacuum sewerage to facilitate the pre-phase of construction at the Palm
Deira Promenade and sales offices.

Corodex is one of the first private companies in the Emirates to offer water treatment services.

Saudi steel industry booms

A sustained economic and construction boom triggered by soaring oil
prices has given a strong push to the steel industry in Saudi Arabia
and strong demand has boosted prices to one of their highest levels, a
key Saudi bank said yesterday.

Despite hectic competition from
imported steel, the local industry is projected to continue flourishing
because of surging demand as the kingdom is pushing ahead with projects
worth more than $460 billion (Dh1.69 trillion), including a major steel
railway linking its east and west, the National Commercial Bank (NCB)
said in a study on Saudi Arabia's steel industry

Its forecasts showed total supply of iron and steel products will grow
by 13.8 per cent to 15.57 million tonnes in 2008 with domestic demand
set to absorb 89.4 per cent (13.9 million tonnes) and exports 10.6 per
cent (1.65 million tonnes). Supply from domestic production meets
nearly 55 per cent of the total market demand while imports account for
the remaining 45 per cent.

Saudi crude steel output rose by 21.9
per cent to 1.3 million metric tonnes in the first quarter of 2008 from
the first quarter of 2007. The report showed the kingdom's exports of
iron and steel products will rise by about 6.5 per cent to 1.65 million
metric tonnes in 2008.

Domestic demand for steel products is
projected to expand by nearly 14.7 per cent to 13.92 million metric
tonnes in 2008. Total market value of iron and steel products is
expected to rise 18.7 per cent to SAR43bn (Dh42.17bn) in 2008.

"The Saudi economy doubled since 2002, with GDP rising from SAR707bn to
SAR1.41 trillion in 2007 and the medium-term outlook through 2010 is
very favourable. The current boom is accompanied by an acceleration of
economic reforms and sharply growing inflows of foreign investment,
adding to the sustainability of the boom, but with inflationary
pressure," it said.

"In the next five years, a growing number of
mega-projects with estimated investment of SAR1.73trn are entering
implementation stages while some of them have already started civil
works that we expect to continue in the next 15-20 years. All of these
projects contain a large construction component which would induce
aggregate demand for steel and cement. We expect growth in steel demand
to remain strong in the coming years."

According to NCB, Saudi
Arabia's largest commercial bank, the kingdom's steel industry has been
successful in achieving import substitution of numerous products,
particularly those subjected to 20 per cent protective custom duty.

The
figures showed Saudi steel imports jumped by nearly 40.1 per cent to
6.4 million metric tonnes in 2006 and are estimated to have edged up
further by five per cent to about 6.7 million metric tonnes in 2007.

In
the same period, Saudi Arabia exported 1.5 million tonnes and 1.6
million tonnes, respectively. Thus, net imports (imports minus exports)
shot up by 84.6 per cent to 5.2 million tonnes in 2006 and are
estimated to have risen by 6.1 per cent to 5.2 million tonnes in 2007.

In
value term, steel imports rocketed by 70.6 per cent to SAR21.4bn in
2006, and are expected to have further grown by 2.4 per cent to SAR22bn
in 2007.

"One of the significant achievements of the Saudi iron
and steel industry has been its clear ability to expand exports while
enhancing the value-added factor in the domestic economy," the study
said.

"In general, the overall iron and steel industry has
reached a development stage whereby it is not only competing with
foreign products in the domestic market but also has captured a notable
share in the neighbouring foreign markets."

According to the
study, at an overall average price of SAR2,620 per tonne, the aggregate
market value of iron and steel products sold by the Saudi Arabian
companies is estimated to have swelled by 24 per cent to SAR36.2bn in
2007.

"The sharp rise in steel prices and volume of consumption
in the kingdom were the major factors behind rising market size last
year," it said.

"Thus, in the domestic market perspective, the
likely future of capacity overhang situation would tend to intensify
competition among local steel producers and foreign exporters.

"This,
however, is likely to affect domestic steel producers' long-term
profitability notwithstanding, the kingdom's supportive regulatory
regime along with cheap energy cost and the protective tariffs, local
industry will continue to maintain a competitive edge over foreign
producers," the report said.

The study noted that the massive
wave of ongoing construction activities in Saudi Arabia has created
what it described as a "sizeable transient demand" for building
materials including numerous steel products and reinforcing bars.

"In
addition, the establishment of seven new economic cities and the
approval of the much awaited steel intensive railway project linking
east and west of Saudi Arabia are set to create huge amount of demand
for steel in the next five to ten years. In response to emerging huge
transient demand, major players in the steel industry have drawn plans
to expand industrial capacity," the study said.

http://www.business24-7.ae/Articles/2008/9/Pages/09032008_38f9e28c5ea848c0a97a227c21e07fcb.aspx

Ferretti and ACI unveil luxury projects

ACI Real Estate and
Ferretti Group yesterday launched two luxury waterfront residences,
Ferretti Luxury Beach Residence and Pershing Luxury Beach Residence.

The freehold ownership
project branded as Marine Legends, valued at about Dh6 billion ($1.6
billion) located at the Waterfront, offers 1,969,607 square feet of
saleable area.

UAE theme parks to dazzle the world with projected $62 billion

The UAE with its dramatic
pace of development is all set to dazzle the world with over 30
multi-faceted entertainment resorts and theme parks being built until
2012 with a projected total investment of Dh228 billion ($62 billion)
according to CMPi UAE organizers of Middle East Attractions,
Amusements, Parks, Leisure and Entertainment International Trade
Exhibition (MEAAPLE).

Prominent theme parks currently under
development in Abu Dhabi and Dubai include Warner Bros and Ferrari
theme parks in the capital and Dubailand, a multi-billion dollar
enclave of 24 theme parks, four and a half times the size of Manhattan,
which will be the Middle East's answer to Disneyworld. There will be
Universal Studios' Universal City and a Marvel Entertainment theme park
among others.

Dh3.6b tower project in Ajman

Al Rashed Real Estate
yesterday unveiled freehold commercial and residential towers worth
Dh3.6 billion in Ajman. It also joined hands with ACI to strengthen its
high-end real estate solutions.

Springfield Residences
and Highfield Commercial Towers - comprising four towers each - are
located in Humaid City in Ajman, a self-contained development featuring
a mix of residential and commercial complexes. Taking advantage of
their strategic location on Emirates Road, the towers will be
surrounded by lakes and green parks, as well as shopping facilities.
Each residential tower will offer 25 floors, while the commercial
buildings will boast 45 floors - with a total built up area of more
than half a billion square feet.

The commercial towers will offer office spaces and will feature a floor-to-ceiling glass atrium lobby.

Springfield Residences
will encompass studios, one- and two-bedroom apartments. In addition,
they will feature a tranquility zone for the residents, where they can
indulge in one of several state-of-the-art features of the recreational
centre - such as the Jacuzzi, roof top swimming pool, gymnasium and
sauna.

Desert Dream launches Dh1.7b project in Dubai

Property developer Desert Dream will launch its latest project in Dubai Waterfront with a value of Dh1.7 billion.

Dream Harbour will be
a 48-storey residential tower located on 67,850 square feet of land.
The total built-up area will be 750,000 square feet, excluding car
parking.

Mahmoud Khan, chairman
and chief executive of Desert Dream, said the company's portfolio,
including this project, is about Dh2.5 billion.

Dream Harbour will also feature swimming pools, sauna, steam room and retail space.

Prices will start at about Dh1,995 per square foot.

3 Dh615 million residential projects

Real estate developer Dheeraj and East Coast (DEC) broke ground on Wednesday for its three Dh615 million projects located in the heart of Culture Village.

The projects, spread over an area of 60,981 square feet, include two residential developments called Cascade Ville and Cascade Manor and a mixed-use residential-cum-commercial property called The Estate.

Cascade Ville is a seven-storey residential project comprising one to three-bedroom apartments, health club and gymnasium, retail boutique and café and 24-hour security.

The eight-storey Cascade Manor is a mélange of modern and old world charm, incorporating one, two and three-bedroom apartments, and a park with landscaped gardens. The Estate is a mixed-use project blending traditional Arabic architectural styles with modern construction technologies to create a mix of residences and offices.

Dh400m contract

Property developer Plus Properties has signed a Dh400 million contract with Taahud General Contracting for the construction of its SkyGardens project in Reem Island, Abu Dhabi.

The agreement was recently signed by Georges Chehwane, chief executive of Plus Properties, and Adel Noueis, general director of Taahud General Contracting. The agreement paves the way for commencement of construction of SkyGardens, which is expected to become the prestigious waterfront tower in Abu Dhabi.

Abu Dhabi-based Taahud has secured a string of prestigious projects.

The SkyGardens is a residential waterfront property designed by renowned architect James Law, and comprises a selection of one-, two- and three-bedroom deluxe apartments, exclusive garden apartments and sky garden duplex villas. The project will come up near the Reem Island.

Mubadala and MAF to develop mixed-use project in Abu Dhabi

The Mubadala Development Company (Mubadala) and Majid Al Futtaim (MAF) Group yesterday said they have signed a joint venture agreement to invest in a mixed-use development, which will include a shopping mall with quality retail outlets, including Carrefour, leisure concepts, hotels, and office space.

"This new mixed-used project will be developed as one of the key elements of the wider Arzanah project, the high-profile residential development taking shape at the Grand Mosque District of Abu Dhabi," a statement said.

Arzanah was recently launched by Capitala, the Abu Dhabi-based real estate developer and master planner, formed through a joint venture between Mubadala and the Singapore-based CapitaLand.

This 1.4 million square metre development features a pristine waterfront and a lively canal weaving throughout luxurious high-rise apartment towers and family villas, communal gardens, and extensive walking and cycling trails.

Arzanah will offer a blend of retail, leisure and sports, allowing residents and visitors to discover the perfect setting for work, recreation and relaxation.

John Thomas, executive director, Mubadala Real Estate and Hospitality said: "The signing of this joint venture agreement with Majid Al Futtaim Group will introduce a unique blend of innovative retail and hospitality concepts to the wider Abu Dhabi community that promote an active community lifestyle that is the hallmark of Arzanah."

Abu Dhabi firm wins Dh500m US contract

Oderco Oil Equipment Company has won a Dh500 million order from an unidentified US-based drilling contractor for the supply of 10 onshore rigs, the Abu Dhabi-based company's chairman said yesterday.

"We will be supplying one rig every month, January 2009 onwards. The last rig will be supplied by October next year," Dr. Samir Ghalayini told Gulf News by telephone.

He said construction of the rigs to be delivered under the order has already begun. Ghalayini declined to name the US contractor, citing confidentiality.

He said the contractor will deploy the rigs manufactured by Oderco for drilling in the US oil and natural gas fields.

Arabtec's villa portfolio rises to 10,000 with Dh1.6b deal

Arabtec Construction currently has about 10,000 villas under construction, following a Dh1.6 billion letter of acceptance from Emaar-Bawadi Joint Venture to design and construct 1,437 villas as part of the Bawadi project in Dubailand.

The project will be delivered in phases over 37 months.

Arabtec is one of the largest construction companies in the Gulf.

The villas currently under construction include 3,230 for Mohammad Bin Rashid Housing Establishment, 1,515 for Nakheel's Al Furjan project and 1,262 villas for Emaar.

Arabtec is also constructing in Dubai Silicon Oasis and the Sanctuary Falls project in Dubai.

Arabtec last week signed a Dh599 million agreement with Emaar to build 550 townhouses in the 3.4 million square foot Warsan development near Al Awir road.

Dh252 million tower to be built in Ajman

JCA Real Estate on Monday unveiled Emerald Tower, a 100 per cent freehold residential tower to be built in Ajman at an estimated cost of Dh252 million.

The Emerald is a 50-storey residential tower equipped with full amenities like health club, swimming pool, advanced CCTV and safety systems, prayer room, eight high-speed elevators, along with covered car parking for each unit.

JCA Real Estate, an associate company of Jitendra Group of Companies, said the tower will have an earthquake-resistant design.

JCA Real Estate has been appointed as the exclusive sales and marketing agent for the Emerald Tower by its developer BSEL Infrastructure Realty FZE.

Under the agreement, JCA Real Estate will have the exclusive rights to market, advertise and sell Emerald Tower anywhere in the world.

Peace Builders unveils Dh60m tower project

Ras Al Khaimah-based Peace Builders and Developers on Saturday announced here its maiden project - Peace Tower - in Ajman to be built at a cost of Dh60 million.

The freehold residential project will be built in Ajman's Marmooka City, located 35 kilometres from the Dubai International Airport, Peace Builders' managing director Nasir Mahmoud told a news conference. He said the company purchased 125,000 square feet of land for Dh10 million for the development.

"The introductory price, valid until August 31, is Dh475 per square foot. It's lower than the prevailing market price in Ajman, which is about Dh500 per square foot," Mahmoud said.

He said in all, there will be 154 apartments on the proposed 14 floors. In addition, there will be a five-level parking with facilities including a business centre, swimming pool, health club and library.

The buyer will have the option to buy studios, one- and two-bedroom apartments. The size of the apartments ranges from 552 square feet to 1,140 square feet of carpet area, Mahmoud said.

Peace Tower is scheduled for completion in November 2011, Mahmoud said. "The drawings for the project are likely to be approved by authorities by the end of August this year," he said.

Dubai Investments launches Dh2 billion self-contained community

Dubai Investments (DI) announced the launch of Mirdiff Hills, a Dh2 billion mixed-use development in Dubai, through its real estate arm Dubai Investments Real Estate Company (DIRC).

The latest in a string of mega projects launched by Dubai Investments, Mirdiff Hills is envisioned as a self-contained community comprising residential apartments, corporate offices and retail outlets.

The project, which will have a total built-up area of 2.7 million square feet, comes equipped with all modern amenities such as swimming pool, clubhouse, playschool, internet facility, coffee shop and children's play area, and offers 24-hour security.

Khalid Kalban, Managing Director and CEO of Dubai Investments, said, "DIRC intends to play a leading role in the regional property scene, and with the launch of Mirdiff Hills we take a significant step towards achieving our strategic objectives and consolidating our market presence. With several more prestigious projects in the pipeline, DIRC is set to further expand its portfolio and position itself at the forefront of real estate activity within the UAE."

In all, Mirdiff Hills will feature 680 well-appointed apartments, 380 offices and 129 retail outlets.

Located in the city's Mirdiff area, prominent Dubai-based architects Al Shurooq Engineering Consultants designed the project, while construction leader Al Arif Contracting Company has been appointed the lead contractor. Mirdiff Hills is scheduled for completion in early 2010

Damac gives Dh805m deal to Intermass

Luxury lifestyle provider, Damac Properties, has awarded a Dh805 million contract to Intermass Engineering and Contracting Co, for its Lakeside project at International Media Production Zone (IMPZ).

This project will be completed by December 2010. Lakeside project is Damac Properties' third project in IMPZ - the previous two projects being the Crescent and Lago Vista. All the three projects are being built by Intermass.

"Intermass is one of the leaders in the engineering and construction industry in the UAE today and their appointment as main contractors is due to our faith in the quality of their work and our past experience with them," said Peter Riddoch, chief executive officer of Damac Properties.

Machinery sector enjoys a boom amid rising material costs and labour shortage

The UAE remains the Gulf's largest construction market with some 1,400 active projects worth around $1 trillion.

The majority of these projects are in Dubai and Abu Dhabi, according to Simon Jevons, construction products manager of Sigma PMV, a construction equipment supplier.

The UAE is also home to more than 35 per cent of the heavy construction equipment available worldwide, with 25 per cent of the world's tower cranes all housed in Dubai.

"Consider the size of the UAE, a relatively small 82,880 square kilometres. On this patch of desert land, that could fit inside Iran nearly 20 times, there are 6,000 construction companies," the experts point out.

The country tops the tables globally in terms of per capita expenditure on construction, according to the Business Monitor International.

Jevons said the current conditions will force contractors to focus more on efficient machinery and less on labour.

"Investment in the right type of machinery to undertake labour-intensive processes is an obvious choice for contractors as workforce and material costs increase. Modern construction methods can reduce labour costs by as much as a factor of ten," Jevons explained.

The cost of materials has rocketed over the last year, as cement prices surged 50 per cent and steel prices 70 per cent.

Steel reinforcement bars saw a 35 per cent price hike, now standing somewhere between $1,530 and $1,550 per tonne and cement a 15 per cent rise between May and July this year alone.

These rising material costs are compounded by increasing labour shortages in the UAE. Around 250,000 illegal labourers left the country last year, leaving contractors and developers struggling in the aftermath

IFA launches $2oom project in Thailand

IFA Hotels and Resorts and Thai developer, Raimon Land, on Tuesday announced their launch of $200 million (Dh730 million) project, The Lofts Southshore in Pattaya, Thailand.

With Thailand being a popular destination for Gulf residents, many Middle Eastern investors are expected to invest in Southshore.

Nigel Cornick, chief executive officer of Raimon Land, said, "We are confident The Lofts Southshore will attract plenty of investors given the quick pace that investors are buying new condominiums coming into the market in Pattaya.

"We also believe we'll see a great amount of interest from Middle East investors as we've seen in some of out other Thai properties," Cornick said.

While Pattaya itself is not to everyone's liking, The Lofts Southshore is located on 674,000 square feet of hillside, overlooking Pattaya town. The project is comprises 720 apartments.

Talal Jasem Al Bahar, chairman and managing director of and, stated, "We are very confident in the Thai market and are pleased with the growth of Raimon Land. We will continue supporting the company in order to grow it further and expand it into more of a Southeast Asian real estate developer."

Prices will start at $87,000 per unit. The units range in size from 355 square feet studios, to one, two and three bedroom apartments measuring between 624 and 1,820 square feet.

Baani unveils Dh1.5b Dubai project

Indian developer Baani on Sunday launched its first project in the UAE, valued at Dh1.5 billion in Dubai Maritime City, in conjunction with Gowealthy.com.

The iDubai is located at the Harbour Residences of Dubai Maritime City and it comprises two 50-storey towers, the iTower and Sky Tower, offering residential and 10,000 square feet of retail space and 40,000 square feet of office space.

Baani president Virendra Bhatia said: "The opportunity we saw in Dubai...we felt a kind of scale that is not available in India."

Due to its sleek, slim shape, the iDubai is similar in design to the Flatiron building in New York City.

There is a seven-storey atrium, and five levels of podium parking in each tower. All the apartments will have sea views.

The iTower has seven one and two-bedroom apartments per floor. The one-bedroom units will be between 1,050 sq ft and 1,425 sq ft and the two bedroom units will be between 1,720 sq ft and 1,990 sq ft.

The Sky Tower has three bedroom sky villas, with one villa measuring 3,280 sq ft, on every floor. Each villa has an infinity pool.

Phase two of iDubai will include garden villas ranging between 3,200 sq ft to 4,100 sq ft and eight townhouses.

Dh1.2b Greek-style luxury residences on Marjan Island

Stallion Properties on
Sunday launched the Dh1.2 billion Greek-style development on Marjan
island in Ras Al Khaimah, in line with plans to raise its total
portfolio in the UAE to around Dh4.5 billion.

The Santorini
development will comprise 560 units covering an area of just over
463,000 square feet. The units will consist of Aphrodite townhouses,
Zeus villas, Apollo condos and Artemis luxury condos.

Construction will begin in October this year and is expected to be complete in 2011.

Pearl Dubai to develop Dh2.5b Baccarat projects

In a move to bring a touch of Parisian glamour to the UAE, Pearl Dubai, a consortium of investors developing the Dubai Pearl, has announced the development of a Dh2.5 billion Baccarat Hotel and Residences.

Nestled in the hub of the Dubai Pearl free zone, the Baccarat residences will include over 300,000 square feet of luxury designed by French crystal makers Baccarat.

Private swimming pools, roof gardens, crystal chandeliers and sweeping staircases are all part of the plan.

Baccarat is best known for its tableware, vases and jewellery - and is a firm favourite with royal households around the world.

Al Fara'a unveils Dh1b tower project in Dubai

Al Fara'a Properties, a subsidiary of Al Fara'a Construction, Industrial and Property Group, has announced the launch of Dh1 billion Burj Al Fara'a, a commercial tower located in the commercial business district of Jumeirah Village.

The project is scheduled for completion by December 2011. Al Fara'a Properties has revealed plans to break ground on the 38-storey state-of-the-art commercial tower by December 2008. The new project will have a selection of office spaces.

"We will be working towards the timely delivery of this project, which will be the constructed using the highest industry standards to supply to the booming demand and fittingly represent the philosophy of our organisation," said Natasha Gangaramani, director of Al Fara'a Properties.

Gangaramani said the company's main focus "lies in achieving success in all our endeavours, and we have developed a result-driven strategy based on the rapidly-maturing real estate climate which clearly states the excessive need for commercial spaces to be built in Dubai within the coming years.".

Dh1.29b Project in Dubai

Al Khail Road - a major road parallel to Shaikh Zayed Road, will be turned into a six-lane highway to cope with increasing traffic congestion, said a senior official.

His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, has approved Dh1.29 billion contracts for Phase 2 and 3 of the Al Khail Road Upgrading Project being undertaken by the Dubai Roads and Transport Authority (RTA).

The project includes widening and upgrading the 15km-long Al Khail Road between the junction of Muscat Road up to the junction of Emirates Road.

The existing road will be widened from four to six lanes, and the existing four roundabouts on the road will be transformed into interchanges.

The project also includes an extension of the Al Khail Road for nine kilometres providing a link between the Emirates Road interchange and the Dubai Bypass Road to serve new communities.

Emirates Float Glass signs contract for second manufacturing facility

Emirates Float Glass
(EFG), a subsidiary of Glass LLC, wholly owned by Dubai Investments,
has signed a Dh575 million contract with Italian engineering firm Ianua
S.p.A for the construction and supervision of its second float glass
manufacturing facility in Abu Dhabi.

The project is being set
up with technological licensing agreement with PPG, USA. The
construction of the new plant, which complements the company’s existing
production unit in the Abu Dhabi Industrial City, will enable Emirates
Float Glass to become the largest single-location float glass
manufacturing facility in the region.

The two factories,
covering a total area of 320,000 square meters, will have a combined
production capacity of 1,200 tons per day.

Tabreed Cooling Plant to be built

Amana Contracting and
Steel Buildings has been awarded a landmark project to construct by
SNC-Lavalin Gulf Contractors for the Tabreed Cooling Plant (Civil,
Architectural & Building Services Works) at Dubai Metro’s Project
at Al Rigga, Union Square, Dubai.

The Dh33.4 million building
is expected to be completed by April 2009. The project is spread across
over 800 square metres of land.

Amana is one of the fast track and turnkey construction companies in the Middle East.

Major projects in Ajman

Awali Real Estate Investment yesterday announced the launch of four towers valued at Dh1.2 billion located within the Dh20 billion Awali City in Ajman.

The 25-storey Mashrabia Residence will be residential twin towers, comprising of 800 apartments. The residence will be around 14,965 square feet on each floor. Mashrabia Residence will also have a swimming pool, health club, retail space and seven levels of parking facilities.

The two Chevron commercial towers will be 25 storeys each and will offer a total of 15,000 square feet of office space on each floor. There will be 304 offices in each tower and also include a health club, gym and retail space.

Prices start at Dh575 per square foot, with an extra Dh3 added per floor for Mashrabia Residence.

In Chevron commercial tower, prices start at Dh650 per square foot with Dh3 added per floor.

Over $5tr Oil Money to be invested in MENA

An estimated $5 trillion to $9 trillion in cumulative GCC oil revenues generated over the coming decade will be invested within the Middle East and North Africa (Mena), experts say.

In 2002, nearly 85 per cent of the Gulf's wealth was invested abroad in financial instruments mostly linked to the US dollar. However, by 2007, this had fallen to 75 per cent due to the rising investment within the Gulf itself, Gary Long, president and chief operating officer of Investcorp, a provider and manager of alternative investment products, said in a statement.

Long predicted that the oil boom will translate into an investable asset pool in excess of $10 trillion by 2020.

A set of trends will determine how this wealth is spent. Long said investments will increasingly take place onshore in Mena and in Asia.

Other trends include "a shift in allocation to alternative investments and more direct investment strategies; the increased sophistication and institutionalisation of the Gulf, including the growing importance of corporate governance; a booming demand for Islamic products and the rapidly growing importance of sovereign wealth funds", an Investcorp statement said.

Oversupply fears hit by Property Market - Dubai

Faith in Dubai's real estate sector could be shaken if the plethora of developments coming on to the market next year outstrips demand and if the government goes back on its promise to issue residency visas.

"I think a bigger worry would be if the government withdrew its promise to grant residency visas for freehold purchasers and their families. It is clear that a significant number of buyers in the market see Dubai as a safeguard against trouble in their home countries and this safety net would be removed if that promise was not honoured," Matthew Green, research director at Cluttons, UAE, told Gulf News.

These comments come after a report was released yesterday by ratings firm Fitch, identifying oversupply and sustaining foreign demand as the major challenges threatening Dubai's real estate sector.

"The main challenge is oversupply. Some projects coming on to the market in 2009 and 2010 will all be coming at one time," Bashar Al Natoor, author of the report, said.

Marwan Bin Galita, chief executive of Dubai's real estate regulatory authority, Rera, said there is currently around Dh6 billion in escrow accounts in over 33 banks. Around 800 developers have now registered over 1,624 projects.

The report notes that if supply does exceed demand, prices of property will fall, reducing revenues, which would then have a negative effect on developers' credit profiles.

Recent figures from Colliers International show that the average price for residential properties in the first quarter was $434 per square foot. While high for Dubai, the prices are still below those in Manhattan ($1,289) and in London ($2,093).

However, on a positive note, the prospect of falling house prices would be a glimmer of light for Dubai residents.

"There is a high probability of late delivery and even project cancellation, due to logistical constraints, which could ultimately result in a better match between supply and demand," said Al Natoor.

An analyst at EFG-Hermes in Dubai, Stefan Schurmann, said although supply is catching up with demand, he doesn't see oversupply as being a major threat to the market.

"There are two things [affecting supply] and that is delays and construction constraint. A lot of projects are coming to the market this year and next. There is some risk as supply is catching up with demand starting next year.

"We know demand is strong. There are still a lot of people coming to the UAE and those people need accommodation," Schurmann said.

"I honestly don't think oversupply is a concern at this point or over the next three years," Green said.

"If you look at the actually deliveries over the past two years, you realise that only, say, 50 per cent of expected product is delivered on time. In 2007, around 30,000 units were handed over compared to a forecast of 60,000 units the year before.

"Delays are just part of the market in Dubai and it may actually help in the long-term by drip-feeding supply instead of dumping a huge glut of new units all at once," Green said.

In terms of office space, the report says that Dubai, with its 1.4 million population, currently has approximately the same amount of office space under construction as Shanghai (population 20 million) and Moscow (population 10.4 million).

Zaya to build Dh3b Abu Dhabi project

Real estate company Zaya has launched a Dh3 billion island project called Nurai comprising 31 beachfront estates and 50 water villas located four kilometres from the Saadiyat Island, its chief executive said on Wednesday.

"It's a luxury property that will be known for its privacy and exclusivity," Nadia Zaal told Gulf News. "Sales began in May this year. We have sold whatever we released. We are looking to release rest of the project in October this year."

The estates and villas are priced between Dh35 million and Dh110 million. There will also be a 60-room resort with room rates ranging from $3,500 to $5,000 per night.

Zaal said the Nurai project will have a construction cycle of two to two-and-a half years. The island can either be reached by a helicopter or by private yachts, although Zaya will provide pickup facilities for Nurai's guests on the Saadiyat Island. Nurai also offers a private helipad and marina with arrivals lounge, a fully-equipped spa and fitness centre, private beaches and water sports facilities.

"We will start levelling and marine works on Nurai from August 1. The construction work will be taken up from September-October this year and the entire project is scheduled for completion by December 15, 2010," said Zaal.

Damac unveils Qatar project

Damac Properties on Monday said it has launched its first commercial tower in Qatar Business Square.

Business Square is an urban development spanning 39,000 square metres and is located in the southern end of Lusail, close to the West Bay area, within the Marina District. The launch comes close on the heels of an announcement made by the developer last month on the opening of their first sales office in Qatar.

Business Square is 20 storeys tall and is meticulously designed to enhance a productive work atmosphere so as to reap good returns. The value of the project exceeds 400 million Qatari riyals.

Nakheel and Auchan announce the creation of HyperCorp LLC

Nakheel, a Dubai World company and one of the world’s largest and most innovative real estate developers, has announced the creation of HyperCorp LLC - a joint venture company with the Auchan group, one of the world’s largest food retailing groups.

A division of Nakheel Retail, HyperCorp LLC aims to develop the Auchan banner across the Gulf with French company Auchan holding 10 per cent of the capital.

The new company plans to open a first wave of five hypermarkets located in Nakheel’s developments across Dubai including Dragon Mart (before the end of 2008), Great Mall Dubai in International City, Palm Jumeirah, Jumeirah Village and Palm Deira.

"We will open 15 hypermarkets and 40 supermarkets across the G.C.C. in the coming 10 years and will expand into other quality developer’s projects as well as our own.”

Al Zorah announces preliminary road work

Al Zorah, the Dh200 billion masterplanned community development in Ajman, announced the commencement of preliminary construction work for its five major roads.

Pre-qualification documents have also been sent to both Marine and Infrastructure works contractors.

Located along Ajman’s pristine beachfront and creek, Al Zorah will be a self-contained City containing varied residences, offices, retail outlets, schools, hospitals and leisure facilities including marinas and a number of 5-star resort hotels.

The project is being developed by Al Zorah Development Company, a joint venture between the Government of Ajman and Solidere International Limited, a leader in urban planning and the development of large scale projects in the Middle East and Mediterranean region.

Gulf construction costs rise 50% in first half

Construction costs in the Gulf increased by 50 per cent in the first half of 2008, in comparison to a 30 per cent increase recorded in 2007, according to Al Mazaya Holdings, a regional real estate developer.

Al Mazaya attributes the rise in costs to inflationary pressures, which were raising the cost of building materials and causing both skilled and unskilled workers to leave the country.

Executive vice-president at Al Mazaya Holding, Salwa Malhas, said the cost of materials had risen by 50 per cent on average and even more for some items.

Al Mazaya attributed the labour shortage to the deportation of thousands of illegal Asian workers "in a bid to solve the demographic imbalance and to put an end to continuous strikes by labourers who are unable to cope with the rising cost of living," a statement said.