Deal for third Crowne Plaza hotel in Dubai signed

InterContinental Hotels Group (IHG) on Sunday said it has signed an agreement with The Chelsea Group, part of Crimson Hotels, to develop a third Crowne Plaza hotel in Dubai property.

Crowne Plaza Dubai Business Bay, scheduled to open in 2010, will be located at the heart of Business Bay, set to be the city's new central business district.

"Located next to Shaikh Zayed Road and Dubai property International Financial Centre, the property will be perfectly situated to capitalise on the thriving corporate travel market in the city," the company said in an e-mailed statement.

The hotel will consist of 367 rooms and several different options for food, as well as business and corporate institutions, which will include a hall of 500 square meters and more rooms. Leisure travelers will also be able to use the health club, spa, swimming pool and terrace.

John Bamsey, the chief operating officer, IHG, the Middle East and Africa, said: "Dark hotels have already proved a valuable partner for us in England, and we hope to continue to work with them in the future, as in the UK, and now also in Dubai property. In an increasingly demanding business-class traveler arriving in the UAE, and the country took a leading position in corporate travel, Crowne Plaza brand is a guarantee of a high level of comfort and service, combined with the practical amenities of the last. "

Crowne Plaza Hotels and Resorts is currently located in approximately 50 countries.

UAE posts Dh250b trade surplus in 2007

The UAE posted a trade surplus of about Dh250 billion, with re-exported goods valued at Dh200 billion in 2007, UAE Minister of Foreign Trade Shaikha Lubna Al Qasimi told the British Business Group yesterday.

The minister spoke of the UAE's plans for sustained economic growth and progress, in partnership with the UK. The nation's investment revenues are currently one of the highest in the world, she said.

In a country of non-oil revenue is expected to grow to Dh179.8 billion by the year 2012. The national gross domestic product is expected to increase by 60 per cent from Dh678.9 billion in 2007 to Dh1 trillion by the year 2012, depending on oil revenues increase by only 9 per cent annually Dh300 billion, "she said.

UAE comes Dh7.3 billion (about one-third of the area of Dh24 billion) value of exports to Britain. Dubai accounted for the largest share of 66 per cent. Over 85 per cent of trade between the two countries takes place through Dubai and the northern emirates, according to industry reports.

Britain has identified the UAE, as one of the key emerging markets, where it plans to enhance trade and investment relations.

High growth to lure global investors

Dubai's GDP growth of $54.3 billion in 2007, matched with its strategic plan and upcoming projects will continue to create opportunities for global investors, officials said.

"Dubai's non-oil foreign trade reached $185 billion in 2007 compared to $139 billion in 2006 recording a 33 per cent rise," the Dubai property Chamber of Commerce and Industry said in a statement. Dubai property Chamber officials yesterday instructed 130 senior officials of the French company PPR whose chairman, Francois-Henri Pinault chose Dubai as the venue for the Group's top executive meeting.

The focus also fell on key sectors of development containing tourism, retail, infrastructures, knowledge, transports, logistics, manufacturing, professional and Government Dubai property services and called upon the private sector to play a greater role by working together with the public sector.

"The hospitality industry is anticipating a real boom with its aim of 100,000 rooms for 15 million visitors by the year 2015. Currently, there are 324 hotels, 33,731 rooms with occupancy rate of more than 85 per cent throughout the year as a total of seven million people used Dubai hotels in 2007 compared to 1.9 million in 1996," Hesham Abdullah Al Shirawi, second vice-chairman, Dubai property Chamber, said during the briefing.

The presentation highlighted Dubai's ambitious economic goals under the Strategic Plan 2015 that shows a real GDP growth rate of 11 per cent for the next eight years. Dubai's GDP by the end of 2005 was still higher than other Gulf countries and even Asia and US.

Dubai unveils low-cost homes

Dubai Properties is to roll out 50,000 low-cost housing units in the coming years, a top official said - which could help the growing housing problem for the emirate's gradually marginalized middle income groups.

"These affordable housing projects will be a mix of freehold and rental units," Mohammad Bin Braik, chief executive of Dubai Property Group, told in an interview. He, however, could not give the indication of the mix.

"We have already built a sizeable housing project in Al Quoz area that will soon be offered on rent," he said.

He did not elaborate his plans for the housing schemes, just adding that the announcements will be made in due course.

The first announcement is expected this year.

These will be in addition to the 160,000 residential units that are being built - mostly for the upper income groups - in Dubai property.

This comes as a good news for the emirate's 1.44 million population, a large number of which stays in Sharjah and Ajman for cheaper alternatives.

Most of the current projects adapt to upper income groups and high net worth individuals, creating a large imbalance in the emirate's housing market.

House rent and traffic continues to dominate the list of public worries in Dubai property - which prompted the government to cap rents in recent years.

In Dubai property government investment in housing schemes in 1960s and 1970s, has seen the development of large numbers of settlements in Satwa, Karama, Ghusais and Deira, which have helped people in those days.

However, due to the sudden growth in the free market in 2002, major developers focus shifted from the market transition to a free rental sector, while demand continues to grow, pushing rents historical highs.

At the same time, most of the government-built low-cost housing colonies and villages were destroyed, reducing housing options for low - and middle-income countries.

Nakheel, the other government-owned developer, has set up International City - perceived to provide affordable housing.

The current high rents are good enough for developers to return to the rental market. "Investors will return to the rental market when income rises to the same level as that of the freehold market," said a top property broker.

Bin Braik said, "Although we are mostly engaged in built-to-sell business, rental units gives us a continuous flow of guaranteed returns and provides us the necessary stability. We are not only building assets, we are also building values for Dubai property."

Damac's buyback plan angers investors

Investors in Damac's Palm Springs project on Palm Jebel Ali are furious at being 'bought off' by Damac due to project alteration.

Damac is now trying to 'buy back' its Palm Springs plot on Palm Jebel Ali five years after its launch.

Damac cannot go ahead and build the development without incurring a significant loss as the master-developer plans have changed.

Hussain Sajwani, chairman of Damac Holding said in a statement, "Damac Dubai Property has been advised that the master development of Palm Jebel Ali has been redesigned and the Palm Springs plot will not be delivered. Due to redevelopment of theprojects, the building forming the Palm Springs development cannot be placed on the re-allocated plot and, as an output, the Palm Springs project has been annulled.

"In view of this, Damac Dubai Properties will offer customers an opportunity to realize the investment made in Palm Springs and transfer the monies to any other project in the Damac Dubai Properties portfolio at a discounted price 15 per cent below current market value. As an alternative, Damac would reimbruse monies paid with interest."

However, by investors words, Damac is only offering six percent per annum on the sum invested.

Dubai Property Market - Buy or rent?

Real estate market in Dubai for a major economic force in the emirate. All of us know about the state of the art Dubai property projects comes every now and then. Real estate market in Dubai has experienced a growth spurt in recent years. At least once abroad, moving to this city wonders ponder on the question of whether to buy or rent in Dubai.

Foreigners, as a large proportion of the population of Dubai. When you consider that the real estate market in Dubai is very much in demand, they are often caught in the dilemma of a mortgage payment for personal property, or go for the rent is usually lower than the former.

Looking back at Dubai property market

2002: For the first time in the history of the Dubai property market, it was possible that foreign nationals to own freehold property in Dubai. At that time, property prices were relatively lower than in the current scenario in Dubai. Consequently, with lower mortgage to pay, those who bought property at that time was a wise step indeed.

From 2002: Due to cheaper real estate prices, more and more people went to the acquisition of real estate in Dubai. As a result, there was a great demand (even more than supply), in turn, the prices escalated. Currently, the rents are typically lower than the monthly rates.

Buy or rent property in Dubai - some tips

• stay of 3 years or even less time: Do not buy property in Dubai, if you stay in the emirate for three years or less. Rental property would be a better solution for you. A number of projects will soon get completed in Dubai rents to fall a bit.
• stays of longer than 3 years: If you stay in Dubai for more than three years, we can certainly consider buying a property in Dubai. Dubai real estate experts believe that the market trends will be reversed in a few years. So buying property in Dubai now could be a profitable step in several years. Choose a longer period for paying back your mortgage, so it is not a crunch in your pocket. One could even rent this property later.

Points, which help one decide whether to buy or rent in Dubai

• How long do you want to remain in Dubai?
• What kind of home do you want to go?
• If you want your money invested?

These points are paramount enter, make sure that you have an answer to your worries shot. Because of the dynamic nature of real estate in Dubai,

Shaikh Holdings awards Dh412m Sanctuary Falls project to Arabtec

Shaikh Holdings, a leading Dubai-based real estate investment and development company, has awarded Arabtec Construction LLC a Dh412 million contract to commence construction of its prestigious Sanctuary Falls villa development, a landmark boutique community in Jumeirah Golf Estates.

In awards Dh850 million Sanctuary Falls project, aimed at creating a new landmark in the community as a first resort-style golf residential community in the UAE property.

Launched in July 2007, the development has already received strong interest from both local and international Dubai home buyers and has been awarded "Best Golf Development" in the Arabian CNBC Property Awards 2007.

"We have taken our time to research Dubai property and nominate the best quality of contractors and subcontractors, as our partners in the development of the Sanctuary falling," said Emran Sheikh, Director General, Sheikh Holdings.

The community features a collection of 96 resort-style villas overlooking the Earth golf course, designed by Greg Norman.

Arabtec Holding Co, the UAE's largest construction company at market value, said yesterday it expects revenue this year will increase by 40 per cent, slower than in 2007.

"We expect revenue in 2008 to grow by 40 per cent to Dh6 billion ($ 1.63 billion) ... is determined more projects," CEO Riad Kamal said Reuters.

Revenues rose 52 percent last year to Dh4.27 billion and the profit more than doubled to Dh535.2 million people, according to Reuters.

"Profit growth depends on many factors, such as the cost of Dubai building materials, wages and possible delays in deliveries, which are out of our hands," Kamal said.

Hydra joins hands with Kuwaiti developer

UAE-based Hydra Properties, along with Kuwait-based Al Aqeelah Leasing, Finance and Investment Co., and Tassa-meem Real Estate Co., on Tuesday announced a partnership agreement to establish Hydra Al Aqeelah Development Co.

The new company will develop Aqeeq Al Marina, mega real estate company located in Kuwait Khairan resort town.

Riyadh Al Ali, vice-president of Al Aqeelah and chief executive officer of Hydra Properties Suleiman al-Fahim, stressed the importance of this new partnership, which means a major turning point in Kuwait in real estate development, especially after Khairan project is one of the the largest real estate developments in the region.

From the first day of the company's establishment, Al-Ali said officials for the project, takes full responsibility for the development of the real estate sector through its subsidiary company, Al Aqeelah International Real Estate Co, which has been designated as one of the major companies in charge of project.

"This project embodies the combination of the ultimate in luxury and ultimately in aesthetic design, based on international specifications, which are derived from the concepts held by Al Aqeelah and Hydra Dubai properties in the construction of buildings on the basis of innovation and creativity, creating the desired goal, which at par with international standards, "said Al Fahim.

The project consists of a major commercial complex, a residential Dubai property complex and a major luxury hotel. The project's size is approximately 50,000 square meters.

Dubai Metro to be integrated with other modes of transport

Serco, a UK-based international service company, has been awarded the operation and maintenance contract for the Dubai Metro for the first 10 years.

The company will provide operation and maintenance services to all assets of the Dubai Metro system, including trains, railway tracks, stations and associated facilities during the duration of the contract.

The company will also provide transit Dubai property services to integrate other forms of transports with the metro network, operate the metro revenue system and collect revenues by selling and top up of metro cards on behalf of the Dubai Roads and Transport Authority.

The company will be responsible for the Dubai property operation of the metro company for 10 years and serve for seven years as the first three year maintenance will be provided by DURL Consortium - contractors for construction of Dubai Metro.

"The operator was finalized after eight months of hectic work," said Mattar Al Tayer, chairman and Chief Executive of RTA.

The selection of Serco comes after a public tender floated by the RTA, to which several global companies specializing in rail operation and maintenance had applied. "Following analysis of submitted bids, the offer of Serco Co. was nominated as the best bid. The Serco has experience in operating and maintaining a number of metro and rail lines in the UK, Denmark and Australia,'' said Al Tayer.

Nuclear energy will fuel growth

The UAE's decision to fall back on nuclear energy for peaceful use arises from its understanding of how it could play a constructive role in the development process of the country. By opting for the nuclear option, the country has given tone for Dubai building the future. But more importantly, in doing so, the UAE has also detected the framework within which it will be pursuing the project.

The UAE Cabinet has accepted nuclear energy program, to be named as the Nuclear Energy Authority. Intended with an initial capital of Dh375 million, the agency would look into the best means of using nuclear energy for future Dubai property and domestic electricity supply and demand.

"The complete details of the proposed nuclear program will soon be published in line with the UAE's keenness to deal with the international community transparently," said Foreign Minister Shaikh Abdullah Bin Zayed Al Nahyan.

The reasoning behind having such a program complies with the overall plans of the government and as a result, facilitates for it the means to support the unprecedented economic growth in the country. The UAE's initiative and the means with which it is implemented should set the precedent for others to follow.

Sorouh to sell $1b in asset backed bonds

The United Arab Emirates' Sorouh Real Estate is going to sell $1 billion of asset backed securities that comply with Islamic law during the second quarter to help fund expansion, a company executive said.

The bonds, like traditional Islamic bonds known as sukuk, are asset backed. But unlike sukuk, they allow buyers direct access to the underlying asset.

"It is going to be a unique sukuk, it will be an asset-backed securities (ABS) sukuk which will be launched in the second quarter," the executive, who declined to be named, said yesterday. He said the worth of the issue would be $1 billion.

Sorouh Chief Executive Mounir Haidar said in February Dhabi's largest property developer by market value was close to finalizing a $1 billion borrowing program to finance expansion in Dubai property.

Haidar has said Sorouh's projects could triplicate to Dh120 billion ($32.68 billion) in coming five years.

Asset-supported bonds can receive a higher credit rating than the issuer of Dubai Property, especially when the bonds are based on strong underlying revenue-generating assets.

The agreement also sequester the issuer from creditors should instability hit the assets, and the bond holders are not known to the issuer's future actions. Citigroup and three Abu Dhabi-based banks are arranging the sale in Dubai property, the executive said.

The securitization market had the potential to be worth $250 billion by 2010, said Nasser Al Saidi, chief economist of the Dubai International Financial Centre.

Dubai builds world's largest water reservoirs

Construction has begun in Dubai on what will become the world’s largest pre-stressed concrete drinking water reservoirs to help meet escalating demand brought on by multi-billion dollar property projects, a statement said yesterday.

The three giant rectangular reservoirs, each with a capacity of 60 million imperial gallons per day (MIGD), are being constructed in the Mushrif area of Dubai by the Mammut Group under a $168.6 million (Dh620 million) contract.

The Mushrif reservoirs are part of a Dh12 billion ($3.3 billion) package of infrastructure projects recently voiced by Dubai Water and Electricity Authority (DEWA) designed to meet the water and electricity demands of all existing and planned projects in the Emirate.

“On completion the three reservoirs will contain a total of 180 million gallons of drinking water, marking a major milestone in Dubai's expansion of its utility infrastructure,” Behzad Ferdows, chairman and CEO of the Dubai-headquartered Mammut Group, said in a statement.

Mammut Group is one of the Middle East's largest industrial contracting and manufacturing companies, the main advantages in the production of pre-engineered steel and pre-cast concrete. The company employs 4000 people and has 10 offices worldwide and six plants.

The three giant Mushrif reservoirs will:

Cover a total area of approximately 165,000 square meters
Measure 372 meters in length, by 169 meters in width and 5.6 meters in depth
Consume 270,000 cubic meters of concrete
Use 27,000 tonnes of reinforced steel

Danube aims for Dh1b sales revenue this year

Danube Building Materials, the leader in construction, building materials, and shop fitting industries, has announced that it aims to generate Dh1 billion in sales revenue by the end of 2008, following a highly successful performance in 2007.

Having reached a 72 per cent growth in its annual earnings last year, the company has also scheduled that it could double its annual returns to touch the Dh2 billion mark by the end of 2010, based on the current uptrend in its overall growth and among the rapid expansion of the construction industry in the region.

The company's growth has been the result of its focus on establishing facilities in high potential production locations, such as its newest factories in Lianyungang, China and in Bahrain, which supply a significant bulk of the high quality products for its regional and international clients.

In the UAE, Danube has undertaken a number of significant projects, including the delivery of its new Formica toilet cubicles to Dubai Mall, in addition to over Dh200 million in new projects in Ras Al Khaimah, Umm Al Quwain and Dubai Techno Park.

At present, the company operates from its head offices in a 285,000 square feet facility in Jafza north and 365,000 square feet area in Jafza south, which includes warehouses, logistics, kiln drying and a factory. Danube currently maintains eight branches in the UAE, in addition to its global hubs in Oman, Bahrain, China and India.

Cement imports by Dubai soar 74% in 2007

Dubai's cement imports increased 73.6 per cent, or 1.26 million tonnes, to 2.96 million tonnes in 2007, as a result of the construction boom.

The imports are valued at Dh672 million, according to the Dubai World Statistics Department (DWSD).

Dubai imported 1.70 million tonnes of cement in 2006.

Nassim Al Muhairi, acting head of DWSD put the value of Dubai's cement imports in 2007 at around Dh672 million. Cement imports were worth Dh374 million in 2006.

Al Muhairi attributed the increase to Dubai's construction boom and the increase in oil prices. "Major projects such as the Dubai Metro mean that Dubai's cement imports will continue growing at even higher rates in the coming years," she said.

In the UAE also imported nine million tons of steel in 2007, a 36 per cent increase each year, compared with 2006. In the UAE, took ninth in the world, the top ten importers of the steel industry in 2007, according to the UK on the basis of Iron and Steel Statistics Bureau.

On the recent abolition of cement and steel import duties, Hussain Sajwani, chairman of Damac Holding, a leading property developer, said the move bodes well for UAE's construction industry.

"Steel demand, projected to increase from five million tonnes in 2007 to 10 million tonnes in 2010, coupled with soaring cement prices will help master developers like us to be in a better position to keep control over soaring project costs. This move will also eliminate the emerging black market for cement in the UAE," said Sajwani.

Essential telephone numbers in UAE

999, the emergency number in the country, is one of the busiest numbers in the country, naturally, but often for all the wrong reasons.

Click here to download the Gulf News essential numbers guide for Dubai and Abu Dhabi (pdf)

Click here to download the Gulf News essential numbers guide for Sharjah (pdf)

Many residents call 999 seeking a taxi or to find out the traffic situation. Hundreds of trivial and inane calls are made to 999 every day, desturbing the work of police on emergency duty.

A staggering 573,471 calls were made to 999 in 2007 and these were not emergencies. Most were enquiries on speed limits on roads, location of certain departments, traffic fines, transactions related to the Naturalisation and Residency Department and complaints against taxi drivers.

Lieutenant General Dahi Khalfan Tamim, Chief of Dubai Police, recently said: "Nobody knows the amount of effort that goes into answering calls on 999. Therefore, people should only call 999 in case of emergencies which require the immediate presence of security or rescue personnel," he said.

There are files to download in an attempt to offer easy access to information of the important telephone numbers in the country

Real estate stocks lead plunge in UAE last week

UAE stocks lost Dh13.3 billion of market capitalization this week on account of Dubai's Dh11.2 billion in losses.

The Dubai Financial Market's general index plunged 3.05 per cent to 5,578.19, and Abu Dhabi's benchmark retreated 1.18 per cent to 4,676.47.

The real estate sector was the biggest loser, dragged down 3.9 per cent by Emaar Properties, which fell 4.6 per cent to Dh11.35. Sorouh Real Estate plummeted 3.4 per cent to Dh10.05 in Abu Dhabi, according to the weekly report of Amanah Capital.

The energy sector followed, dropping by 3.8 per cent. Record oil prices failed to lift the listed energy companies. Abu Dhabi National Energy (Taqa) fell 3.3 per cent to Dh3.47. Aabar Petroleum and Dana Gas recorded tangible losses as well, retreating 8.3 and 3.1 per cent to Dh3.66 and Dh2.19, respectively.

The telecom sector ended the week in the red as well on account of etisalat's decline by 1.2 per cent to Dh23.80.

DFM's shares dropped 3.4 per cent to Dh5.65, losing Dh1.6 billion in market value and dragging the financial sector's sub-index down 2.5 per cent.

Experts fear overheating in region's property market

The property market in the region is in danger of becoming overstretched, industry officials, whose remarks were given on condition of anonymity, said at a recent conference in Dubai.

"If the costs get too high, Dubai won't be so attractive," the chief executive of a real estate project development in Oman said.

Dubai's real estate dealings equaled $18 billion in 2006, and current estimates reflect a staggering $158 billion is invested in the sector just in Dubai.

A Financial Times outlook has showed Dubai is 'at the cutting edge' of world property markets, with average property values shooting up by 150 per cent in the last two years. In contrast, the UK's property value increased by 240 per cent over ten years.

A UAE-based developer said, "There's a lot of pent-up capital looking closely at this region, but returns will be whittled away based on escalating costs."

Over the last two years, Dubai has registered rental costs for premium office space more than double, with prices hitting $1,172 per square meter in some cases. In 2005, this figure was about $538.

The main driver behind Dubai's property boom is the ever-growing population, is going to reach 1.9 million in 2010. Low-cost property, costing Dh500 per square foot, is in high demand, but due to increasing costs of materials, investment in is losing its appeal.

A managing director for an international consultancy firm said, "The problem in Dubai is that there are a lot of inexperienced developers, and they are building too much, too quickly and it just can't be sustained."

UAE cost of housing to rise further amid liquidity surge

The cost of housing, which represents a heavy component within the overall inflation rate, will rise further, as the rent caps introduced in Abu Dhabi and Dubai do not apply for new contracts, in contrast with Qatar which flattened the rents for next three years.

"The rents increased in 2007 by 18 to 19 per cent, and this will continue in 2008. Meantime, banks' assets increased by 40 per cent, accelerating money supply," said Dr. Giyas Gokkent, head of research at National Bank of Abu Dhabi (NBAD).

The reduction of the UAE key interest rate by 75 basis points from 3 to 2.25 per cent will boost economic activity in the nearest term, but it could lead to higher inflation and serious results in the longer term, economists said.

Nonetheless, international oil prices are supply some balance, as they tend to surge up in tandem with the declining dollar.

"We are looking at average oil prices of $95 to $100 per barrel in 2008, and this will increase the oil revenues dramatically by about 25 per cent to about $95 billion, compared with around $76 billion in 2007," Dalton H. Garis, associate professor at Adnoc's Petro-leum Institute, said.

"But the increasing revenues will only mean that the economy will continue to over-heat as the pace of growth will be too fast to tame," Gokkent said.

Central Bank Governor Sultan Bin Nasser Al Suwaidi had a meeting with the chairman and representatives of the Emirates Banks Association yesterday, where the governor convinced the delegation that the local banks enjoy a strong financial position, taking into consideration the availability of liquidity.

Such ample liquidity will only force banks to be more aggressive in their lending policies, adding more pressure on prices of goods and services.

450 additional radars to be installed on Dubai roads

Police will soon install 450 new radars on Dubai roads, the chief of Dubai Police stated.

Nowdays, there are 350 radars on Dubai roads and there will be an additional 450 radars on the roads to keep in rules speeding and reckless driving. The statement came as part of a coordination meeting between Dubai Police and the Roads and Transport Authority (RTA).

Lieutenant General Dahi Khalfan Tamim, Chief of Dubai Police met with Mattar Al Tayer, Chairman of the Board and Executive Director of the Roads and Transport Authority (RTA).

Lieutenant General Dahi underlined the importance of the meeting, especially since the two parties are strongly related to serving society. He stressed the importance of increasing radars on the roads.

The participants also underlined on the issue of vehicles with out-of-date registrations which amount to 115 000 vehicles. The two parties agreed to stop the transaction of vehicles with expired registrations and give their owners one month to rectify their status.

Saffar buys majority stake in John Charcol

Saffar, a regional financial services company, recently purchased a major stake in John Charcol Dubai, an independent mortgage broker.

The agreement, which was signed earlier this month, will see Saffar take a 60 per cent majority stake in the company, with the rest being kept by the company founders.

The deal is part of Saffar's strategy to pursue business opportunities in the real estate and home financing market.

"John Charcol is a leading player in the mortgage brokerage industry. With John Charcol Dubai, we hope to leverage the wide range of opportunities available in the regional property finance market," said Mishaal Al Usaimi, CEO of Saffar."

"We are confident that the unrivalled expertise of John Charcol, combined with Saffar's regional knowledge, will provide the basics for the development of John Charcol Dubai as the leading regional independent mortgage brokerage. We are highly proud to be a part of rising this dynamic company on both a local and regional level."

Established in 1974, John Charcol is widely regarded as the UK's leading independent mortgage adviser.

ICD likely to clinch Colonial deal soon

A deal that would see Spanish real estate company Colonial taken over by Investment Corporation of Dubai (ICD) was seen closer on Tuesday, although the parties still have to reach an agreement as a deadline looms, sources familiar with the negotiations said.

Negotiations between Colonial, ICD and three groups of creditors are continuing in Madrid, London and Dubai. ICD's time-limit for striking a deal with the banks expires on tonight.

The negotiations are "making progress", one of the sources said, but added "there are many parts involved that need to be agreed".

Colonial is attempting to win over three sets of creditors so the sale can go ahead.

One is the group of international banks and local savings banks that lent former Chairman Luis Portillo and the Nozaleda family the cash to supply their purchase of Colonial's shares.

Then come the four banks behind a 7.2 billion euro ($11.4 billion) syndicated loan - Goldman Sachs, Eurohypo, Calyon and Royal Bank of Scotland (RBS).

A third set includes lenders to the company itself, including Spanish savings banks, one of the sources shared.

Banks involved in the syndicated loan are now more willing to reach agreement, provided other lenders also agree on waivers and other actions being discussed, one of the sources said.

"The banks in the syndicated loan won't make concessions unless the local lenders do," the source said. "I think the lenders want the company to survive, it's in nobody's interest to destabilise the company."

Colonial stock rose three per cent to one euro by 1251 GMT.

The company is being advised by Lazard, while Morgan Stanley is advising ICD.

New airline for Dubai

His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE has instructed - in his capacity as Ruler of Dubai Property - the competent authorities to set up a new airline company to cater for the growing passenger traffic from and to the UAE.

Shaikh Mohammad envisages the new aviation company as a bridge for love and interaction between the UAE property and other sisterly and friendly countries.

In setting tariffs structure, the company will receive financial and living conditions of the passengers in mind.

Shaikh Ahmad Bin Saeed Al Maktoum, head of Dubai Property Civil Aviation and Chairman of Emirates Group, said Sheikh Mohammed in instructions will be put in place with immediate effect.

Services will be cheaper because of the Shaikh Mohammed’s effort to enable low-income passengers reunited with their families and relatives at home, said Sheikh Ahmad.

Shaikh Mohammad named Ghaith Saeed Al Ghaith as CEO of the new airline company.

Airport tunnel to be closed due to construction for Dubai Metro

Dubai Airport tunnel will be still closed between 1 am to 5 am from March 15 to April 14 due to construction work for Dubai property Metro on the airport road.

“Entry and exit points of the airport tunnel from Nadd Al Hammar Road towards Al Qusais will remain closed,” said Engineer Hussain Al Banna, Director of Right of Way Services Department at the Dubai property Roads and Transport Authority (RTA). He said that tunnel will, however, will be open on public holidays—Friday and Saturday.

“Motorists are requested to use alternative roads designated by the RTA to avoid any traffic congestion and take all pre-caution during the period of tunnel closure.

He said that motorists from Nadd Al Hammar and business-Bay Bridge in the direction of the property tunnel could use the diversion road in the Emirates to go in the direction of Al Qusais and the Sharjah Airport and take the road to go to Deira.

He said that tunnel closure was necessary to make way for the Dubai Metro viaduct spans. “The closure time will ensure minimum traffic disruption,” he added.

UAE markets fall in line with global slide

The UAE stock property markets fell on Thursday in line with the downside plaguing the global financial markets impacted by lifetime-high oil prices and weakening dollar this week.

During the week, high volatility in share prices was witnessed on the bourses in Abu Dhabi and Dubai property.

As a result, the Emirates Securities general index fell 0.90 per cent to 6,008.17 at the close of trading from a day before.

Market analysts, however, reiterated that the foundations are strong internal exchanges, and it will be a bull run in the next few days, based on the assessment that after mid-March, a major market move the company will be closer to their reporting first quarter performance.

On the ADSM, the fall was led by the real estate sub-index, which fell 2.08 percent, followed by consumer sub-index, which fell 1.40 percent and energy sub-index was down 1.24 percent. Shares in the amount of more than Dh577.97 million sold during the day on the market, with the volume of shares exceeding 94.76 million people.

On the DFM, more than 153.36 million shares valued in excess of Dh801.38 million were traded. Deyaar Development's were the most actively traded, followed by Dubai property Financial Market shares. The day's main gainer was Arig, whose shares rose 6.39 per cent to Dh3.83. The day's main loser was Ware-Agility, whose shares declined 10.89 per cent to Dh18.00 at close.

Emirates to fly to Los Angeles

Emirates property, the Arab world’s biggest airline, said it will launch flying to Los Angeles from September.

The West Coast city will be the airline’s third destination in the US.

Operating daily, the service will be the first non-stop operation connecting Dubai to Los Angeles.

Emirates will fly its Boeing 777-200LR on the route, offering 266 seats in a three class configuration and will provide up to 10 tonnes of cargo capacity from the US city.

“Los Angeles represents Emirates’ commitment to the American property market. We have evaluated the US for widening opportunities and have carefully tested our existing services in Houston and New York- both of which have been very successful.

"We look forward to recreating this success by connecting Los Angeles to Dubai property and beyond,” said Shaikh Ahmad Bin Saeed Al Maktoum, Chairman and CEO of Emirates Airline and Group.

Nakheel unveils centrepiece of giant Waterfront development

Nakheel has revealed the master plan for Waterfront City, the centrepiece of Waterfront, the largest urban development project in the world.
Waterfront City will have a residential population of about 92,000 and a working population of 310,000 people. Covering more than 330 hectares, Waterfront City will comprise a central island surrounded by four districts - the Boulevard, Madinat Al Soor, the Resort, and the Marina.
Located on the west coast of Dubai property, the whole Waterfront development will transform 1.4 billion square feet in the desert and at sea in the community, in a total population of 1.5 million people.
Matt Joyce, Nakheel managing director, Waterfront, said: "Waterfront City is set to form the 'heart' of Waterfront and the master plan has been designed in such a way to cater not only for businesses, but for Dubai property residents and visitors alike. Each of the five districts making up Waterfront City possesses its own individual character and is vital for the promotion of a diverse and unified city.
"It will have a density similar to that of Manhattan, and with that in mind, commerce, retail, culture, and private accommodation will be overlapped to create a compact city centre property."
The central area of the island, a grid of five streets by five streets, will be the determining element of the construction Waterfront City, it will create a walkable distance between blocks, easing the flow of traffic passing through the town. For maximum shading and climate control in the city, the higher the potential of the masses will be focused on the south side, as well as ensuring the efficient use of wind flows for cooling. Each city block will be lined arcades and planted with trees.