United Arab Emirates - PM Communications

Photo of Saker Falcon: International Wildlife Consultants (UK) LtdUNITED ARABEMIRATESA leading global oil producer, the United Arab Emirates has used its wealthto become the most competitive and fastest growing economy in the Arab worldIt is now almost half a century since the defining event in the modernhistory of the area that is now the United Arab Emirates.Thatwas,of course,the discovery of oil beneath the coastal waters ofAbu Dhabi by the British in 1958. Two years later, oil was foundonshore, and in 1962 the first exports of crude brought the trickleof what was to become a flood of revenue.Over the decades,oil has brought untold wealth and transformeda society that had remained more or less unchanged for centuries.The British protectorate came to an end in 1971, and it was in thesame year that the six sheikhdoms – Abu Dhabi,Dubai,Sharjah,Umm al-Qaiwain,Ajmanand Fujairah – formed the UAE, which formally became independent in December. InFebruary 1972, they were joined by the seventh emirate, Ras Al Khaimah.The dynamic force behind the subsequent political,economic and social developmentof the country was Sheikh Zayed Al Nahayan of Abu Dhabi, who initially inspired theestablishment of the federation,and became its first president.His long rule,ending withhis death in 2004, saw the country’s oil wealth channelled into nation-building, transformingthe UAE into a modern state. Sparsely populated desert kingdoms inhabitedby nomads, herdsmen, fishermen and pearl divers have become world-class cities bristlingwith skyscrapers, banks, luxury hotels and shopping malls.Where once there wasPM COMMUNICATIONSREPORTING3rd November 2007nothing but sand and scrub, now there are wide tree-lined boulevards,lush gardens and pristine golf courses.The population hasswollen to an estimated 4.4 million, 80 per cent of whom are expatriateworkers.It is petroleum,of course,that has fuelled this remarkable transformation.TheUAE possesses the fifth largest oil reserves in theworld, and the fourth largest reserves of natural gas. Production isaround 2.8 million barrels of crude per day, and there are plans toraise it to 4 million bpd by 2010.However,it would be wrong to assumethat the economy of the UAE rests entirely on a single, ultimately unsustainable,economic resource, vulnerable to the vagaries of the international market. Investmentand diversification are today’s guiding principles, and have launched a new era of development.Sheikha Lubna Al Qasimi, Minister of Economy, sums up the choice that had to bemade. “This is a small nation and it has wealth of oil,” she says.“We could either sit onour oil wealth and become a social welfare society, or we could expand our economicbase by attracting foreign investors and creating opportunities for them, becoming aglobal player as well.” Oil, she points out, does not create jobs, but the wealth from oilcontinued on page 2ABU DHABI/2 DUBAI/6 RAS AL-KHAIMAH/9 UMM AL-QAIWAIN & SHARJAH/12AJMAN/13 FAJAIRAH/14 TELECOMMUNICATIONS/15Distributed with the Daily Telegraph. Produced by PM Communications who take sole responsibility for the contents

INTRODUCTION / 2UAE 3rd NOVEMBER 2007continued from page 1does.“By judicious use of our oil wealth we havedeveloped an excellent physical infrastructure,acompetent administration and an educated population.Alot has been done in terms of diversifyingthe economy in a number of sectors, includingtourism, finance, manufacturing and theservices sector in general.”Last year, UAE recorded a nominal – unadjustedfor inflation – GDP growth rate of 23.4per cent,with an overall nominal GDP of around£80 billion.The contribution of the non-oil sectorwas 62.5 per cent,driven principally by constructionand tourism. The finance,manufacturing,transport, telecommunications, healthcareand education sectors are all expanding. Therehas been a marked increase in non-oil exports.The free trade zones are booming,and the countryhas a rapidly increasing role as a re-exportand distribution centre.A report in April 2007by the World Economic Forum ranked the UAEas the most competitive economy in the Arabworld and the 29th most competitive globally.In addition to reinvestment of petrodollars,a major factor in the development of the UAEin recent years has been the tremendous increasein the amount of foreign investment cominginto the country. The UAE leads the MiddleEast region in attractingFDI, ranking fifteenthin the worldout of 144 economiesin UNCTAD’s FDIperformance index.IMF figures in 2006 indicatedan inflow of£6.3 billion comparedwith £4.5 billion inSHEIKHA LUBNAAL QASIMIMinister ofEconomySAEED ALMANSOORIMinister ofGovernmentSector Development2004. This investorinterest is promptedby political stability,dramatic economicgrowth and thefavourable businessenvironment that thegovernment has strivento create and continuesto improve.The federal governmenthas showndetermination to raiseits own game,throughmoves towardsgreater openness,effectivenessand efficiency.Arecently unveiledgovernmentstrategy plan calls formodernisation of thecivil service and improvementsin government services to bringthem in line with international standards.Specialemphasis will be placed on education,healthcareand judicial services.E-government programmesand coordination between federal and local authoritiesare to be strengthened.Sultan Bin Saeed Al Mansoori,who heads thenew Ministry of Government SectorDevelopment,says that an evaluation has beencarried out at every ministry. “We have lookedat the services provided to the public accordingto their standards,their speed and the waythey can combine with each other.We have alsolooked at the implementations of technologyand how that can enhance the serviceprocess that we have.” ●ABU DHABIONE OF THE WORLD’SRICHEST CITIESPLANS ITS FUTUREOpened in 2005, the Emirates Palace Hotel is the most expensive hotel ever built. Its many attractions include more than 200 fountainsThe source of most of the UAE’s oil wealth, Abu Dhabi isplanning to develop its capital as a major world cityOne of the most remarkable symbols ofAbu Dhabi’s wealth is the recentlyopened Emirates Palace.The most expensivehotel ever built, its construction cost some£1.5 billion.The interior is decorated with goldand marble and 1,000 crystal chandeliers.Twenty thousand roses are displayed in itsrooms and public spaces every day. There isan archway clad in Italian stone that is largerthan the Arc de Triomphe in Paris.The GrandAtrium, the largest of the hotel’s114 domes,is higher than the dome of St Peter’s Basilicain Rome, and in the 600 acres of exotic parkgrounds more than 200 fountains play.It is the kind of place you might expect tofind in one of the richest cities in the world.However, you might not expect one of theworld’s richest cities to be located in thedesert.Welcome to Abu Dhabi City,the capitalof the emirate of Abu Dhabi, the federalseat of government of the UAE, and thecountry’s oil centre.Located on a T-shaped island jutting into theArabian Gulf where, within living memory,there once stood a small settlement of reedand mud-brick huts occupied by pearl fishers,Abu Dhabi City has an estimated populationof 1.8 million,the majority of them expatriateworkers from countries like India,Pakistan,Egyptand the Philippines. Now mega developmentplans are afoot to transform the city into abenchmark for 21st century world capitals.The largest of the seven emirates, AbuDhabi covers around 87 per cent of the landarea of the UAE and sits on 94 per cent ofthe country’s oil – about 10 per cent of globalreserves.In addition,it plans to become oneof the top exporters of natural gas, of whichit has 5 per cent of the world’s total. Accordingto Moody's Investors Service, the emirate’snominal GDP per capita reached £30,900 lastyear, the third highest in the world.Overflowing with petrodollars as a resultof the high international price of oil,Abu Dhabialready has the world’s largest state-ownedinvestment fund to play with.The economy isexpanding rapidly, and according to a recentreport from the Abu Dhabi Chamber ofCommerce and Industry,the emirate is set toattract a total of more than Dh1 trillion in localand foreign capital.Less well-known than its neighbour Dubai,Abu Dhabi has big plans to raise its profileand become an internationally recognised destinationfor business and tourism. Billions ofdollars worth of real estate projects areplanned and construction activity in the emirateis predicted to overtake that in Dubai bythe end of the decade.Foreign direct investment will make a crucialcontribution to Abu Dhabi City’s hugelyambitious urban development plans forthe next 20 years. The recently unveiledmasterplan – Plan Abu Dhabi 2030 – calls forestimated investment totalling £80 billion totransform the city into a major world capitalin which 3 million people will live, workand enjoy their leisure.The plan envisages two main complementarycores.The Central Business District will bethe centre of finance and commerce and themain employment hub.Centred on Al SuwwahIsland,it will unite into a single area the currentcommercial districts of Al Suwwah Island, AlReem Island and Port Zayed,which is to be relocated.Tenor more bridges will knit Al Suwwahand Al Reem Islands into the fabric of the city.Local and federal government offices will beconcentrated in a new Capital District, to belocated on the mainland to the east of thecity, focusing the functions and image of governmenton a single iconic precinct as in othergreat capital cities around the world.These two core districts will be the majorcentres of office space.A smaller employmentand residential area will be created in the Al BateenAirport redevelopment zone in the GrandMosque District, at the southeast side of AbuDhabi Island,and the Lulu Island District will becontinued on page 4Produced by PMC Ltd, who take sole responsibility for the contentsPMC Ltd. Empire House, 175 Piccadilly, London W1J 9TB, Fax: (020) 7409 2871Team responsible for the report on the UAE:ALEXANDER DE LA MARE & LAILA BASTATIThis and other PM Communications reports can be read online at www.pmcomm.com

ABU DHABI / 4UAE 3rd NOVEMBER 2007Expanded airportwill offer top-flightexperienceInvestment totalling £80 billion is required to take Abu Dhabi into a new eracontinued from page 2the location for residential housing units, hotels,resorts, recreational facilities and parks.Three major industrial districts are to becreated.The new Khalifa Port and IndustrialZone will be the location for heavy industryrelying on bulk materials imported fromabroad,while hi-tech industries will surroundthe Abu Dhabi International Airport, whichhas already begun a multi-million dollar transformation(see page 4).Smaller service-basedindustries will be allocated to the Mussafahand Mafraq areas, with rail and highway linksbetween all three areas.‘Our futurewill not beheld hostage touncontrolledexpansion’The city’s transit network will include ahigh-speed rail line,originating at the CentralSouq train station,connecting downtown tothe Capital District,the airport,and ultimatelyDubai. A freight rail line will link the newport,the airport,and Jebel Ali with the otherGCC countries.There will be at least twohigh capacity metro lines, and a network oflight rail,streetcars and buses that the plannerssay will ensure that no one ever has towalk more than five minutes to use publictransport.A network of grand processional boulevardsare intended to express the scale andimportance of the capital. The CapitalBoulevard is seen as a particularly importantcomponent, linking the PresidentialPalace and Emirates Palace to the new CapitalDistrict, possibly including seven high archesrepresenting the seven Emirates of theUAE,and terminating at a main capital square.A continuous framework of planted boulevardsand byways will link the communityparks and the three major City Parks, makingit possible to move around under theshade of trees and reinforcing the vision ofthe city as a garden on the shores of theGulf.Limits will be set to the growth for thecity to preserve the ecology and prevent anunending,undifferentiated sprawl through thedesert to Dubai.The masterplan has been developed underthe direction of Sheikh Khalifa bin ZayedAl Nahayan, who succeeded his father asPresident of the UAE and ruler of AbuDhabi. It is seen as the fulfilment of thegrand design envisaged by Sheikh Zayed,whowas the country’s first president.“Abu Dhabiwas built on the ambitions of the late SheikhZayed, this must be recognised and continued,”says Falah Mohammed Al Ahbabi,Associate Director, Urban Planning,Executive Affairs Authority.He emphasises that the key to the developmentof the city will be measured expansionreflecting Abu Dhabi’s sustainableeconomy, rather than the explosion ofgrowth witnessed in some other emergingeconomies.“Abu Dhabi needs to grow,andit will grow, but our future will not be heldhostage to uncontrolled expansion,” hesays.The development of the city will “respect,be scaled to and shaped by the naturalenvironment of sensitive coastal anddesert ecologies.” Land uses and buildingheights will be carefully monitored.Planned developments for Yas Island,Saadiyat Island, Al Raha Beach, Al Mina, AlSuwwah and Al Reem Island are already intrain. On Saadiyat Island, just off the coast,a £10.2 billion project is under way to turnthe emirate into an internationally recognisedcultural centre.Iconic architectural designshave been created for branches ofboth the Guggenheim and Louvre museums.The Guggenheim Abu Dhabi, designedby internationally acclaimed architect FrankGehry, will be larger than any existingGuggenheim worldwide. In addition toforming its own collection of modern andcontemporary art,it will also exhibit masterworksfrom the GuggenheimFoundation’s global collections. The AbuDhabi Louvre,a 260,000-square foot complexcovered by an umbrella-like roof, designedby French architect Jean Nouvel,willdisplay art from all eras and regions, includingIslamic art. The emirate has alsopulled off a multi-million dollar deal toborrow works from the Louvre in Parisand stage special exhibitions.The plans forSaadiyat Island also include a maritime museumand a performing arts centre.Yas Island will become a top internationalleisure destination, with world-class motorsports racetrack,a Ferrari theme park,a water park, 984,000-square foot dedicatedto shopping, golf courses, hotels,marinas, apartments and villas.The islandhas been announced as the venue for aFormula 1 race in 2009, to be called theAbu Dhabi Grand Prix. ●Innovative architecture, the latest facilities andworld-class services are promised in a showcasedevelopment of the gateway to the emirateAmulti-billion dollar programmeis under way totransform Abu DhabiInternational Airport into a topclass facility that will cater forthe emirate’s growth far into thefuture.The £3.4 billion expansionplan is designed to raise the airport’sannual passenger capacityto 20 million by 2010, allowingfor phased growth to beyond40 million per year. It includestwo new terminals,a second runway,a state-of-the-art air trafficcontrol tower and a free tradezone. Cargo facilities at the airportare being expanded to a capacity of 2.5million tons per year.The improvements are being made tocope with an anticipated surge of between12 and 15 million passengers by 2015,as therapidly developing emirate attracts largernumbers of business travellers and tourists.Abu Dhabi Airport has been experiencingan unprecedented increase in passengertraffic, and is on the way to reachingits current capacity of seven million peryear. In the first quarter of this year, it registeredan increase of 25 per cent to 1.575million, compared to 1.255 million in thesame period in 2006.The first of the new terminals will be theairport’s third – the second was opened asrecently as 2005. Due to be opened nextKHALIFA ALMAZROUEIChairman ofAbu Dhabi AirportsCompanyyear, and dedicated exclusivelyto serving the UAE’s nationalcarrier, Etihad Airways, it willhave eight gates. Next year willalso see the coming into operationof a second 4.1-kilometreall weather runway, capable oflanding wide-bodied aircraftsuch as the Airbus 380,and a 110metre high air traffic controltower able to handle up to 70aircraft movements per hour.Meanwhile work will start thisyear on construction of the airport’sflagship development,thehuge new Midfield Terminal, anarchitecturally impressive showpiece development,which is scheduled to open in2010.The innovative modern design will reflectregional architectural features suchas domes and arches, and include a checkinhall framed by a series of long span steelarches supporting a soaring roof.It is a design that will enable a quick andseamless flow of passengers, facilitated bythe latest technologies,such as e-gates withbiometric scans, automated check-in facilitiesand internet booking, paperless processing,andself-service kiosks.Initially,theterminal will have 30 gates, later to be expandedto 80.Overseeing the development programmeis the Abu Dhabi Airports Company (ADAC)which took over the running of the airportInnovative architecture is at the heart of Abu Dhabi International Airport’s expansion plan

UAE 3rd NOVEMBER 2007 ABU DHABI / 5Abu Dhabi International Airport will eventually be able to cater for 40 million passengers‘We need todeliver topnotch servicesat the highestmanagementlevel’from the Department of Civil Aviation lastyear when it was given responsibility foroperating, managing and maintaining airportsin the emirate.Khalifa Mohamed Al Mazrouei,ADAC’sChairman,says the growth and expansionof the airport at its current location,ideallylocated 18 miles outside Abu DhabiIsland, provides “the freedom to expandon an almost unlimited level. Future developmentswill grow towards the Bahrainhighway and Dubai highway, which arealso strategically located.”In order to maintain the level of serviceand ensure that there is no congestion,the new facilities have been designedto cater for 10 to 15 years expectedgrowth,he adds. “In that way wecan add future expansions without disruptingthe operations of the airport.”ADAC is working closely with EtihadAirways, whose growth it aims to facilitate.Etihad is one of the fastest growingairlines in the world. Over the past year,it has added 15 wide-bodied aircraft toits fleet, as well as 10 new internationaldestinations, including New York, KualaLumpur and Sydney.In the first six monthsof the year, Etihad carried more than 1.9million passengers compared to 900,000for the same period last year,an increaseof 111 per cent.Creation of ADAC is part of a widergovernment initiative aimed at improvingservices to support the emirate’slong-term strategies for the economy ingeneral and tourism in particular. A keyelement is the direct involvement of theprivate sector.According to Mr Mazrouei, there aremore than 100 areas of operation at theairport in which the private sector couldbe involved, ranging from air traffic controlto catering. “We assess every activityand its cost, and if the private sector cando better than us, we outsource.“We need to deliver top notch serviceat the highest management level, andthis we must do either internally orthrough the support of certain private airportoperators who have already a trackrecord of strong service levels.”ADAC has signed up Changi AirportsInternational as operations manager ofthe airport. The Singapore-based companyhas assumed management of operationsin key areas, such as terminal andapron operations, airport emergencyservices,and customer services for an 18-month term, and is also advising on theplanning of the Midfield Terminal.The airport was recently named besthub in the Middle East and Africa by theAirports Council International, an organisationrepresenting hundreds of airfieldoperators across the globe.“Our pursuitfor improvement is relentless,” saysMr Al Mazrouei.“It starts with safety and security issuesand goes all the way to the lengthof waiting time at baggage collection,how long an arriving passenger has toqueue for a taxi, through to check-intimes, immigration services, lounge,food and beverage and duty-free experiences.”●Duty free shopping to be extended■Opportunities for duty freeshopping at the Abu DhabiAirport are being greatly increased tocater for the rise in the number ofpassengers passing through. The amountof space allocated to Abu Dhabi DutyFree (ADDF), the region’s leading travelretailer by customer spend and secondby turnover, is being extended with theopening of the new Terminal 3 and thelaunch of a new 48 hour duty freeshopping concept.Sales results for the first six months ofthis year show turnover is 33.26 per centhigher than the same period last year.“We expect to cross the £49 millionmark in terms of turnover by the end ofthe year,” says Niveen Ibrahim, theADDF’s General Manager.Free trade zone to open■Establishing a free zone isintended to turn the airport intoa thriving business and cargo hub. Phase1, which will extend over 75 millionsquare feet, will come into operation inJune next year.The zone will offer world-class facilitiesand services, and a user friendlyenvironment for a wide range ofbusinesses including: aerospace andrelated activities, logistics and freight,electronics and electricals, engineeringand building materials, technology andtelecommunications, and oil and gasproducts.Clusters of amenities will be close byand expansion and redevelopment of theexisting cargo facilities will have beencompleted by the time the zoneAt around £25, average spending perdeparting passenger is one of thehighest in the industry. A new 500-square foot, 48-hour arrivals shop, afirst in the region, will permit travellersto take advantage of their duty freeallowance for up to two days afterarriving in Abu Dhabi.“We are proud to be the first in theregion to be offering this service andconvenience to passengers,” saysMohammed Mounib,ADAC’sCommercial Director.“One of the clearadvantages of the shop is that if apassenger does not take advantage oftheir duty free allowance when initiallycoming through the airport, they will beable to do so for up to two days afterarrival.”becomes operational.Companies establishing themselves inthe zone will be able to take advantageof the airport’s strategic geographicalposition on the crossroads between eastand west. Investors will benefit from 100per cent exemption from corporate tax,imports and export duties and personalincome tax.Total foreign ownership isallowed, along with 100 per centrepatriation of capital and profits.Khalifa Al Mazrouei,ADAC’s Chairmansays: “Developing a free zone is animportant part of the development andexpansion of Abu Dhabi InternationalAirport. It will ensure that the airportwill become a thriving cargo and businesshub, as well as increasing nonaeronauticalrevenues.”

DUBAI / 6UAE 3rd NOVEMBER 2007dubaiBIG PLANS FORTHE FUTUREIN THE CITY OFSUPERLATIVESDesigned toresemble abillowing sail,the Burj AlArab is theworld’s tallesthotelFamous for its iconic architecture and boomingreal estate sector, the fastest growing city inthe region has not yet run out of steamThe emirate that has most successfullycaptured international attention is Dubai– and it is easy to see why.When it comesto innovative and ambitious developmentprojects, Dubai has demonstrated an extraordinaryknack for grabbing the headlines.The world’s tallest and only 7-star hotel?That’s the Burj Al Arab, soaring to a heightof more than 1,000 feet.The world’s tallestfreestanding structure? That’s the Burj Dubai,which will be the tallest building in the worldon completion in 2009.The largest airportwill be Dubai World Central International,with an annual cargo capacity of 12 milliontons and a passenger capacity of more than120 million. The largest shopping space willbe the Dubai Mall,also under construction,a shopping colossus larger than 50 internationalsoccer pitches.The largest waterfrontdevelopment will be Dubai Waterfrontproject, which extends over an area of 31square miles.And so the list goes on. Dubailand will bethe world’s largest theme park.The three islandsof The Palm project will be the largestman-made islands – and be visible from themoon.Ski Dubai,where you can go skiing andtobogganing in the desert on real (manufactured)snow, is the world’s largest indoorsnow park.All these massive projects – and more –are the result of a highly successful strategyfor economic development by an emiratethat knows it cannot depend on oil for itsfuture prosperity and has chosen to reinventitself as a hub for business and tourism.Overthe past decade, the emirate has been highlysuccessful in building world-class infrastructureand services.Boosted by Dubai’s pioneering decision topermit ownership of freehold property by citizensof other countries,the real estate and constructionsectors have enjoyed a sustained boom.Estimates put the value of real estate under constructionin the emirate last year at £22 billion,with an equal amount at the development stage.The previously mentioned Burj Dubai will bethe centrepiece of a 500-acre, £3.9 billionDowntown Dubai development that is intendedto offer a dynamic urban lifestyle to rival thatof New York and Los Angeles in the US,the LeftBank in Paris,and the harbour areas in Hong Kongand Sydney.The gold-rush days may now be over, butrents and prices are still rising steadily, eventhough the frenetic buying has slowed. Lastyear real estate transactions reached a newhigh of £8.7 billion,an increase of 88 per centon 2005, and the signs are that for the foreseeablefuture demand will exceed supply.Dubai’s population is forecast to almost doubleto more than 2 million people by 2010,and to reach 4 million by 2017,creating a hugerequirement for new accommodation.The well-diversified economy continuesto expand at a rapid rate. Nominal GDPgrowth last year was an impressive 23 percent.Dubai now accounts for around 43 percent of the UAE’s total non-oil GDP and 28per cent of its entire GDP.Dubai’s free zoneshave made a major contribution to this growthand diversification. The emirate’s strategiclocation and excellent infrastructure makesit an ideal distribution and commercial hubfor the region.The latest economic plan,launched by Dubai’sruler, and Prime Minister of the UAE, SheikhMohammed Bin Rashid Al Maktoum, aims toachieve economic growth of 11 per cent a yearand to almost triple gross domestic productto £53 billion by 2015.The workforce will needto almost double to sustain the pace of growth.The plan focuses on developing the emirateas a business and services centre.“We

UAE 3rd NOVEMBER 2007 DUBAI / 7will focus on the strong sectors in our economyincluding tourism,trade,transportationand financial services,” explains SheikhMohammed.The contribution to GDP madeby financial services will increase fourfold to£7.4 billion from the current £1.7 billion.Dubai has firmly established itself as theUAE’s tourism hub.In 1996,the emirate welcomed1.9 million visitors. Last year, it receivedmore than 6.5 million, generatingrevenues in excess of £1.5 billion. The contributionmade by tourism to the emirate’sGDP has risen to around 30 per cent.Passenger numbers at Dubai InternationalAirport have been rising by at least 15 percent each year since 2000;in 2006,28.8 millionpeople passed through it. More than687,000 of Dubai’s visitors in 2006 arrivedfrom the UK, the emirate’s largest sourceof arrivals since 2003, constituting 10 percent of the market.The 82 per cent occupancy rate registeredby the local hotels was exceeded onlyby London and New York.There are currentlymore than 400 hotels – 100 haveopened since 1996. By 2010, the emirateaims to attract 15 million tourists annually,to have 80,000 hotel rooms comparedto the current 39,000, and to more thantriple the number of people employed bythe industry to 100,000.A major draw will be Dubailand, an entertainment,leisure and retail complex ofmind-boggling scale, twice the size of WaltDisney World Resort in Florida,that expectsto cater for a population of 2.5 milliontourists, workers and residents, once fullyoperational. Its attractions will range fromtheme parks, to culture and art, scienceand planetariums, sports and sports academies,wellbeing and health facilities, shopping,resorts and hotels. ●Sheikh Zayed Road, named after the UAE’s first presidentRocky Real Estate, welcome to DubaiOne-stop shop backed by three decades ofexperience in the Emirate’s real estate market.Dubai has seen it all,the hard times and thegood times, and the emirate’s real estatemarket is no exception. Having gone throughrapid transformation over the last decade anda half,and with opportunities being snapped upat a rapid pace,experience is an asset that oftenproves essential towards transforming opportunitiesinto success. In this sense, Rocky RealEstate definitely has an edge.Having entered Dubai’s property market in1976, Rocky Real Estate has positioned itselfas one of the emirate’s oldest and most wellrecognized and reliable real estate companies.Mr. Kiran Uttamchandani, Rocky Real Estate’sMarketing Director, explains,“Thesecret behind our successful transformationhas been moving accordingto the times.”With the one-stop shop concepttruly mastered and an array of servicesthat include buying,selling,leasing,acquisition, disposition andproperty management,Rocky RealEstate today has more than 8500individual commercial and residentialunits under management, enviableexperience within the market,and a number of close ties withfinancial institutions ready to providecredit facilities to its clients.MR. KIRANUTTAMCHANDANIMarketingDirectornot only in the real estate market, but also inevery sector of the emirate, is fantastic.Rocky Real Estate entered Dubai’sproperty market in 1976, and hassince become one of Dubai’s mostrecognized real estate companies.Could you give us an overview ofRocky Real Estate’s beginnings?Rocky Real Estate is a company that wasstarted over thirty years ago by my fatherand uncle. Dubai at that time was a completelydifferent emirate to the one we seetoday. Rocky Real Estate started long beforeall the changes that transformedDubai to what it is nowadayscame, when Dubai’s real estatesector was basically a couple ofbuildings here and there.Of course, after three decades inthe market, Rocky Real Estate hasfaced a number of challenges, asthe industry went through a numberof difficult periods, especially inthe beginning. The main thing isthat we’ve learned a lot from ourpast experiences and can todayuse our knowledge in order tooffer the highest possible level ofservice to our customers.words,we operate in a way in which our futureforecast is based on our past experiences.What is the importance of UKinvestors and real estate related firmsto Rocky Real Estate?UK investors are very representative toRocky Real Estate. It is important to highlightthat British investors are smart, sophisticated,intellectual,and they know what they want andalso how to get it.If you look at the British realestate market, which has now existed foralmost four hundred years, one can safely saythat it is highly sophisticated.I personally enjoyworking with British clients due to the fact thatthey know what they are talking about.Theyare the type of customer that is very informedabout both the internal and external market.They know how much to invest and how muchto expect as a return on the investment.Themain attractions of Dubai for UK investorsinclude a tax-free environment, the beautifulbeaches of the emirate, the weather, the lowprice of property, and the easy access to thecountry;there are over twelve flights daily fromthe UK.It could be said that Dubai offers an exceptionallifestyle and has become a kind ofoptional real estate investment market forthose who planned to invest in Spain, but whoare now looking for something new.Are there any strategies in place inorder to capitalise on the potentialBritish clients have to offer?We are currently planning to open an officein the UK towards the middle of next year,before the summer starts.Our idea is to builda structure that can provide support to ourexisting customers as well as attract newpotential clients.We believe that there are anumber of investors out there who are interestedin investing in the property market ofDubai but don’t actually know how to do so.We are looking at offering a service which isnot yet on the market where we want to offerguaranteed rental return.We also plan to createan investment fund, where we manage aportfolio of properties on behalf of our clients.What are your main priorities for thefinal semester of 2007 and the firstsemester of 2008?Our priority is to expand. Rocky RealEstate plans to expand in a smart way wherewe want to make sure that we have the rightpeople, that is, highly trained employees thatare able to provide our clients with the bestpossible investment advice. Our main prioritywill be to focus on research in order to findthe most suitable product to fulfil the needs ofour clients; we have always aimed to satisfyour clients. ●Dubai’s Real Estate sector is one thathas firmly positioned itself as a worldwideleader for investment and hasbecome synonymous with trend settingproperties and global landmarks.In your view, what is behind thedevelopment of the emirate’s RealEstate market?Talking about the key factors behind the successof Dubai is synonymous with talking aboutone person in particular, His Highness SheikhMohammed Bin Rashid Al Maktoum,Prime Ministerof the UAE and Ruler of Dubai;it is talkingabout his vision, strategies, strength, and alsohis way of decision making. One of the mostimpressive aspects of the transformation thatDubai is going through is the fact that everychange that has occurred over the last fewyears was planned over ten years ago. Thestrategy behind this unbelievable development,Rocky Real Estate offers its clients awide variety of buyer and sellerservices. Could you give us someinsight into these?The majority of our business is related toproperty management, meaning that RockyReal Estate’s main service consists of leasingout properties on behalf of our clients.Thishas been our main business over the lastthirty years and it is where most of our experienceand knowledge resides.We are a veryconservative company in terms of buying andselling.When it comes to investment, we onlyinvest in properties in which we are veryconfident.The main aspects we always takeinto account include location, the quality ofthe property, and the development in whichthe property is located.We offer our clientsonly well selected properties with the highestpossible return on investment. In other

DUBAI / 8UAE 3rd NOVEMBER 2007A paradise for horseloversTop equine-themedpark to become a majornew attraction inthe Middle EastMachhour Moukaddem says Al Kaheel will be an attraction to be enjoyed by all the familyArab traditions of horsemanship can betraced back to the eighth century andArabian horses, notable for their distinctivebeauty and stamina, have played an importantrole in warfare and sport through the ages.Al Kaheel,an equine theme park that will bepart of Dubailand, the multi-themed megaleisure and tourism development, aims to attracthorse lovers from across the world,bothas tourists and property owners.According toMachhour Moukaddem,Chief Executive Officerof Al Kaheel Equine Management,it will be themost comprehensive equine centre ever built,“the ultimate destination for horse lovers.”Covering 10 million square feet, the Dh1.6billion (£214 million) project will be an educationaltheme park and working horse farmoffering activities for all the family. Visitors willbe able to enjoy short or extended stays atthe full service luxury resort, which will featurea 150 room executive suite hotel and 100luxury chalets, restaurants and shops.An equine “edutainment park” will feature400 horses representing more than 60 differentbreeds at work and play.Weekend horsefairs will be staged with competitions,demonstrations,anda variety of family activities.A nightlyshow will feature world-class equine acts withmore than 45 performers and 70 horses.Desertsafaris will offer scenic outings through thesand dunes on horses, ponies and wagons.The park will also be home to the region’sfirst accredited world-class academy of horsemanship,teachinga variety of certified courses,andan equestrian centre with a clubhouse,stables, horse training and event areas. Anequine spa and therapy centre will have stateof-the-artfacilities for the treatment and rehabilitationof sport horses.Mr Moukaddem says that visitors to AlKaheel will have the opportunity to enjoy an“up close and personal” relationship with thehorses.“When someone comes to Al Kaheel,they will have the chance to learn horse riding,watch the equine theatre and take partin the interesting shows,demonstrations andexhibitions that will be unique to the park.“In Al Kaheel, the whole family will be entertained;kidscan go to the park,others maygo on the Desert Safari, and at night we willhave shows displaying top horsemanship.Thewhole family will be entertained in one projectthat needs a minimum of one week to beseen in its entirety.”Located in Dubailand’s eco-zone,Al Kaheelalso provides a rare opportunity in Dubai toown a home in open and natural surroundings.Not surprisingly, all 400 individually designedproperties on offer rapidly sold out.Investors saw the value of their propertiesrise by more than 25 per cent in the first sixmonths.Mr Moukaddem has no doubts thatDubailand itself will be a huge success, andsays that Al Kaheel plans on getting 3-4 percent of its tourists.“Tourists usually stay forfive to seven days, and therefore do not havethe time to see all the attractions, whichmeans they will keep coming back to visit adifferent theme park.“The following year,people who came to AlKaheel will visit another part of Dubailand andvice-versa.That is the beauty behind Dubailand;it caters to all tastes and interests.” ●

UAE 3rd NOVEMBER 2007 RAS AL-KHAIMAH / 9RAS AL-KHAIMAHTowering mountains provide an impressive setting for the emirate’s capitalEASY LIVINGAND VALUEFOR MONEYRas Al-Khaimah is reinventing itself as a primelocation for investment in business and tourismWith an attractive investment climatebacked by a proactive government thatfirmly encourages free enterprise, Ras Al-Khaimah is positioning itself as a top businessdestination, regardless of its lack of significantoil reserves.The emirate has attracted the thirdhighestlevel of project investment relative toGDP in the UAE – with a value of around £12.6billion – and accounts for a full five per cent oftotal GCC project investment.Spearheading efforts to expand the localeconomy is the Investment and DevelopmentOffice (IDO), which has laid the groundworkto attract a further £6.6 billion in inward investmentover the next few years. Ras Al-Khaimah certainly has plenty to offer investors,especially in terms of real estate, tourism andthe leisure industry.Nestling between the Al Hajjar Mountains tothe east and the Gulf to the west,the emirate’shighly varied landscape of valleys,peaks,desertsand unspoilt coastline contrasts sharply withmany other parts of the UAE.The city of Ras Al-Khaimah,the capital,is undergoingmultiple new construction projects.Key developments include RAK Financial City,which has been designed as a new hub for theoffshore financial operations of the regionalbusiness community. The almost 2,5 millionsquare feet project will include uniquely designedtowers, up to 65 storeys high, providing office,hotel and residential space.In terms of real estate, Ras Al-Khaimah ispromoting low-rise developments focused ona comfortable,beach lifestyle.The emirate offersgood value in terms of the cost of landand leasing,plus high quality living conditions.Its modest pricing in comparison to certainother parts of the UAE is a major selling point.This value for money, easy living appeal haswon over large numbers of weekenders comingfrom Dubai and elsewhere, as well as attractinglonger-term residents.Saqr Port is on the way to becoming one ofthe most modern ports in the region.Earlier thisyear a new container terminal opened with a capacityto handle 350,000 TEUs:the first phase ofa massive expansion. Phase two will see capacityenhanced to around 3 million TEUs over a periodof five years.In April,the IDO announced a new joint ventureproject with the US-based ArgentumDevelopment Company to build an InternationalHospitality Trade and Training Zone.A hub forthe global hospitality industry,it will include a freetrade zone area and a training and educationalcampus, which will position Ras Al-Khaimah asa centre of excellence in the leisure industry.The capital is not the only development hub.The huge resort of Al Hamra Village comprisesvarious sized villas and apartments offering luxuryaccommodation for both residents and weekenders.Facing out to the Gulf, it has a marinawith 200 yachting berths allowing boat ownersquick and easy access to the sailing and fishingopportunities along the coast.In fact, a variety of tourism and leisure projectsare taking shape.Some 17 miles south-westof Ras Al-Khaimah city centre,Al Marjan Islandwill be the emirate’s first man-made island venture,reflecting the Dubai influence.This almost£1 billion cluster of coral shaped islands is duefor completion in 2009.A more unusual development will be the JebelJais Mountain Resort,which will be built on oneof the highest points in the Al Hajjar Mountainrange, and will offer visitors five-star hotel andconference facilities, and even a cable car leadingto an outdoor winter snow skiing slope.To cater for increased numbers of visitors,theinternational airport is being upgraded and theemirate has launched the UAE’s fourth nationalairline, Rak Airways. What’s more, plans haveeven been announced to develop a US$265 millioncommercial spaceport for the operation ofsub-orbital flights. ●

RAS AL-KHAIMAH / 10UAE 3rd NOVEMBER 2007Resort style real estate will bringa Riviera lifestyle to the Middle EastInspired by luxurydevelopments inDubai, a majorwaterfront projectis under way inRas Al-KhaimahWork started in May on construction of the La Hoya Business Village, comprising more than 500,000 sq ft of office spaceFRANK KHOIEChairman and CEO of Khoie Properties‘The focus ison resort-styledevelopmentsrather thanhigh rise’On a man-made island off the coastline,construction has begun on the firstphase of a multi-phased, multi-billion pounddevelopment designed to bring a touch ofMonaco and Cannes to Ras Al-Khaimah. LaHoya Bay is a £400 million Mediterraneanstylewaterfront residential and leisure projectto be built in six phases on Al Marjan Island.The £88 million first phase, currently underway, consists of 1,100 freehold studio, one,two and three bedroom apartments and onsiteleisure amenities that will offer a Rivieralifestyle in the heart of the Middle East.The developer behind La Hoya BayResidence is Khoie Properties,which in Marchlaunched its second project on the island,theLa Hoya Bay Business Village, a £74 millioncommercial development.Further projects fora marina, luxury hotels and apartments arecurrently at the design stage.Frank Khoie,the company’s Chairman andChief Executive Officer,and founder of its parent,Khoie Group, believes the emirate hashuge potential for growth and describes it asthe next “hot spot” of the region. His companyis committed to investing almost £1 billionin Ras Al-Khaimah by 2010.Over the nextfive years, he expects to see at least 200,000people migrating to the emirate.Khoie Group,initially an engineering companyinvolved in the design of industrial projectsfrom electronics to machine tools, isnow an amalgamation of several companieswith global interests built up over the last 32years. Khoie Properties was established in2005.Mr Khoie acknowledges that the inspirationfor the company’s involvement in Ras Al-Khaimah came from Dubai,where palm styleisland developments with luxurious waterfrontresort homes have proved hugely popular– not least with buyers from Europe.“When I was in Dubai in 2001, I realisedthere was a huge opportunity,” he says.“Wehad done property development in Singapore,we had done property development in LosAngeles,and I have always been interested init. From 2001 onwards, we saw huge opportunitiesin the quality of funds coming hereand the potential of expanding into propertydevelopment as freehold laws permittedus to buy and develop projects. Of course,as an entrepreneurial organisation we lookedfor niche markets and niche developments,and the niche we found was Ras Al-Khaimah.”The first phase of the company’s Al MarjanIsland project, set amid white sand beachesand lush green landscapes, is due to be completedin July next year. Covering an area ofjust over 15 million sq ft, it will include 725resort-styled apartments, three swimmingpools, tennis courts, restaurants and shoppingfacilities.“RAK is focusing more on resort-style developmentsrather than high-rise buildings,”explains Mr Khoie. “They have learnt a lessonfrom Dubai;it is easy to build huge buildingsbut it is difficult to manage them.Theycreate a level of crowding that is not necessarilyattractive for tourists.Of course,Dubaiis now becoming a financial and banking corporateheadquarters, but in Ras Al-Khaimahwe believe that we should not move to imitateNew York, and should avoid a crowdedcommunity – especially with the beautifulbeaches and the blue water we have.“Tourists need a place where they cancome and relax.For this reason,His HighnessSheikh Saoud is particularly interested inkeeping RAK fairly low key in terms of development.Thefocus is on resorts,golf courses,and polo clubs, and there is a great emphasison yachting and water sports.Very fewprojects are going to include high-rise buildings;all our projects will be resort style.”Construction started in May on KhoieProperties’ £74 million project, La Hoya BayBusiness Village.Located in Ras Al-Khaimah’sfree zone area, the freehold commercial developmentwill extend over 500,000 squarefeet. The seven-storey building will offer fullyfurnished and ready-to-occupy office spaceranging from 40 square feet to 10,000 squarefeet. Amenities will include corporate andspecial event planning and organising, IT andtelecom services, tours and travel arrangements,virtual office services, video-conferencing,and on-site clinic and child care.Construction started in May.Following this, the company plans to developLa Hoya Bay Regency Hotel Apartments.Designed for guest investors, the 500 luxuriousapartments “with top class service likea hotel,and where one can live for any amountof time.The rest of the property we will rentto tourists.” After this, the company will belaunching another 800 apartments,which willbe called La Hoya Bay Pelican.“La Hoya Baywill be keeping us very busy for the next 3to 5 years,” adds Mr Khoie.British investors are high on the list of potentialpurchasers.“At the of top of our listis Britain.Next is Germany,and after Germanycomes Holland. Many of them are buying.There is also the Iranian elite who would liketo live and invest here.The UAE is surroundedby 2 billion people who find the quality of lifehere attractive to set up and start a business.“The British in general are extremely bullishabout the UAE.They have historical relationshipswith the UAE establishment. UKbusinesses have major developments here interms of property and technology,from managementto construction. The British runmany key areas of management here.They alsolove to come to the beach and have eithera second home or an investment abroad.The weather, location,a tax-free and developmentfriendly environment and generallypro-UK spirit here is always an assurance. IfI were British, I would invest here.”Within the next five to 10 years,Mr Khoieplans to establish a finance company to providemortgage financing to potential buyers.Another priority is to establish Khoie Holdingsby 2008 or 2009, and list on the LondonStock Exchange, as well as the Dubai StockExchange. ●

UAE 3rd NOVEMBER 2007 RAS AL-KHAIMAH / 11Gaining strength through acquisitionA series of deals have raised the profile of oiland gas company RAK PetroleumEstablished in Ras Al-Khaimah in 2005 tobolster local energy requirements, the oiland gas exploration and production companyRAK Petroleum is increasingly active on theglobal energy scene, as illustrated by a run ofacquisitions during the past 12months or so.In April,the company acquiredUK-listed Gulf KeystonePetroleum,an independent oil andgas outfit with interests scatteredacross the Middle East and NorthAfrica. The deal gives RAKPetroleum strong exposure toAlgeria, in particular, where GulfKeystone has signed up half adozen blocks with strong oil andgas potential. Independent estimatesof the company’s resourceholdings in the North Africancountry suggest reserves of 3.9 billion barrelsof oil equivalent in place.Earlier, RAK Petroleum gained access tothe upstream market in Oman through a £194million deal, in which it acquired the entireOmani production portfolio of IndagoPetroleum.The company also has exposureto other hydrocarbon-rich destinations suchPETER SADLERChief Executiveof RAK Petroleumas Abu Dhabi and Iran.“All these neighbouring areas are what wecall our priority one target areas for exploration,development, and production projects,”says Chief Executive Peter Sadler.Andthere is clearly an appetite for morein the longer term.RAK Petroleum is owned by amix of local and regional shareholdersfrom across the Gulf that includesboth large corporations and smallerprivate investors.The largest shareholdersare RAK Investment Fundand RAK Gas Authority. In its firstyear of operation,the company postedimpressive gains.During the 461days ending 31 December 2006 netprofit amounted to AED180 million(£24 million).The Indago portfolio included productionand associated cash flow from the WestBukha and Bukha fields in Oman. It also expandedRAK Petroleum’s pool of oil and gas industrytalent to manage the company’s expandingcollection of assets,including the transfer tothe company of Mr Sadler himself.Last year,RAK Petroleum took over anotherUK explorer,Anzon Energy,which expandsthe portfolio beyond the company’s core areainto more distant terrain, including Indonesiaand Australia,both well-known oil and gas producers.Althoughthe Anzon portfolio is outsideits core geography, the transaction gavethe company access to both talent and technology,boosting its credibility.Despite being on the acquisition trail, MrSadler talks of the firm’s commitment to stewardshipduring these early days.This will be testedin the coming year as the group gets to gripswith its new asset portfolio.The challenge is toaccelerate the development of its upstream assetsand turn this into positive cash flow as quicklyas possible. “The evolution is from what isessentially a cash management company to ahydrocarbon producing company,” he says.This means getting cash from the sale of oiland gas rather than depending on the returnsfrom other financial investments, a sign of maturityfor any ambitious, young oil company. Ifthis can be done by 2008 it will be an impressiveachievement. “People will say: ‘This is acompany that knows what it is doing – it hasgot a focused strategy,is dynamic,moves quicklyand does not spend a lot on overheads.’People will want to invest in this company.”Assuming all goes well, the intention is towork towards an initial public offering sometimethereafter.London is a natural choice formany global oil and gas juniors, but there arealso hopes of getting a listing in the Middle EastDrilling at a site in Oman acquired byRAK Petroleum from Indagoin recognition of the company’s roots.“The earliest we can have a compelling storyto take to investors is early 2009,” says MrSadler. Going forward, the aim is to positionRAK Petroleum as a showcase for Ras Al-Khaimah in the global oil and gas industry.“RAK Petroleum can put that sort of footprintdown, not as a state oil company, but as an internationaloil company,” he says. ●

UMM AL-QAIWAIN & SHARJAH / 12UAE 3rd NOVEMBER 2007SHARJAHDEVELOPMENTAT A MORERELAXED PACEInvestment has soared in Sharjah which hassuccessfully been developing non-oil activitiesSharjah is already a well-known destinationfor many tourists and businesses.Geographically contiguous with Dubai,the thirdlargest emirate has an international airport,which includes the biggest air cargo hub in thewhole of the Middle East and Africa region.This has helped facilitate not just trade, butalso an influx of people keen to learn moreabout local culture and to experience some ofSharjah’s own delights.A centre of regional culture– it was once crowned UNESCO’s Arabworld cultural capital – the emirate also boastsbeaches aplenty, luxury resorts and a varietyof shopping malls.The Blue Souq,for example,is a sprawling market with around 600 outletsselling everything from gold and expensivePersian rugs to local souvenirs.While tourism remains a high priority forthe local authorities,trade and investment hassoared, with Sharjah offering its own uniqueClose to Dubai, Sharjah has its own appeal to visitors – at more moderate pricesincentives,as well as enjoying any overspill fromDubai.Sitting on about 5 per cent of the UAE’sgross oil and gas reserves, the emirate hastapped these resources to take a lead in otherareas. Indeed, Sharjah accounts for approximately40 per cent of the UAE’s industrialGDP,reflecting both the strength and depth ofits economy. Last year, gross domestic productgrew by 19 per cent to £5.6 billion, comparedwith £5.01 billion in 2005.Proximity to Dubai means that many peoplecommute,taking advantage of Sharjah’s typicallylower cost of living. Real estate development,likeelsewhere in the UAE,is also a boomingmarket.The Sharjah International Airport is one ofthe emirate’s key selling points,just 10 minutesaway from Sharjah city centre.The airport datesback to 1932 when Imperial Airways, a forerunnerto British Airways, constructed an airfieldas a stopover en route to India and Australia.At that time, Sharjah ranked as one of the airline’smore remote outposts as well as beingthe first airport in the country.Today, it has the capacity to handle around8 million passengers every year and still continuesto grow.It is also a hugely successful transshipmenthub, especially for inter-modal cargo.Theairport offers some of the fastest transittimes for cargo being shipped in by sea andflown out by air:approximately six hours.Thisis partly because the seaports are located onboth sides of the Sharjah coast,two in the Gulfon the UAE’s western coast, and one in theGulf of Oman, on the UAE’s eastern coast.The two principal ports are Mina (port)Khalid in Sharjah City and Khor Fakkan on theeast coast. Located at these strategic air andmaritime hubs are some of the UAE’s most successfulfree zones, notably the SharjahInternational Airport Free Zone and theHamriyah Free Zone, with its deep sea portconnections,which handle some of the world’sbiggest ocean-going vessels.Sharjah was the first place in the Middle Eastto install fully equipped container facilities andhas enjoyed the massive growth in the globalcontainer market of recent years.A further reflection of Sharjah’s internationalcredentials is its Expo Centre, a state-of-theartmeeting point for business conventions andtrade fairs which draws people from across theMiddle East and the wider world.The city of Sharjah also holds great appealfor visitors, full of beautiful waterfront hotels,mosques, parks and gardens.Within touchingdistance of Dubai,it offers visitors more of theluxury and splendour familiar throughout theUAE, but at a more relaxed pace, and withmore moderate pricing. ●UMM AL-QAIWAINREALISING UN-TAPPED POTENTIALDevelopers are realising that the emirate ofUmm Al-Qaiwain has its own unique attractionsLocated in the northern part of the country,not far from Sharjah and Dubai, UmmAl-Qaiwain is another of the lesser known emirates.Yet with some of the country’s mostbeautiful natural landscapes, it should not beoverlooked. Positioned between Sharjah tothe south-west and Ras Al-Khaimah to thenorth-east, it offers something very differentto some of the frenetic developments takingplace elsewhere in the UAE.That said,Umm Al-Qaiwain itself is now beginningto take its first real steps towards development.Traditional occupations such asfishing and date cultivation remain important,but now there is an industry free zone to stimulatemore diversified business interests.Important local industries include cement productionand a plastics factory.Umm Al-Qaiwain’s lengthy coastline hassome of the finest beaches in the whole of theUAE, and the emirate offers some of the bestsailing and bird watching. Sinaiyah Island, forinstance,close to the town of Umm Al-Qaiwain,the emirate’s capital, is home to one of thelargest colonies of Socotra cormorants in theworld.The untapped potential has certainly beennoticed.Leading property group Emaar has registeredwhat this destination has to offer andis engaged in real estate work,in close accordwith the government of the emirate.Some impressivearchitectural ideas and constructionmore akin to Dubai are now taking shapethere.Emaar’s flagship Umm Al-Qaiwain marinaproject offers waterfront living along the emirate’sspectacular shoreline.The development,which surrounds a purpose-built marina, willbe a vast master-planned waterfront communityon the shore of Khor al-Beidah, offeringresidential villas and apartments to locals andoutsiders. Some of the villas with waterfrontviews will be built on a large island with gatedaccess, while a series of smaller private islandswill offer luxury waterfront villas for theUAE’s more discerning residents. In addition,resort and hotel rooms, as well as parks andrecreational areas, retail facilities, schools andThe capital of the emirate boasts no fewer than seven forts, some recently renovatedcommunity centres are planned or under way.Although this is not new for the UAE it isthe first of its kind for Umm Al-Qaiwain,whichEmaar describes as a “picture perfect location”with over 14 miles of waterfront.The town of Umm Al-Qaiwain itself,the emirate’scapital,sits just 30 miles north-east of hightempo Dubai, but offers its own unique attractions– a world away from one of the MiddleEast’s most dynamic tourist and business centres,yet close enough to feel the effects.The town’s historical roots are to be seenall over,but there is a clear attempt to embracemodernity with a multi-million dollar aqua park,Dreamland, raising the emirate’s profile withinthe UAE and the wider regional market.This is not the only investment in Umm Al-Qaiwain’s tourist potential.Another local playgroundis the Flamingo Beach Resort, a majorwater sports destination offering activitiesfrom crab hunting and glass bottom boat rides,to snorkelling, diving and fishing.These leisure ventures are complementedby other development projects as the governmentmaps out a more modern future.TheUmm Al-Qaiwain Free Zone,formed in 1998,sits very close to Dubai and the UAE’s othermajor trading hubs. Known as the AhmedBin Rashid Free Zone, it was set up withinthe confines of the Ahmed Bin Rashid Port.It consists of over 2700 feet of quay wall,1300of which can handle ocean-going vessels, and387,000 square feet of land reserved for lightindustrial development. Manufacturing, tradingand consultancy activities are all permittedwithin the zone. ●

UAE 3rd NOVEMBER 2007 AJMAN / 13AJMANHotels and resorts are developing along Ajman emirate’s beautiful stretch of beachTHE SMALLEMIRATE THATTHINKS BIGIt may be the smallest of the seven emirates, butAjman is ready to compete with its neighbourswhen it comes to ambitious real estate projectsComprising an area of only 161 squaremiles, the emirate of Ajman accountsfor less than 0.5 per cent of the country’slandmass. Located on the UAE’s westerncoast overlooking the Arabian Gulf, it hasa fast modernising capital, well providedwith shopping malls,an increasingly busy portencompassing a free zone, an eighteenthcenturyfort with a fascinating museum,anda long corniche road running betweenbeaches of fine, golden sand and a growingnumber of hotels and resorts.‘The lion’sshare ofinvestmentthis year willgo to realestate’Ajman lacks oil, but thanks to its strategiclocation and proximity to the commercialcentres of Dubai and Sharjah it hasa high percentage of the country’s industrialplants. The emirate has long beenknown for fishing and shipbuilding, andAjman Port is one of the fastest-developingports in the Northern Emirates.Agriculture and tourism are also seen assectors with great potential.Under the leadership of Sheikh HumaidBin Rashid Al-Nuaimi,and with financial assistancefrom wealthier neighbouring emirateslike Dubai and Abu Dhabi,Ajman hasopened up to investment and embarked ona process of development designed to boostits economy. Over the next five years thegovernment plans to spend between £6.67and £13.2 billion on infrastructure, includingdevelopment of the free zone and theseaport, new roads, a metropolitan rail linkto Dubai, and a new sewage system.A real estate boom is under way.Ajman wasthe second emirate after Ras Al-Khaimah toopen up its property market to foreigners andover the last three years some £3.4 billionworth of real estate development projects havebeen launched.Abdel Farah, head of researchand statistics at the Ajman Chamber ofCommerce, has been quoted as saying thatgrowth in investment this year will be closeto 20 per cent,“and the lion’s share will go tothe real estate sector.”A series of mega projects will transformthe local landscape. For the largest, the AlZorah project, the emirate has formed apartnership with Solidere ManagementServices of Lebanon. Described as “a citywithin a city”, and costed at around £6.8billion,Al Zorah will spread over 107 millionsquare feet. It will include a commercialoffice district, residential buildings andvillas, hotels, hospitals and schools, a marinaand a golf course, and will be connecteddirectly to the Emirates Road via a newhighway.Last year saw the launch of another townsizeddevelopment,the £1.96 billion EmiratesCity, being developed by R Holdings, featuring72 residential and commercial towers.Other major projects include Ajman I,a mixed-use residential, commercial andhospitality complex with 12 freehold residentialtowers, Ajman Marina, a tourism,residential and commercial project,and theAl Ameera Village project.“It was clear that when the concept of100 per cent freehold was introduced in late2002 there would be big potential,” saysFahad Dero, Chief Executive Officer of realestate company Sweet Homes. “It hasadded a new dimension to the UAE’s propertymarket. It has also meant that foreignersreinvest their money within thecountry rather than taking it abroad.Thereis no doubt that the freehold concept hasincreased the number of new buyers comingto the UAE.”Falcon Towers, Ajman’s next luxury towers, will offer exclusivity and unparalelled viewsSweet Homes, which has an extensivenetwork of offices, as well as outposts inthe UK, Oman and Qatar, is currently focusingits real estate development effortson Ajman.The company successfully marketedits first project in the emirate, AlNaemiyah Tower in 2004.Notableamong its other projects in theemirate since then is the 52-storey Corniche Tower,located bythe beach. However, its largestand most impressive project inAjman is the Paradise Lakes groupof eight 31-storey towers in theEmirates City development,whichare scheduled for completion inDecember 2008.The company promises firstclass facilities, comparable toDubai,with competitive prices.“Ifyou arrive at Dubai InternationalAirport, you can be in Ajman within half anhour,” says Mr Dero.“The Emirate City projectis about twenty minutes away and to getto the downtown area it takes about fiveminutes.The freehold and visa facilities areFAHED DEROSweet HomesReal Estatethe same as in Dubai,but the prices are verycompetitive compared to Dubai.”Sweet Homes offers its clients a widevariety of buyer and seller services includingproperty management,consultancy andfeasibility studies.“We provide a combinationof services related to marketsurveys,statistics,feedbackand customer requirements inorder to safeguard their investmentsand achieve betterreturns,” explains Mr Dero.“We have a very good databaseand over 5,000 satisfied customers.He adds:“Basically, the buyingand selling of real estate isa customer-oriented business.If you give wrong advice it willbe only once, because yourcustomers will never comeback, and they will tell their friends not touse your services.On the other hand,if yourcustomers are satisfied, they will give you agood name and you will expand your businesscontinuously.” ●

FUJAIRAH/ 14UAE 3rd NOVEMBER 2007FUJAIRAHANCIENT ANDMODERNWell-connected Fujairah has become a centrefor international and regional business activityThe only one of the emirates to be locatedentirely alongside the Gulf of Oman,the small but beautiful emirate of Fujairah isanother attractive destination for businessesand tourists alike. Despite a strong historicallegacy, it has embraced modernity and managesto draw large numbers of tourists –around 250,000 every year.Fujairah has spectacular backdrops, fromlofty mountains to sun-kissed golden beaches.It offers a paradise for water sports enthusiastsand adventure seekers, many culturaland historic sites, and all the luxury offive-star accommodation.Around Dh3 billion (£400 million) is beingspent on the tourism industry in a bid to attractmore visitors. With its new passengerterminal, Fujairah International Airport aimsto boost throughput to one million passengersa year by 2011.According to Fujairah Tourism Bureau, theemirate receives 60 per cent of its touristsfrom Europe and 40 per cent from within theUAE. Flagship holiday resorts such as theHilton Fujairah Resort and the Fujairah RotanaResort and Spa aim to appeal to both markets.The newest arrival on the scene, theMiramar Al Aqah Beach Resort, just 90 minutesdrive from Dubai, is the first resort tobe opened in the UAE by the Iberotel hoteland leisure group.Real estate developments are primarily concentratedalong the Gulf of Oman coastline.Major new billion dollar development projectsare under way,such as the Fujairah Paradiseproject, a concentration of villas, luxury hotelsand retail outlets, and the Fujairah Dana(pearl) development,comprising hotels and villason reclaimed land off the coast near Al Aqah.Further projects are planned as demand forluxury accommodation in the region growsand the leisure industry expands.The Fujairah Exhibition Centre has also becomea magnet for trade shows and conventions,whichbring in visitors from all over theGulf and the Middle East.The capital city offers a taste of local history,with a castle and a museum to keep visitorsbusy, as well as plush offices and residencies.Thesetwo contrasting faces are whatappeals to many: the modern new town andRaw materials for the regionEmirate producesrock and aggregatesfor the boomingconstruction industryThe boom in construction activity throughoutthe region,and particularly in Dubai,hasgiven a big boost to Fujairah’s cement, stonecrushing and mining industries.Established onlylast year as a joint venture between theFujairah government and the Pacific BasinShipping company, Fujairah Bulk Shipping hasboosted local export capacity to move the rockand aggregates to regional markets.Fujairah Fort, a 300-year-old mud brick structure, is an impressive local landmark“Fujairah and Ras Al-Khaimah produce thehighest quality rock and aggregate for marketswithin the Gulf,” says Edward Marc O’Grady,the company’s Chief Executive. “They providethe regional multi-billion pound constructionindustry with the raw material necessary tobuild the significant commercial,industrial andtourist infrastructure currently under way.”Using ships or barges, FBS provides comprehensiveshipping, stevedoring and logisticservices for the transport of all rock materialsin and around the Gulf.It ownsa concession to build a rock handlingterminal, with jetties, loadingramps and storage facilities.With the reach of Pacific BasinShipping – one of the world’s topbulk shippers – behind it,the companybrings an international dimensionto an already thrivingmaritime sector.Moving heavy, awkward loadssuch as rock and aggregates presentsa big problem to shipping andlogistics operators.Part of the rationaleto create the FBS jointventure was to build a companywith integrated expertise, making the deliveryof such products more efficient and costeffective.“It was our opinion that for the business towork and reliably serve the needs of the constructionindustry within our region the supplyEDWARD MARCO’GRADYCEO of FujairahBulk Shippingthe winding lanes of the old town, which areoverlooked by a centuries-old fort.Underpinned by first class infrastructure,with state-of-the-art air and sea links,Fujairahhas made good headway in expanding its industrialand commercial base too. The FujairahFree Zone has become a centre for internationaland regional business activity, attractinginvestment from overseas and locally.It issupported by the Fujairah InternationalAirport,now a major regional air hub,and thedeep sea Port of Fujairah, which togetherprovide strong links to the rest of the world.Work is also under way on a six-lane Dubai-Fujairah highway to cut travel time betweenthe two emirates. ●chain had to become fully integrated and managedaccordingly,” says Mr O’Grady.He believes that the ability to launch such anorganisation to spearhead the export and supplyof these essential construction materials illustratesthe commitment of the Fujairah authoritiesto progress and long-term development.“Fujairah has a focused and ambitiousgrowth strategy,” he says.In addition to being a market in its own right,the UAE is fast becoming a favoured turnarounddestination for ships of all shapesand sizes.Its location and state-ofthe-artlogistics facilities make it anideal base to serve global freightmovements heading east or west.Mr O’Grady says this modern infrastructureis further supported byan onshore business-friendly economyand host government.“FujairahPort is the largest multi-purposeport strategically located on the Gulfof Oman on the eastern seaboardof the UAE.Its strategic position hasproved attractive to a wide rangeof users specifically in dry bulk cargoand container handling.”Indeed,the port has become one of the world’sleading ship bunkering points and marine serviceproviders as a result of this location.Connectedby good road links to the rest of the UAE andadjoining countries,it is the perfect place for supplyingthe Gulf market. ●Fujairah Bulk Shipping transports heavy loads of materials in and around the Gulf

UAE 3rd NOVEMBER 2007 TELECOMMUNICATIONS / 15TELECOMMUNICATIONSALMOST 6 MILLIONMOBILE SUBSCRIBERSThe UAE has the highest mobile phone rate ofpenetration both regionally and internationallyWith just under 6 million subscribers,themobile phone services penetration ratein the UAE exceeds 140 per cent of the population.UAE residents spend more per headon telecommunications than anywhere elsein the region. Many have adopted the trendof subscribing to multiple mobile lines,and inaddition many foreign visitors subscribe to prepaidservices,holding on to the SIM cards forfuture visits.The saturation of the market has driven thedominant provider, state majority-ownedEtisalat, to extend its search for business toother countries like Saudi Arabia, Pakistan,Egypt and Afghanistan. However, with the recentarrival of a second operator on the scene,Etisalat will be faced with competition.Until last year, Etisalat was the UAE’s soletelecommunications service provider. Thatchanged when the government began to openup the sector in line with the UAE’s commitmentsto the World Trade Organisation,which requires full liberalisation by 2015.A second national provider, the EmiratesIntegrated Telecommunications Company,trading under the name “du”,was licensed bythe recently established TelecommunicationsRegulatory Authority and started operatingin February this year.The government recently announced thatit would not be opening up the sector to foreignplayers in the near future, saying it expectedtariffs to become competitive nowthat Etisalat’s monopoly had ended.“We feelthe existing number of telecom companies isenough at present,” Sultan Bin Saeed AlMansoori, Minister of Government SectorDevelopment, told Gulf News.Etisalat rang up net profits of Dh3.7 billion(£496 million) in the first half of this year, a33 per cent increase compared to first halfof 2006.Mohammad Hassan Omran,the company’sChairman,says the results demonstratethe company's diverse capabilities and competitivestrengths.“We achieved financial resultsexceeding expectations and continue toachieve strong results supporting our continuedleadership in the region’s telecommunicationsindustry.”Etisalat’s rival du,which like Etisalat is partlygovernment owned,is expected to spendDh4.7 billion (£631 million) over threeyears on its mobile and fixed line servicesto secure 30 per cent of the UAE market.A report by investment bank EFG-HermesEtisalat saw a 33 per cent increase innet profits in the first half of the yearsays du can build a significant market share,taking advantage of the UAE’s fast growingpopulation and the high level of per capitaspending on telecommunications. It predictsthat du will sign up 569,000 active subscribersthis year, taking 57 per cent fromEtisalat. ●Bringing the worldwithin its orbitWith the launch of its third satellite, ThurayaSatellite Telecommunications Company isextending its coverage to the Asia-Pacific regionhe UAE lives on telecom-and likes to“Tmunicationsdo so using wireless technology,”observes Yousuf Al Sayed, CEOof Thuraya SatelliteTelecommunications Company.And not just the UAE, as Mr AlSayed is in a better position thanmost to appreciate. For the AbuDhabi-based firm boasts theworld’s largest subscriber basefor satellite mobile phones,comprisingmore than a quarter of amillion people across the globe.Thuraya's satellite network extendsto more than 110 countriesin Europe, Africa,the Middle East,and Centraland Southern Asia,and by the end of the yearwill have been extended to the 21-countryAsia-Pacific region, following the launch thismonth of the company’s third satellite.Circling 22,236 miles above the earth, at 44degrees east longitude, five metric tons oftechnology will provide coverage to an areaextending from the East of India all the wayto Japan.“With that development, our coveragewill encapsulate about two thirds ofthe world’s population,” says Mr Sayed.Thuraya was founded by an investor consortiummade up of prominent nationaltelecommunications organisations, financialYOUSUF AL SAYEDCEO of ThurayaSatelliteTelecommunicationsCompanyhouses and investment companies,including Etisalat and AbuDhabi Investment Company. Itlaunched its mobile satellitetelecommunication system inOctober 2000, thus providingblanket-to-blanket coverage tomore than 110 countries inEurope,North and Central Africaand large parts of SouthernAfrica, the Middle East, Centraland South Asia.A second mobilesatellite was launched in 2003.The launch of the third satelliteis part of Thuraya’s push todouble its market size withinthree years by bringing countries such asChina, Japan, Korea, Malaysia, Vietnam,Indonesia, the Philippines and Australia intoits orbit. The company last year opened apermanent office in Singapore as part of theextension of its services into the region.“Thuraya is not really aimed at the UAE,which is geographically well covered by GSM,”says Mr Al Sayed. “Our market is in countriesthat do not have a developed telecommunicationsinfrastructure, or that are solarge that it is not cost effective to providetelecom infrastructure or GSM to cover thewhole territory, and where satellite coverageis the solution.”Subscribers access Thuraya’s mobile satellitesystem through service providers whoare either national GSM network companiesor local telecom operators. Thuraya’s specialdual-mode satellite/SGSM handsets en-able users to switch to satellite transmissionwhenever they are out of range of terrestrialGSM networks.“Thuraya is unique and differentiated fromother satellite service providers because weare closer to GSM than satellite.The differenceis that we use satellite infrastructure,”says Mr Al Sayed.In connection with the latest satellite,serviceprovider agreements have already beensigned in Australia and South Korea,and withBeijing-based China Satellite CommunicationsGlobal – a deal that Mr Al Sayed describesas “a big breakthrough for us.“ Agreementswith companies in other targeted countrieswill be signed by the end of the year.Meanwhile, negotiations for a fourth satelliteare under way with Boeing SatelliteSystems, which has built the other threesatellites.Earlier this year,Thuraya launched ThurayaSG-2520, the smallest and lightest satellitephone, which it is calling the world’s firstsatellite smartphone.The SG-2520 offers advancedvoice, data, fax and SMS. Users areable to download and upload informationfrom the internet in either the satellite orthe GSM mode. Thuraya handsets also havea built-in GPS worldwide radio-navigationsystem, which can prove a lifesaver in remoteareas.Under an agreement signed with Al JazeeraChannel, Thuraya subscribers are providedwith the latest breaking, political, business,and sports news through Short MessagingService (SMS).“We are focusing on our core business,which is voice and data,” Mr Al Sayed says.“We want to bring in new services, to innovate,especially in terms of tracking systemsfor fleet management, and to enter into themaritime business in a strong way along thecommercial routes from Japan, Singapore,Dubai, and Jeddah all the way to the UK andAmsterdam.Those are important routes forus,and for which we are developing the necessaryhardware and services.” ●