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for Home Builders, Developers and Construction Companies February 20 - March 2, 2009
Dubai: The Fastest Growing City in the World Join us and other industry leaders as we visit the fastest growing city in the world - Dubai. As anyone who has visited Dubai will tell you "it has to be seen to be believed". The sheer volume and scale of construction cannot be envisioned without seeing it with your own two eyes. Dubai is being transformed from an oil-dependent desert town of 170,000 people (1975) to a super-wealthy city of 1.7 million today, set to increase to 3.5 million over the next decade. About 80% of Dubai residents are foreign nationals living and working in the city.  While foreign nationals (expatriates) will never be granted citizenship, they are allowed to own property, which is one of the main reasons why there is a boom in residential construction. High wages, no personal income tax, year-round warm weather, and a chance to live in a dynamic city seem to be the reasons why so many people have moved to Dubai. Dubai - An Arabian Pearl A great deal of Arab money, invested in the US, came back after 9/11 and needed an outlet. The fact that world oil prices have been through the roof during the last year, upwards of US$ 140 a barrel, has meant the Gulf was and is awash with liquidity. There is a clear need for a strategic financial centre in the Middle East: Beirut played this role once, Dubai is doing so now. Money has been draining out of Iran for years and Dubai, just across the Gulf, has always been a traditional place for Iranians to put their money to work. What Dubai is trying to do is set an example of how Arabs should be represented. After 9/11, Arabs suffered from a lot of bad publicity. Dubai is trying to come back with the right kind of publicity. It will be a fully modern state. It will be setting the standards. It will be a place that people look up to. Build It and They Will Come Dubai will soon boast the world's tallest building (Burj Dubai) estimated to be 818m (2,684 feet) tall when completed at a projected cost of US$ 800 million. Its precise height is being kept secret in case New York's new Freedom Tower tries to top it. The building is part of the 2km2 development called "Downtown Dubai". The total budget for the Burj Dubai project (including housing), is about US$ 4.1 billion, and for the entire new 'Downtown Dubai' - US$ 20 billion. Dubai Mall opened with the most retail stores (1200) in the world in early November. Dubai already boasts the world's biggest waterfront development and the largest reclaimed land project. The Burj Al Arab (7-star, sail shaped hotel) is the tallest hotel in the world and one of the most recognized buildings and images in the world. Soon to be constructed Dubailand is going to be the largest amusement park collection in the world - twice the size of Disney World. Dubai really is 'it' in the proverbial "build it and they will come". The World Visits Dubai Dubai International Airport handled a record 34 million passengers in 2007, an 18.3% increase over 2006. This makes Dubai the 8th busiest airport in the world for international passenger traffic, and one of the busiest cargo airports in the world, handling 1.668 million tonnes of cargo. The new US$ 4.5 billion Terminal 3 will increase airport capacity to 60 million passengers annually, a target which the airport expects to reach within three years. Meanwhile, another entirely new airport is being planned just along the coast towards Abu Dhabi. While no cost figures are available, six runways are planned for the new airport, with an annual capacity of 120 million passengers and 12 million tonnes of cargo. Dubai owns Emirates Airline, while bordering Abu Dhabi has Etihad Airways.  Dubai World DP Ports
Dubai has the largest man-made harbour in the world, serving a market of 2 billion people. More than 7 million containers are moved here in the course of the year, a figure that grew 23% last year, and is set to triple within the next six years. Almost everything of any significance in Dubai belongs to the state or to the ruling Maktoum family, and the port system is no exception. The Maktoums have been shaping Dubai as the trading and financial motor of the Emirates, and the Dubai ports system is central to their vision. Dubai sits on the all-important strategic routeway of the modern trading world of China, India, the Middle East, Europe and the US. Gold City Dubai is the nerve centre of gold trade in the world. On average, shoppers in UAE spend 30 times more on gold than shoppers in the rest of world. Gold consumption in UAE has risen by $110 million, or 18%, to touch $650 million in the second quarter of 2006. They claim that at any given time, over 25 tonnes of gold is on display in Dubai's jewelry shop windows.  One in every eight tons of mined gold finds its way into the gold souks (market) of Dubai. While there are a number of gold souks in Dubai, the most interesting is the Deira Gold Souk with more than 300 jewelry outlets. The Deira Gold Souk is on our list of places to visit in Dubai. Gold prices in Dubai are some of the lowest in the world. Gold is priced according to weight rather than design whether it's machine-made or made by a craftsman. The Gold rates are set daily by the UAE government, which is sometimes displayed in the main shops. Of course, you are expected to bargain. Construction in Dubai It is estimated that 24% (30,000) of all the world's construction cranes are operating in Dubai. Demand for cement in the UAE's seven sheikhdoms jumped from 2.6 million tonnes in 1992, to 17 million tonnes in 2007. Demand for steel is currently estimated at 2.5 million tonnes per year and is forecast to reach 5 million tonnes per year in the medium term. There are 250,000 construction workers in Dubai, mostly from India and Pakistan. A one-night stay in one of Dubai's exclusive hotels would cost these workers about six month wages. The World Bank has estimated the reconstruction of Iraq is going to cost US$ 53 billion. In Dubai, where the sand stretches 25 miles along the shores of the Persian Gulf, there are about US$ 100 billion worth of projects either underway or planned for the near future. That is a numbing figure - ungraspable. It is the equivalent of every single dollar invested in the United States from abroad in 2006.  Residential Construction in UAE & Dubai There are 5 million residential units under construction in Arab States in the Gulf, which comprises Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE). The UAE is a federation of seven sheikhdoms: Abu Dhabi, Ajman, Dubai, Fujairah, Ras al-Khaimah, Sharjah and Umm al-Qaiwain. According to a report by Colliers International (10/2007), the Dubai realty sector will see 150,000 new residential units in the next year. About 55% of residential construction in the UAE has been built in the form of apartments, with 11% villas and public housing. Landlords have been able to demand yearly rents in advance, but this appears to be changing. There are two key factors for the residential construction boom in the UAE. The first is the opening of the real estate market by allowing expatriates and foreigners to own residences in Dubai. David Beckham and Posh Spice, and Brad Pitt and Angelina Jolie own properties in Dubai. There is a strong British business influence in Dubai, and it has become a popular vacation destination for many rich Europeans. The second major factor is the government's introduction of programs for housing to UAE nationals, by offering land grants and financing facilities in the form of no-interest-bearing mortgage loans. About 35% of this residential boom in the UAE is in Abu Dhabi, while Dubai and Sharjah's shares stood at 29.1% and 18.8%, respectively. Other emirates sharing in the housing boom include Ras Al Khaimah (6.6%) and Ajman (5.6%). Competition for buyers can be stiff, with one-high end housing project offering a Jaguar with every deal.  Dubai and the UAE real estate market is slowing down as a result of recent global economic events. However, 'slowing down' has a different meaning in the UAE than it does in the rest of the world. The Palms The most famous residential development in Dubai is The Palms. They are the world's three largest man-made islands that will increase the coastline by 120 km (72 miles) and create a large number of residential, leisure, and entertainment areas. The two man-made freehold artificial palm tree-shaped resort islands are being built to maintain Dubai's position as a premium tourist destination. The Palm Islands have also been named 'The Eighth Wonder of the World'. Two Dubai islands, The Palm Jumeirah and The Palm Jebel Ali, will be built in the shape of date palm trees and consist of a trunk, a crown with 17 fronds, and a surrounding crescent island - the back of which forms the breakwater. Collectively, the islands will support more than 60 luxury hotels, 4,000 exclusive residential villas, 1,000 unique water homes, 5,000 shoreline apartments, marinas, water theme parks, restaurants, shopping malls, sports facilities, health spas, cinemas and various dive sites. There will be a Giorgio Armani Hotel and a Palazzo Versace.  The World The other major artificial island project is called The World, and is an archipelago of 300 islands located 4 km off the coast of Dubai and made in the shape of a world map and. It was developed by Nakheel Properties and was originally conceived by Sheikh Mohammed bin Rashid Al Maktoum, the ruler of Dubai. Each island in the archipelago ranges from about 14,000 m2 (150,000 sq. ft.) to 42,000 m2. The distance between each island will be an average of 100 meters. The entire development covers an area 9 km in length and 6 km in width, surrounded by an oval breakwater. The overall development cost of The World was estimated at US$ 14 billion. As for the individual islands, prices range between US$ 15 and 50 million. One island is still for sale at a price of US$ 250 million. On January 10, 2008, the final stone on the breakwater was laid, completing initial development. The next phase of the project is to hand over the individual islands to developers. Shopping Malls  Dubai has 35 shopping malls with about 3500 stores, covering an area of 14 million m2. This is supposed to double over the next several years. All of the world's leading brands and designer goods can be found in Dubai. Many Dubai residents have or make good money, are optimistic about their future and have the highest daily per capita spending in the world. Here are a few of the malls you will visit on our tour: Dubai Mall The Dubai Mall, one of the world's largest, with more than 1,200 stores and a host of world-class attractions, is revolutionizing the modern shopping experience. Complete with its own aquarium and ice hockey rink it is a must see mall even for non-shoppers. Sprawling over 12 million sq. ft. (equivalent in size to more than 50 soccer pitches), the Dubai Mall has a total internal floor area of 5.9 million sq. ft., and leasable space of 3.77 million sq. ft., about the same as West Edmonton Mall. The Dubai Mall has 10 to 15 distinct 'malls-within-a-mall', consisting of 9 million sq. ft. of shopping retail space. Featured attractions include a world class aquarium and hockey rink, and a Gold Souk with 220 retailers.  Mall of Emirates Prior to Dubai Mall this mall, was the largest mall in the Middle East. This mall is best known for its downhill ski slope - Ski Dubai. This wonder of engineering opened in 2005 and is covered with snow year-round. It features five slopes of varying difficulty plus a tow and chairlift. The longest run extends more than 1,300 feet, with a drop of nearly 200 feet. There are some 450 high-end retail shops in the Mall of Emirates including Gucci, Versace, Ralph Lauren, Yves Saint Laurent, Bvlgari, Bottega Veneta and yes, there's even a Starbucks. Commercial Office Development  Dubai has over 27 million sq. ft. of confirmed office space under construction. To put that in perspective, it's the same amount of office space available in Geneva, Rio de Janeiro, Beijing and Singapore. Dubai is ranked third in terms of global office real estate construction activity in the Real Estate Consultants' 2007 Global Office Real Estate Review (Moscow and Shanghai take the top two spots). Despite strong latent demand for office space, the sheer volume under construction, combined with the period of delivery will have a marked impact on the competition between landlords, with a concurrent softening of rental levels and a greater number of tenant incentives on offer, according to Colliers. Much of the supply will enter the market within a one to three-year window, inevitably leading to a landlord - as opposed to tenant - competitive market. Attractive rental price and payment terms, increased rent-free periods and equitable lease conditions, together with improved finishing levels, are expected. However, despite considerable rental increases, Dubai is still significantly less expensive than London, Hong Kong, Tokyo, Moscow, Paris, Dublin, New York and both Mumbai and Delhi, and ranks 13th in Colliers' Global Survey of the top 25 Office Occupancy Cost destinations. Abu Dhabi - Richest City in the World Abu Dhabi is the largest of the seven Emirates, the Federal capital of the UAE and the richest city in the world. It is about 90 miles from Dubai and we will be making a day trip to visit. Dubai is a story of survival - how one small city running out of oil saved itself with a mixture of tourism, commercialism, and pizzazz. Abu Dhabi doesn't need to do anything - it has the oil reserves and the financial cushion to sit back and watch the Dubai experiment. The Abu Dhabi Investment Authority, which Sheikh Zayed set up to manage the emirate's oil profits in 1976, now has an estimated $1 trillion invested in world markets.  The emirate's 420,000 citizens are worth about $17 million apiece. The one million foreign workers don't share in the wealth. The government-owned investment company Mubadala Development plans call for almost US$ 200 billion to be spent over the next ten years. Abu Dhabi and Dubai operate like family businesses. While the Maktoum family of Dubai and the Nahyan family of Abu Dhabi are cousins, they were born in very different neighborhoods. Not to be out-done by Dubai, Abu Dhabi built the US$ 3 billion 7-star Emirates Palace hotel with its $1,000-a-night rooms and $10,000-a-night suites. Saadiyat Island Abu Dhabi is trying to be different from Dubai by creating a cultural oasis in the desert. The US$ 30 billion Saadiyat Island will become the centre of culture and include 29 hotels, three marinas, two golf courses, and housing for 150,000 people. It is connected to Abu Dhabi via two ten-lane causeways. The result is a 670 acre cultural district designed by some of the world's best-known architects, including Frank Gehry. Many cultural projects have already been announced including the development of a Guggenheim Museum dedicated to modern and contemporary art. The Frank Gehry-designed building is due for completion in 2011 and will be the largest Guggenheim Museum at an estimated cost of US$ 400 million. Abu Dhabi paid US$ 1 billion to the Louvre museum in Paris for a satellite Louvre museum, to be completed in 2012. Carbon Neutral City Masdar City, the world's greenest city, is going to be built near Abu Dhabi and will be the world's first zero-carbon, zero-waste and car-free city. Electricity will be generated by photovoltaic panels, while cooling will be provided via concentrated solar power. Water will be provided through a solar-powered desalination plant. Vegetation will be irrigated with grey water (treated waste water). There will be no cars zooming around the city, with residents getting to and from via trains and automated transport pods. The 6 km2 city, growing eventually to 1,500 businesses and 50,000 residents, will be home to international business and top minds in the field of sustainable and alternative energy. Abu Dhabi is the first hydrocarbon-producing nation to have taken such a significant step towards sustainable living. Masdar City is being designed by world renowned UK architect Lord Norman Foster (Foster & Associates). Not to be outdone, Dubai will have its own carbon neutral community, called the Ziggurat's Project, but this project is only in the planning process.  Doha (Qatar)
We will spend the final two days visiting and touring Doha, Qatar. Doha is Qatar's largest city with over 80% of the nation's population (1 million) and is the economic center of the country. In 1973, oil production and revenues moved Qatar out of the rank of the world's poorest countries and the country's economic growth since has been stunning. Qatar's nominal GDP, currently $63.8 billion, had recently been growing at an average of 15%, and the 2007 growth rate was 12.5%. Qatar's per capita GDP is $67,000, (5th highest) and is projected to soon be the highest in the world. It is home to the Education City, an area devoted to research and education. The country was ahead of the curve in boosting its higher-education offerings, inviting Carnegie Mellon, Georgetown, Texas A&M, Virginia Commonwealth and Cornell Universities to launch satellite campuses in Doha. Qatar, the tiny desert nation has long been overshadowed by its showier neighbor Dubai. Qatar has begun a process of reinvention, determined to channel its significant oil reserves into a more sustainable legacy. Under the guidance of its emir, Sheik Hamad al-Thani, and his politically active wife, Sheika Mozah, it has charted a creative course with the intention of transforming itself into the region's cultural hub. Rather than trying to compete with Dubai for tourists seeking over-the-top excess, it has chosen to focus on a different demographic - those in search of sophistication. The center-piece project for Qatar has been the Museum of Islamic Art (MIA), which was designed by world-renowned architect I.M. Pei. The nation hasn't completely resisted the lure of conspicuous lavishness. Emboldened by 15 billion barrels of proven oil reserves, its civic planners have developed their own island- from-scratch project, the Pearl, built on land reclaimed from the sea. This massively ambitious undertaking, includes more than 16,000 luxury condos, townhouses and villas, 4 luxury hotels, 7 small private island "estates", night clubs, restaurants and the longest luxury retail promenade in the world - more than 2.5 km of luxury boutiques.  Executive Business Package
dennis @ theinnovators.net or telephone: 1-403-265-3441 |