Dubai property prices may drop as much as 30 percent more

original source Bloomberg

Nov. 18 (Bloomberg) -- Dubai home prices may take at least a decade to recover and increasing supply and a shrinking population will leave 25 percent of the sheikdom’s houses empty next year, according to UBS.

Prices may drop as much as 30 percent more, UBS analyst Saud Masud said in a note today. They have already fallen by more than 50 percent from the peak last year, making Dubai the worst-hit market in the global real estate slump.

Dubai’s construction boom petered out in the third quarter of last year after banks tightened lending and speculators left the market. UBS’s research contrasts with a Deutsche Bank report this month that said the market is “bottoming out” with slowing price declines and an increase in transactions. Masud said the market will probably reach its bottom in 2011.

Consolidation in the industry will result in asset writedowns, limiting the benefits of a possible merger of Emaar Properties LLC and three state-owned companies, UBS said. Emaar, the United Arab Emirates biggest real-estate developer, is in talks to join with state-controlled competitors Dubai Properties LLC, Sama Dubai LLC and Tatweer LLC.

Dubai’s population, which is 90 percent expatriate, may drop by 8 percent this year and another 2 percent in 2010, Masud said. Nearly half the workforce is employed in real estate or construction.

Banks in the United Arab Emirates have understated their non-performing loans and the total may grow to around five times the 27.8 billion dirhams ($7.57 billion) reported by the central bank in September, the Dubai-based analyst wrote.

Bank lending tied to real estate may be 35 to 40 percent of the total when including personal loans used for property investment. Central bank regulations cap real estate lending at 20 percent of a bank’s total. The loans could be 350 billion dirhams to 400 billion dirhams, almost double the stated 204 billion dirhams, UBS said.

Provisions for bad loans may grow to more than five times their current levels over the next 12 to 18 months, Masud wrote. Net provisions stood at 29 billion dirhams by the end of October, central bank data shows.

“We expect to see greater consolidation, higher provisions for non-performing loans, an increase in investor delinquencies and relatively lower end user demand for residential and commercial property,” Masud wrote.

Banks will face pressure to provide liquidity and late payments will probably present a continuing risk for contractors and subcontractors, he said.

To contact the reporter on this story: Zainab Fattah in Dubai on zfattah@bloomberg.net

Detained in Dubai - Support Group for Dubai Residents and Tourists who find themselves in Hot Water in Dubai

original source 7Days Dubai 18 Nov, 2009

With hundreds of Brits being arrested each year and hundreds more other expats ending up on the wrong side of the law, a support group has been set up to reach out to residents and tourists who find themselves in hot water in Dubai.

Detained in Dubai is a non-profit organisation set up by Radha Sterling after she fought for the freedom of close friend and TV executive Cat Le-Huy, who was arrested on arrival in the emirate for possession of a jetlag drug that turned out to be legal both in the UK and the United Arab Emirates.

She said: “I ran a campaign for the release of Cat after he was detained last year. He was picked up in the airport in Dubai and arrested for having melatonin - a jetlag pill which is not even illegal in the UAE. He was held in prison for more than a month and eventually released without charge.”

After Le-Huy’s ordeal hit the headlines, Sterling was contacted by other people whose friends and families were going through the Dubai judicial system.

She said: “I decided to set up something more formal as I was contacted by a lot of people after what happened to Cat. I have a legal background and worked closely with Cat’s lawyers during his experience so gained a detailed knowledge of the legal system and I wanted to share that with people who need help.”

Detained in Dubai is manned by a team of solicitors with experience in corporate, criminal and civil law as well a cross-section of researchers and interns. The drive behind the group is to raise awareness of the UAE’s laws to help foreigners avoid getting into trouble in the first place.

But when the worst does happen, Sterling, who works in the media and has a degree in law, is on hand to talk people through the legal process.

Detained in Dubai offers advice and support and recommends lawyers, but mostly, it helps people understand what to expect from an unfamiliar court system.

Sterling said: “A lot of the cases we come across are when a foreigner has got themselves in trouble because they aren’t familiar with the law.

That comes from ignorance really, but we would like to raise awareness of the expectations of Dubai and to make it clear to people that it is not another America or Britain - there are a lot of very serious rules.”

Many of the cases Detained in Dubai has come across in the last eight weeks since its online launch are relating to drugs.

The UAE’s banned and controlled substance list is 49 pages long. Dozens of substances from cough medicine to anti-schizophrenia drugs are included on the inventory.

Even tiny traces of an illegal substance can lead to years in prison.

But it is not only drugs offences.

Sterling says: “We are seeing a lot of financial and business related cases now which are very complex. It can be difficult for people to know where to start.”

Detained in Dubai offers daily support to people, whatever their nationality, and also helps those who come out of the other side adjust to freedom when they are released.

Sterling said: “That’s an important part of what we do as well because people can find it difficult when they do eventually get home so we offer after care support.

“We understand what they have been through.”

For more on Detained in Dubai, go to www.detainedindubai.org, call +447050 686 745 or email info@detainedindubai.org

Cases helped by Sterling's group

In trouble with the boss
Dive instructor Roxanne Hillier was jailed for three months in May this year after being convicted of having an affair with her Emirati boss.
The 22-year-old South African, who was working in Sharjah, was arrested when police broke into the dive centre where she had decided to stay overnight while maintenance work was being carried out on her apartment.
She claimed that she was upstairs, in a locked room, when police swooped. Her married boss was downstairs checking dive equipment. She says she was questioned in Arabic and could not understand.
Both Hillier and her boss were charged, although he was later acquitted. Hillier was released on appeal after nine weeks behind bars.

Drug problem
German TV producer Cat Le-Huy was stopped as he arrived at Dubai Airport last year and subjected to a full search.
He was found with melatonin - a supplement used for combating jetlag. He signed a confession in Arabic admitting to possessing illegal drugs, which led to him being locked up in the airport’s detention centre. The authorities also tested some dust and dirt inside his suitcase and found 0.03g of cannabis - smaller than a grain of sugar. Eventually, Le-Huy was released without charge after a meeting between his counsel and the prosecution.

Words of warning
In September 2009, Sun McKay was heading home to Sydney from Afghanistan where he was working for a security firm.
The 32-year-old Australian was queuing for his connecting flight in Dubai when he decided to go to the cash machine. As he stepped out of line, he claims he was grabbed by a man who shouted at him in Arabic. McKay swore in response and was arrested as the man was a police officer.
He has been charged with using insulting language to a police officer and could face three years behind bars. McKay is awaiting a court hearing on December 9.

Ps: Before travel to UAE Tourists should study the Guidelines for Import of Personal Medicines
and check this List of Restricted and Controlled Drugs
Technorati-Tags: Dubai Touirsts detained, Support Grouo Detained in Dubai

Dynasty Zarooni Dubai back in the Headlines - Another crimninal complaint ?

original source dailymail uk


For successful London jeweller Nadeem Osman, Dubai had all the bling in the world. Like thousands of others, he loved the city's fast life, with its sports cars, glitzy shopping malls and super-luxury hotels. And, of course, its sun and fabulous beaches.

The 37-year-old businessman from Balham, South London, holidayed there at least twice a year with his wife and even thought of moving there eventually, away from the rain and cold of England.

So 14 months ago, as an investment on the side, Mr Osman decided to buy four apartments in the city, which he planned to rent and also use as his holiday homes.

Losing its sparkle: Jeweller Nadeem Osman bought four flats in Dubai last year, just before the property market there crashed

He paid £580,000 for two off-plan apartments in Villa Caria, a residential block in Jumeirah South, and two more in a proposed hotel on the Dubai Waterfront, known as Hotel K. But his timing could not have been worse, with the Dubai property market then going into free fall: down 32 per cent in the first quarter of this year and 47 per cent in the second, according to Knight Frank.

Assetz, a property investment company, estimates that the fall may reach 70 per cent this year. Mr Osman bought the apartments through Dynasty Zarooni (DZ) - one of the city's biggest real estate companies, with a portfolio of properties worth £219million.

He paid the full sum upfront, assured that the money would be put into an escrow account which protects a buyer's money until the work is complete.

In January, one of the directors of DZ was arrested on a £60million fraud allegation - and since released without charge - but work on Hotel K has not even started. It is scheduled to finish by 2011. The company does not even own the land on which it was to be built.

Villa Caria was supposed to be completed by the end of this year, but DZ has told him it may take a further two years. Mr Osman has also been told that his money was not put into an escrow account, and he is unable to get any back.

'I don't know what to do,' he said. 'If it was in this country I could do something about it, but in Dubai it's so difficult as there is a huge backlog in the courts.'

Dynasty Zarooni has declined to comment after repeated attempts to contact it.

Mr Osman has now formed a group with ten other investors to decide whether to take legal action or file a criminal case.

Dubai's courts are struggling with a mountain of property cases totalling £3billion - as much as £500million may involve British investors.

Stuart Law, of Assetz, says Britons, who were the largest Western investors, were partly responsible for the crash as they inflated prices through their highly geared buy-to-let schemes.

'We've known of properties that were sold again and again about ten times one after another - it was good as each person made a profit, but the person who was left with the contract at the last was in trouble,' said Mr Law.

Read more: http://www.dailymail.co.uk/property/article-1228306/Why-Dubai-lost-sparkle-UK-jeweller.html#ixzz0X3PuoMQ0

Dubai developers Cirrus and Kaizen disappear - Investors worried

original source Construction Week Online Dubai, 14 November 2009

Confusion has broken out over the whereabouts of international real estate firms Cirrus Developments and Kaizen Developments.

Both developers are responsible for hundreds of millions of dollars worth of developments in Dubai and across the region, including Cirrus’ Aquarius Gate in the Waterfront area, and Kaizen’s Equinox Residences at Palm Jebel Ali.

Websites for the companies are no longer active, while phone numbers listed on their brochures have not connected.

Cirrus Developments had been developing Celestial Heights – a mixed-use project of three towers, in the Downtown Jebel Ali master development, but the project is now being looked after by a firm called Catalyst Project Consultants, Construction Week has learned.

“Cirrus was part of phase one of Celestial Heights, then the owners appointed Catalyst,” Catalyst Project Consultants’ director Israr Ahmed told CW.

“Cirrus have downsized and moved offices, but they handed over all work related to the project over a two month period.”

Ahmed also said that Catalyst was “not at all” related to Cirrus Developments but it did have links to Kaizen Developments whose logo featured on early Celestial Heights marketing materials.

The last number he had for Cirrus could not be connected.

Dubai’s Real Estate Regulatory Agency (Rera) confirmed to CW that a developer by the name of Kaizen One Investment Limited was an approved developer, but the phone number it had registered for Kaizen now belongs to a general trading company.

Significantly, the registered website that Rera had for Kaizen One Investment Limited was www.cirrusdevelopments.com, which is now defunct.

Construction Week eventually managed to reach Cirrus Developments’ brokerage number where a receptionist said: “Due to the [financial] crisis, we have suspended the brokerage”, but insisted that despite not appearing on Rera’s list of approved developers, the development side of the company was still in operation.

Both public relations firms which represented Kaizen and Cirrus in the past confirmed that they were no longer their clients.

Kaizen Developments is unreachable.

Do you work for Kaizen or Cirrus? Have you invested in their projects or have you worked on their projects? Please contact constructionweek online

Jumeirah Lake Towers - One more Dubai Property Disaster - Homes promised in 2007 won`t be ready before 2011

original source Zawya
Dubai: Investors who paid as much as Dh1.7 million for apartments in a residential tower said they are no closer to moving in though the project should have been completed two years back.

Three 40-storey buildings at Jumeirah Lake Towers two residential towers and a business tower -- were due to be completed in 2007, but buyers have now been told that the buildings won't be ready before 2011.

They claimed that the developer Al Attar Properties altered the original plans from two-bedroom apartments to one-bedroom plus a study and changed the views they wanted. An official from Al Attar Propertiessaid the delays have been due to problems with regulations and reassured investors that construction work would begin "in four weeks' time".

Mohammad Makram, an Egyptian national, said he is one of 60 investors affected and is currently forced to rent as well as pay off a bank loan that he took for the apartment.

He bought a Dh1 million freehold two-bedroom apartment in 2007 and was originally told it would be completed at the end of that year.

Sherif Atef, an Egyptian expat, who spent Dh1.7 million on a two-bedroom apartment in the Vista Del Lago tower, said: "It's been so frustrating since I bought the apartment in August 2008. I don't think we'll see the money again."

"We have taken independent experts to the area and they said that there is no way a 40-storey building will be ready by 2011 and that's even if they start work right away," Makram said.

He added that the group decided to wait for a change in the law in the new year before moving court. "My life has been on hold for two years. I had been planning to get married but that'll be delayed as I don't know where we may be living," he said.

Many investors have been de-manding their money back but Al Attar Properties has been refusing, Makram added.

Absoulte unhappy Nakheel Propery Buyers - Dubai Jebel Ali Palm complaints investigated

original source The National


The Dubai Land Department (DLD) will investigate complaints over the stalled Nakheel Palm Jebel Ali project after about 125 disgruntled property buyers petitioned the authority.

Nakheel has offered investors alternative homes in other projects that are either completed or already under construction, including at International City, Jumeirah Heights and Al Furjan.

“After patiently waiting for seven years and putting all of our hard-earned money into this project, we are being given the option to transfer to inferior properties which are not in the same league as those promised to us,” the investors said in a letter to the DLD. “This is not what was sold to us.” An official said the department would compile a report on the situation.

Palm Jebel Ali, the second part of the Palm island trilogy, was launched by Nakheel in 2003 and was designed to accommodate up to 250,000 people and add 70km of beachfront to Dubai. Work came to a standstill on the vast artificial island development after property prices started to tumble last year.
read the rest of the Report The National

Japanese construction companies are facing very serious debt problems as Dubai can’t pay

original source The National

Japanese builders are owed billions of dollars on projects that include the Dubai Metro and Palm Island, according to a top diplomat and leading contractors from the country,
Japanese builders have played a pivotal role in Dubai’s construction boom, spearheading work on the Dh28 billion (US$7.6bn) Metro and helping to build Nakheel’s palm-shaped islands off the emirate’s coast.






But as the global financial crisis brought many projects to a standstill, an increasing number of foreign companies, especially builders, have reported payment problems mainly linked to Dubai developers.

“Some Japanese construction companies are facing very serious debt problems as Dubai can’t pay,” said Seiichi Otsuka, the Japanese consul general in Dubai. “Some companies engaged with the construction of the Metro are facing some payment issues.” He said companies were also owed money by Nakheel.
read the rest of this article...The National

Sheikh Mohammed Ruler of Dubai has told the emirates`s critics to " Shut Up"

original source 7Days

Dubai Ruler tells critics to ‘do their homework’ as he stresses unity and confidence in the future

The Ruler of Dubai has told the emirate’s critics to ‘shut up’.

HH Sheikh Mohammed bin Rashid Al Maktoum yesterday broke away from a pre-prepared speech in Arabic on the Dubai economy to make his point in English.

His remark was directed at people who have tried to suggest there is a wedge between the emirates of Dubai and Abu Dhabi after Dubai drew a $10 billion emergency loan from the UAE central bank.

But Sheikh Mohammed said these people “should really do their homework” about his country.

“I just want to tell these people who nag about Dubai and Abu Dhabi to shut up,” he told the MENA and Frontiers Conference in Dubai, organised by Bank of America Merrill Lynch.

Sheikh Mohammed, who is also the prime minister and vice president of the UAE, stressed the close ties between Dubai and Abu Dhabi.

“Dubai and Abu Dhabi are one,” he said, adding: “I assure you that we’ll be there for each other when we need it.”

The comments were clearly aimed at dispelling perceptions of a rivalry between the two emirates.

There have been accusations around the globe that Abu Dhabi has become jealous of Dubai’s success in recent years as it tries to diversify its economy away from a dependence on oil.

But yesterday, in rare public comments on the subject, Sheikh Mohammed stressed the tribal bonds and blood relations between the emirates’ rulers.

“We, our fathers, grandfathers have fought for the Arabian Peninsula,” Sheikh Mohammed said. “We are very, very proud of our country, very proud of our people... And our people (are) very proud of us.”

The ruler also confronted critics who say Dubai was slow to react to the global financial crisis.

He said the government “preferred to wait rather than rushing” so it could restructure state-owned companies. And Sheikh Mohammed said he
was confident the worst of the crisis was over.

“As the global economy stabilises, Dubai today is well placed to exploit its inherent strength,” he said.

“The slowdown will never dampen the mettle of children of Dubai to steam forward in the drive toward development,’’ he added.

Dubai faces a debt of about $80 billion. As well as the $10 billion loan, it expects to raise an additional $10 billion in financing before the end of the year.

more Maktoob.com

Dubai - Sheikh Mohammed`s speech at Bank of America Merill Lynch investment conference

original source SheikhMohammed

Follow the link to read an edited translation of the speech of His Highness Sheikh Mohammed bin Rashid al Maktoum Ruler of Dubai at an investment conference organized by the Bank of America Merill Lynch in Dubai.
Link



Video of the speech

Apartment blocks in Dubai are suffering from a lack of confidence in the property market

source TheNational
Homeowners say its absence creates legal ambiguity and developers complain that without it they are essentially forced to provide extra services for householders.

Both, however, seem to agree that their dilemmas and Dubai’s lacklustre property market could be smoothed over by the emirate’s strata law.

Dubai Real Estate Regulatory Agency, or Rera, which took a lead role in shaping its regulations, has for the past several months been largely silent on the issue. Officials there did not respond to questions on the issue. And in the interim, developers, homeowners and property management firms warn, the result is wavering confidence and continued confusion in the market.

“Everyone’s frustrated,” said Adrian Quinn, chairman of Essential Community Management, a property management firm that has been waiting years and invested a total Dh8 million ($US2.2m) for the day when the law would allow it to bid for rights to manage freehold properties in Dubai.
read the full report The National

Dubai Nakheel Palm Jebel Ali Home Buyers stay united

People who bought waterfront villas on Palm Jebel Ali, where prices have tumbled by about 45 per cent from their peak in the third quarter of last year, are now being asked to transfer their investments to projects that include Al Furjan and Jumeirah Heights, which are both under construction.

But the move has been criticised by investors, who expected to move into their new homes last year.

“Nakheel has called investors and given them this option,” said Saqib Iqbal, who bought a villa in the development in 2006.

“But most investors would like them to complete Palm Jebel Ali. People have paid premiums on top of what they paid originally, it’s a disaster to be asked to move somewhere else.”

Palm Jebel Ali was the second artificial island project to be launched by Nakheel and was designed to accommodate up to 250,000 people and add 70km of beachfront to the emirate.
“Further work on Palm Jebel Ali has been delayed until market conditions allow recommencement of these phases of the development, and customers are being given a range of options within the wider Nakheel portfolio to transfer their investment,” said Nakheel.

In an letter sent to Marwan bin Ghalita, the chief executive of the Dubai Real Estate Regulatory Authority (RERA), investors said: “This is not what was sold to us. The apartments being offered are much smaller, with no beachfront or private pool, and are at a much higher price.”

The investors, most of whom have paid 30 per cent towards their purchase, have called on Nakheel to instead resume construction of Palm Jebel Ali, register their plots with the Dubai Land Department and officially agree to link further payments with construction milestones.

original source The National read the full article.......

Dubai residents say their water and electricity bills as much as doubled in September

A group has even formed on the social networking site Facebook called “My Dewa bill increased in September 09 by a crazy amount for no reason!”

One member claimed the bill for his three-bedroom flat in Al Barsha was Dh8,000. As of yesterday, the group had 144 members. Other Dubai-based websites have jumped on the bandwagon and are running similar discussions about what is causing the bills to shoot up.

read the full report original source The National

Mr. FIX IT in Dubai

It`s said... this is a true story .....about a so called "Mr. Fix It" brought to you over a search...
original published by Prakash Subbanao.
Click on the Link and enjoy reading !

Dubai - More than a half million bounced cheques between January and May 2009

Bounced cheques are regarded legally as fraud, a criminal offence punishable by jail in Dubai and the UAE.

With more than a half-million cheques bounced between January and May of this year alone, the cases have been putting an increasing strain on the legal system.



But now the hard walls of debtors’ prison are beginning to crack.

No longer will home buyers in Dubai who cancel postdated cheques because of a developer’s missed deadlines or broken promises automatically face jail.

Instead of being investigated by police or prosecuted, delinquent tenants and homeowners will be referred to a new judicial committee that will make a binding judgment on whether they should be held to payment. It will also deal with developers who run into financial difficulties and cannot pay their investors.
read the full aricle in The National original source

Dubai Prosecutors will hunt former senior executive of Istithmar World

Dubai, 05 November 2009
An Interpol Red Notice could be issued for the arrest and possible extradition of Chris Turner, who was sentenced in absentia to five years in jail for embezzling AED4.9 million ($1.3m), UAE daily The National reported on Thursday.

The former risk assessment manager for the investment arm of Dubai World was also ordered by Dubai Criminal Court to pay $2.7m in fines and restitution.

Turner, speaking to newswire Zawya Dow Jones from a location outside the UAE, said: "I'm innocent of the charges and I'm not in the country. I'm reviewing my legal options."

"This is a matter for the appropriate authorities," said a spokesman at Istithmar World in an emailed statement to the newswire.

But prosecutors in the UAE said they would hunt for him.

source Arabian Business here read the full article

Fraud in Dubai and the Gulf Region - Just the tip of the iceberg

source The National

It is more than a year since Dubai launched a highly publicised clampdown on corruption, which led to the arrest of several executives from some of the emirate’s top property developers and financial institutions.

But while Dubai grabbed the international headlines, it represented just the tip of the iceberg in a region that has been identified as a hot spot of corruption.

Kroll, an international risk consultancy, said last week the Middle East was the world’s only region to see a rise in fraud in the past year. It singled out corruption and bribery as the single largest threats.
“For seven out of 10 cases of fraud, it had the highest incidence of any region, including bribery and corruption,” Kroll said. Average financial losses from corruption doubled to US$11.5 million (Dh42.2m) this year from $5.6m last year, it said.

read more of this article....

Shareholders' equity of the top 150 Arab banks is just 170 billion dollars - Gulf Banks cannot finance huge projects alone

source Zawya

Nov 02, 2009 (AFP) - Gulf and Arab banks are unable to finance huge projects in the oil-rich Gulf region and fill a credit gap created by the withdrawal of foreign banks amid the global financial crisis, bankers said on Monday.

"The total shareholders' equity of the top 150 Arab banks is just 170 billion dollars," Shaikha al-Bahar, deputy chief executive of National Bank of Kuwait, told the Kuwait Financial Forum.

"These banks are not capable of financing huge projects. We have limitations," said Bahar, adding that the cost of projects in Gulf states over the next several years is estimated at more than 2.1 trillion dollars.

The global financial crisis has resulted in a major credit squeeze, forcing many countries in the region to cancel or postpone hundreds of projects for a lack of finance that was mainly provided by international banks.

The cost of lending also became expensive, thus raising the cost of projects.

Jean-Christophe Durand, BNP Paribas managing director in the Gulf, said good projects will still be able to attract capital at the right price.

"(But) we still need international banks," for financing of major projects in the Gulf, he said.

Abdulaziz al-Ghurair, chief executive of Mashreq Bank in the United Arab Emirates, said Gulf banks can fill part of the credit gap with some help.

"Gulf banks can fill the (credit) gap created by foreign banks... provided risk is distributed at all Gulf states and with help from other sources," he said.

Speakers said cash-abundant Gulf governments are required to play a key role in financing mega projects, while others said local investment companies should also contribute.

Banks in the Gulf have been strongly affected by the credit crunch and many were exposed to bad debt, resulting mainly from a slide in the value of assets and problems at investment firms and family companies.

All central banks in the region have asked banks to allocate provisions against bad loans, a process that impacted profits of Gulf lenders.

Former Kuwaiti finance minister Mahmud al-Nuri said he believes Gulf banks will not be able to face the post-crisis conditions without key mergers.

"I believe that over the next five years, there should be three to four regional bank mergers. This is very necessary," he said.

Ghurair said there has been no strategic plan for bank mergers in Arab countries and the few mergers that took place were among distressed banks. "I hope there will be some strategic mergers in the next decade."

Dubai Good News - Dubai property dispute victims to get free legal advice - Let`s Hope that this is not again only a promise

source Arabian Business

Dubai Land Department on Monday announced a new initiative to introduce a free legal service to support home owners involved in real estate-related court cases.

The announcement follows a meeting between senior Land Department officials and representatives of law firms to finalise details of the move.

The Land Department said an agreement had been signed which would see the law firms become part of a new Legal Care Group.

The group will bring together senior lawyers, professional firms and consultants to offer free legal assistance to members of the public with "genuine real estate issues" who might otherwise be dissuaded from taking action because of the prohibitive cost of fees, the Land Department said in a statement.

Mohammed Sultan Thani, assistant director general of the Dubai Land Department, said: "The objective of this initiative is not merely to meet a need but to ensure fairness and justice is available to anyone who might have a concern which involves property, no matter their circumstances.

"This reflects the government's commitment to ensuring there is in place a comprehensive equitable system of legalizing ownership and property transactions."

He added: "Now, no one is prevented from pursuing their rights merely because of the possibility they might be priced out of the legal system."

Richard Green, head of research at CB Richard Ellis Middle East, said: "The offer of free legal advice is another step in the right direction. Overall confidence in the legal dispute system has been somewhat low due to a time lag in addressing the current case backlog.

"This announcement will go some way to renewing faith in the system as well as providing confidence to individual investors facing financial difficulties in their disputes against developers.

"Overall this is seen as another positive advancement for the Dubai market."

In August it was reported that property dispute cases that were originally submitted to the Real Estate Regulatory Agency (Rera) and Dubai Courts are now being dealt with by Dubai’s new Property Court.

The new court, which started operations in October, was set up under the First Instance Court to deal exclusively with property-related cases.

German Sebastian Vettel wins Abu Dhabi Formular1 Grand Prix - Congratulations to our German Hero

Congratulations 
  
Sebastian

we are proud of you






more Stories about the Formular 1 GrandPrix Abu Dhabi 2009 read The National

Dubai Properties Chairman arrested on suspection of embezzlement

source Bloomberg October 30 2009

Oct. 30 (Bloomberg) -- Hashim Al Dabal, chairman of Dubai Properties LLC has been arrested on suspicion of embezzlement at the state-owned company that’s in merger talks with Emaar Properties PJSC, the emirate’s attorney general said.

“Mr. Al Dabal is accused of abusing his position and earning millions in illegal profit,” Attorney General Essam Essa al-Humaidan said in a phone interview today. “We are questioning him almost daily and Mr. Al Dabal indicated he is ready to answer questions without having a lawyer present.”

more....

Emirates Press Law and the Media Blackout

source arbabMediasociety October 2009

On May 29, the London-based daily The Independent published an article entitled Dubai property scandal claim emerges amid media blackout. According to the report, a group of investors who had bought properties in buildings by Al Fajer Group, a company run by Sheikh Maktoum bin Hasher Al Maktoum, held a press conference to accuse the developer of fraud, according to The Independent.

The investors allege that the developer Al Fajer Properties showed them photographs of buildings it claimed were Ebony 1, Ivory 1 and Ivory 2, but were in fact buildings belonging to another developer.
 
The investors were demanding a refund totaling GBP86 million.

Unfortunately, the investors didn’t get the sort of press they had hoped for.
Incidentally, Sheikh Maktoum bin Hasher Al Maktoum is the brother-in-law to the ruler of Dubai, Sheikh Mohammed bin Rashid Al Maktoum, and soon after the press conference finished, Dubai government officials warned news agencies against publishing articles on the press conference.

“I had written half of the article when I was told by my editor to stop,” a Dubai-based reporter told The Independent. “The investor’s group has records of payment, and it’s obvious that they have been shafted, but we can’t write about it.”

Why?

Because a member of the royal family is directly involved.

To date, we have not received updates from Al Fajer Group regarding the allegations made against the company.

 
Rather than view Sheikh Maktoum bin Hasher Al Maktoum as a businessman who may have been involved in conning investors out of GBP86 million, the government views him as a royal first, a businessman second.
 
And herein lies one of the media law’s biggest problems: most UAE royals hold government offices and executive positions in companies throughout the Emirates. In fact, most UAE-based companies have some connection, either directly or remotely, to members of the royal family.
 
 How, then, can the media ever hold these individuals accountable for their actions, if stories (albeit negative ones) cannot be published if they involve a royal?
 
Sadly, the draft media law won’t help with this conundrum, and it certainly won’t help with future torture tape cases either. Article 32, which makes criticizing government officials and royals illegal, is artfully ambiguous. According to HWR’s report, “[such] a vague law invites self-serving interpretation by the government, and with courts that have proven compliant in harshly regulating speech, the result will be continued anxiety, self- censorship, and arbitrary enforcement of the law in the UAE. It appears designed to insulate the government from public accountability and criticism and would deter investigative journalism and undermine the media's role as public watchdog.”
 
According to Samer Muscati, the HWR is putting together a new report, because “the situation is more dire than we anticipated.”
 
It is dire, especially given that in spite of local restrictions on content, the world press can write and say what they want about the UAE, without ever succumbing to the country’s media laws. And the stories the government doesn’t want the local media to publicize, are being publicized anyway by journalists around the world.
 
Due to the Internet, the only way to prevent the press from airing your dirty laundry in public is by not having any dirty laundry in the first place.
 
Interestingly, the draft law is still pending approval. One has to wonder why a country that passes laws so quickly compared to other nations has taken its time with this one.
 
“I’m hoping that the reason why they haven’t signed the law is because they’re going to amend it,” said Muscati. “They need to reevaluate the law and take the recommendations that we’ve given them.”
 It is unclear why the draft law hasn’t been passed. Repeated efforts to contact the NMC for an explanation yielded little more than assurances that the government is working on finalizing the law.
 However, transparency was never one of the UAE’s strong points, which is ironic given its desire to maintain its status as a regional business hub. Without transparency, and without press freedom to report on political, business-related and social issues, the UAE is unlikely to repair its mired reputation.
 
Since the financial crisis hit the region in September 2008, bringing the nation’s billion dollar real estate industry to its wobbly knees, the UAE’s credibility as a stable and profitable developing nation was compromised. Dubai, more so than Abu Dhabi, had over stretched its budget. To date, no one knows how much debt the emirate raked up, but occasional disclosures hint at a distressed economy. Earlier this year, Dubai admitted to owing $80 billion, although analysts suspect the number is higher. Clearly, without the government providing accurate numbers, speculators will assume the worst.
 
Given Dubai’s drive to raise itself from the economic bog it created running up to the financial crisis, honesty and transparency are tantamount. And without the media’s involvement in reporting information about Dubai and the UAE’s news, any effort to regain investor confidence is slim.
 
In fact, keeping close tabs on the media, like it does with its companies, will only prove that in spite of the lessons the financial crisis has taught the business world, the UAE hasn’t grasped them yet.

read the full article here

Dubai`s off-plan buyers cash at high risk - Delayed Projects axed

source  MaktoobBusiness

DUBAI - Many real estate projects claimed to be on hold due to the collapse of the UAE’s property market have actually been cancelled, but developers do not want to admit this because then they will have to return investors’ money, industry observers say.

Observers also question some developers’ ability to repay investors when projects are finally cancelled, with the prospect of buyers losing millions of dollars.

“In the 18 months before the downturn a number of projects were announced that were not financially viable and therefore unlikely to see completion,” said Tahir Akhtar, chairman of Dubai Business Advisors, who has invested in projects across the UAE.

“Developers do not want to admit this because then they will have to return the funds.”

Billions of dollars worth of developments were launched during the UAE’s real estate boom, which had seen property prices close to double by mid-2008 from the start of 2007.

The boom was driven by speculation and easy credit, with developers funding the construction of projects through off-plan sales.

When the global financial crisis gripped the country’s real estate market prices plummeted as financing and demand dried up, leaving developers unable to fund construction.

UNDER REVIEW

Many developers have put projects on hold or have said they are reviewing projects, but few have come out and outright cancelled projects.

“If they (developers) say it’s cancelled they will have to repay the money to clients. Probably for that reason they are saying it is still on hold,” said Charles Neil, CEO of property consulting firm Landmark Advisory.

Michael Shvo, a well-known luxury real estate marketer from New York, said a developer told him privately a project that is “officially” delayed is actually cancelled, declining to name the developer.
 
“A developer told me that officially the project is on hold, but it is actually cancelled,” Shvo told a conference at Cityscape Dubai earlier this month, prompting him to call for greater transparency.

The number of real estate projects cancelled or on hold stood at around $408 billion in September, up 18 percent from $346 billion in April, according to the Kuwait Financial Centre.

The Centre, also known as Markaz, said it expects cancellations to rise further in Dubai due to the continued lack of financing and uncertain economic outlook.

UAE real estate regulations vary from emirate to emirate, but currently there are no laws governing how long a project can be on hold before a developer must refund investors’ money.

In Dubai, the UAE’s most developed real estate market, authorities are in the process assessing which projects are unviable and should be cancelled, with the findings due out before the end of the year, according to the Real Estate Regulatory Agency (RERA)

Developers are not allowed to cancel projects in Dubai without the approval of RERA and the Dubai Land Department, RERA said, adding that if a developer does get approval to cancel a project it would have to reimburse investors. 

“It will vary from project to project as which ones will go ahead. Some will end up with half-completed buildings and some may not start (at all),” Landmark’s Neil said.

INVESTOR CONCERN

Investors have become increasingly vocal in voicing their concerns about delayed projects, calling on developers to transfer their investment to another project or refund their money.

Larger companies such as Emaar Properties and Nakheel have set up schemes that allow buyers to swap their investments between projects, but smaller developers lack the project portfolio to offer an alternative, analysts say, leaving investors at risk of losing their money.

Dubai Business Advisors’ Akhtar said a group of investors he belonged to stood to lose around 150 million dirhams ($40.8 million) from projects in the UAE emirate of Ajman that now look like they may not go ahead.

“Not a lot has been done to protect investors," he said.

Dubai brought an escrow account law into force in mid-2007 in an effort to better protect investors - requiring developers to hold buyers’ money in a special bank account until the completion of a project - but many projects had been launched prior to the law, and other emirates were even later in introducing similar regulations.

“Most projects that fall under the escrow provisions of RERA have an established level of comfort and protection. Those projects that are not covered by escrow are a different situation,” said Blair Hagkull, regional managing director of Jones Lang LaSalle.

10 year old Emirati Boy 100 % owner of ACI Real Estate LLC Dubai ?

original source ExtremNews


Jungunternehmer Robin Lohmann (34) aus Gütersloh (Nordrhein-Westfalen) wurde im eigenen Hause von einem zehnjährigen Jungen als jüngster Chef getoppt.

Mohammad Ahmad Thani Obdaid Thani Al-Muhairi ist erst zehn Jahre alt und schon Boss zweier ACI-Firmen in Dubai: der ACI Real Estate LLC und des ACI Investment Project LLC. Robin Lohman ist dort sein Manager.

Das fand GoMoPa-Korrespondent Martin Kraeter (www.gomopa.net) zusammen mit Rechtsanwalt Hartmut Göddecke bei Recherchen im Departement of Economic Development (DED) in Dubai heraus, wo die genauen Firmenstrukturen des deutschen Fondsanbieters Alternative Capital Investment (ACI) aus Gütersloh eingetragen sind.

Damit sitzt also ein Zehnjähriger auf 300 Millionen Fondsgeldern, die deutsche, österreichische und schweizerische Anleger der ACI zum Bau von Türmen anvertrauten - die sogar von Boris Becker, Michael Schumacher und Niki Lauda beworben wurden. Die Projekte sind pleite, das Geld der Anleger wohl verschwunden.

Die ACI Real Estate LLC und die ACI Investment Project LLC gehören zu 100 Prozent dem zehnjährigen Moammad und seinem Vater, Ahmad Thani Obaid Thani Al-Muhairi (41).

Aber auch die beiden anderen ACI-Firmen in Dubai, die ACI General Trading Co LLC und ACI Consultancy, sind fest in der Hand eines einheimischen Besitzers: des Emiratis Ahmad Nasrulla Ismail Al-Ahmadi (57).

Al-Ahmadi besitzt aber nicht nur zwei ACI-Firmen als Mehrheitsgesellschafter beziehungsweise nationaler Agent, ihm gehört auch die YAMA International Commercial Broker LLC. Das ist die Firma, die alle ACI-Investmentobjekte im Dezember 2008 für 50 Millionen Euro offiziell gekauft hatte und dann nicht zahlen konnte. Weshalb die Anleger seit März 2009 in Deutschland vergeblich auf die versprochene Auszahlung von 50 Millionen Euro warten.

Die Lizenz der Yama war beim Verkauf schon ein Jahr abgelaufen

Die YAMA International Commercial Broker LLC wurde am 16. Oktober 1999 zum Handel mit Geschenken, Spielzeug, Kohle und Feuerholz gegründet. Die Firmenlizenz war aber bereits am 15. Oktober 2008 abgelaufen und wurde nicht verlängert. Der Verkauf fand also an eine Firma statt, die es zumindest von der VAE-Gewerbeerlaubnis her gar nicht mehr gab.

Und der Besitzer dieser Scheinfirma YAMA ist zugleich Mehrheits-Besitzer und nationaler Agent der beiden ACI-Firmen ACI General Trading Co LLC und ACI Consultancy. Die YAMA und die ACI Consultancy hatten sogar dieselbe Postfachnummer.
more....

official ACI Real Estate LLC Licence Details  ( expire of the Licence 20.September 2009)

Test Case for RERA Dubai - Investors file case with RERA over Dubai project delays

source Arabian Business
A group of around 30 investors has filed an official complaint at the Real Estate Regulatory Agency (Rera) over ongoing delays and specification changes at the Vue de Lac and Vista del Lago developments in Dubai.

Investors on the Al Attar project at Jumeirah Lake Towers accused the developer of unreasonable delays and changes being made to apartments without the consent of owners, Construction Week Online reported.

“We have been promised the project since then end of 2007. It was then pushed to 2008, then the end of 2008, and now he’s saying 2011 – which will never happen, because up to date they’ve only finished the piling,” investor Makram Mohamed told the website.

Many asserted that apartment specifications have changed so drastically that they no longer wish to purchase property in the project and want a full refund.

Investors are unhappy at what was described in a letter from Al Attar as “some small changes”, where two-bedroom apartments have been changed to one-bedroom ones.

Al Attar had revised the prices of the apartments in line with the reduction in apartment size, but investors said that they had bought two-bedroom apartments specifically and a smaller alternative was not acceptable.

“Because of the change of designation and all of this delay, we don’t want this property any more. The majority of people investing were buying to live in this property. Ninety per cent of our group wanted to live in this. Now they’ve changed the designation, we don’t need it. I bought a two-bedroom; you can’t give me a one-bed plus study,” said investor Shailendra Sainani.

“The majority of us need our money refunded and the costs absorbed. [Al Attar] needs to resell the project from the beginning.”

In addition to changes in designation, many investors are also concerned that delays to the project will result in a huge interest bill arising from finance agreements that can only be concluded following apartment handover.

Some investors took out finance agreements in 2006 under the impression that the project would be handed over in 2008. They are now facing the prospect of paying five years’ worth of interest on finance agreements, should the project be delivered according to a new completion date of 2011.

Some investors also query Al Attar’s ability to deliver the project on time.

“Can we still believe Al Attar can deliver in 2011, if they couldn’t even start construction in the last three years?” said one investor.

The group has filed a case with Rera because they say that Al Attar Properties is refusing to communicate with them except through a lawyer.

No-one from Al Attar was able to comment on the case or development.

The case has now been filed with Rera, who said a decision on the steps it would take would be forthcoming in the next few days.

UAE collect DNA from all Residents - DNA database set to start in a year

source The National
The UAE aims to start collecting genetic samples from residents within 12 months as part of its controversial DNA database project, the programme’s director said yesterday, making it the first country in the world to do so.Dr Ahmed al Marzooqi, the director of the National DNA Database, also said the order for millions of people to allow lab technicians to collect samples of their DNA by swabbing their cheeks would probably be given as a security directive and not require the passage of new legislation.

“The first step is to set up the infrastructure and hire the lab technicians,” he said in an interview with The National.

“This should take us approximately one year.”

Then, he said, the UAE would start collecting DNA samples from the general public, beginning with juveniles.
“The aim is to eventually have a profile of the entire population,” said Dr Marzooqi, who is also the chairman of the DNA Working Group, made up of various police forces across the Emirates.
“Our goal is to sample one million per year, which could take as long as 10 years if you factor in the population growth.”Some officials have suggested that the DNA programme may require new legislation, which would then need to be considered by the Federal National Council.
But Dr al Marzooqi said this might not be the case.
“We are not sure if this will go through the Federal National Council or not,” he said. “It could simply be decided as a security matter and not need the legislation of the FNC.”
The legislative route seems increasingly remote given that a new government department, the National DNA Database, has already been formed within the Ministry of Interior and collection kits ordered to help the police gather genetic material.

At present, only 5,000 DNA profiles are stored, all of convicted felons.

The notion of collecting DNA samples from non-criminals has raised ethical concerns about privacy protection.
In Britain, for example, such use of DNA was contested last year in the European Court of Human Rights, which ruled that Britain must purge non-criminal genetic material from its database.
The UAE has not accepted the jurisdiction of any such body.

Even attempting such a database – in which DNA is gathered from the entire population, even those who have never gone through the legal system – is basically unheard of, said Sir Alec Jeffreys, the British genetics pioneer who invented the DNA profiling system.

He expressed concern over the lack of legislation required for a national database.
“It will be interesting to see how this develops,” he said.

“How this works out will really set the scene for how other countries approach this problem. If it’s seen as a great success which the population and citizenry fully endorse, I think it will open the way for a lot of other countries going down this route.

“If it turns into a disaster for whatever reason, that will be the end of the story. You are the interesting experiment at this point.”
Dr al Marzooqi, who is also Interpol’s single Middle Eastern representative in its DNA Monitoring Expert Group, said he was aware of the project’s challenges.

“We are certain the pros will outweigh the cons,” he said. “The issue of privacy is just as important for us as it is important for the public. We will implement strict usage rules and will take secondary tests in court cases to verify the identity matches.”

Other nations could use information from the UAE’s data bank, but not access the material, he said. Treaties and other international agreements would dictate the specifics.

“If there is co-operation with the country seeking the DNA profile, we share this information through Interpol – only the DNA profile, and obviously not the sample,” he said.

Because each country may have its own database of DNA profiles, Dr al Marzooqi said, databases would not be merged with those of any other country.
“Not every country who asks will be given this information,” he said.
The database, he added, would be “instrumental in helping with unsolved crimes, identifying unknown bodies and will also be a great help in major disasters, either man-made or natural”.

How safe are your Mobile calls ?

A company called Secusmart has developed an advanced encryption and authentication system to provide secure cellphone communication.

According to André Stürmer, operations director of the TriVest Group, South African distributors of the German developed Secusmart chip: “The hard fact about cellphone security is that you should always assume you have unwanted listeners. In countries where more and more business is conducted over the mobile phone network, such as is the case in Africa, this is particularly relevant."

GSM-based communications can be attacked in three different ways:

1. An attack on the transmission network.

2. An attack on the air interface.

3. An attack by ID spoofing.

During an attack on the transmission network, the speech data is transferred clearly, and can be intercepted through legal as well as illegal measures. Air interfaces can be actively and passively attacked. An active attack on the air interface is performed by an IMSI catcher. The IMSI catcher makes use of the lack of authentication between the network and the mobile phone and intercepts the data by placing the phone on its ‘private’ network. Additionally, the IMSI catcher disconnects the normal GSM encryption. Not only does the cost of around R2 million limit its use, but it is also difficult to deploy and the active interception means that the use of the IMSI catcher can be traced.

A passive attack of the air interface requires cracking the A5/1 encryption. The two possibilities are:

1. GSS ProA - GSM interceptor

* On-the-fly decryption of up to 100 speech connections.

* Simultaneous interception and content analysis.

* Cost is approximately R750 000.

2. Open-source projects

GSM cracking project/A5 busters

The threat by this type of attack is high, as the interception cannot be traced and the entry barrier is low.

The cheapest alternative is to duplicate the caller ID – this is known as ID spoofing. Sites such as www.spoofcard.com show how easy and cheap this type of attack can be. The invader communicates the false call number and the victim trusts the number, resulting in them divulging confidential information. This threat by caller ID spoofing is extremely high because it is possible with any telephone.

These points illustrate that secure mobile communication requires more than just encryption. For this reason, Secusmart’s solution ensures encryption and authentication. Certificate authentication protects against caller ID spoofing thanks to the public key infrastructure (PKI). The Secusmart solution is independent of the mobile phone and it requires no changes to the device. The usage is simple, does not impede normal phone usage, no loss of battery time and intuitive handling, with no degradation in speech quality.

The solution makes use of crypto hardware integrated in a microSD card, which encrypts voice calls end-to-end using a 128-bit AES encryption algorithm. Authentication is certificate-based, using an elliptic curve Diffie-Hellmann key exchange and with a key agreement within 3 seconds. The microSD card is a standard chip for mobile data storage with up to 2 GB Flash storage. Additionally, it contains a secure PKI smartcard controller (NXP SmartMX P5CC072) with TCOS 4.0 operating system. The design has a high-speed AES co-processor which consumes little battery power and securely stores key.
More details-  information . Secusmart

Another interesting Advice: original source Surveillance Self-Defence EFF

Critical test of Dubai's credit worthiness - Dubai `s 80 Billion Dollar debt pile

original source online WallStreetJournal by Maria Abi-Habib and Stefania Bianchi

Dubai will crank up efforts this week to tackle its $80 billion debt pile with senior officials heading to Asia to meet potential investors amid reports that one of its most indebted companies has repaid a $1.2 billion bond ahead of schedule.

Top officials from Dubai's Department of Finance will meet fixed income and Islamic investors in Hong Kong, Singapore, London, Dubai and Frankfurt starting Thursday ahead of possibly selling more debt this year, according an invitation sent to bankers and seen by Zawya Dow Jones Monday.

An external spokesman for the department said the roadshows are part of "ongoing investor communication" but bankers suspect the meetings could be an early sign that Dubai may be preparing to issue the second half of its $20 billion bond program launched in February to support its economy and embattled companies.

"This will be the first time investors hear the Dubai story from officials post-crisis," Abdul Kadir Hussain, chief executive of Mashreq Capital told Zawya Dow Jones. "How this story is received will determine how successful Dubai will be over the next three to five years."

At the height of the global financial crisis, the Abu Dhabi-based central bank of the United Arab Emirates supported Dubai by underwriting the first half of its planned $20 billion bond program to bail out the sheikdom's struggling companies and economy.

Recently, Dubai officials including Omar bin Sulaiman, the head of the Dubai International Financial Center, have said they expect strong interest from private investors for the eagerly awaited second $10 billion bond.

Mohamed Alabbar, who helps oversee a committee evaluating the impact of the global credit crisis on Dubai, told CNN earlier this month that the emirate may raise the additional $10 billion by November.

The investor meetings due to start in Hong Kong on Oct. 22 are the latest sign that Dubai and its government-owned companies are trying to dig themselves out of an estimated $80 billion debt pile, most of which was incurred during the emirate's property, tourism and logistics boom.

According to Standard & Poors, Dubai has almost $5 billion worth of debt maturing between September and the end of the year. The biggest share of this debt is held by Nakheel, a unit of government-owned Dubai World. The company has a $3.5 billion Islamic bond maturing December. The bond, which will be pumped into Dubai's Financial Support Fund, is seen as a critical test of Dubai's credit worthiness.

"The Financial Support Fund is in need of further resources to fulfill its mandate of supporting Dubai's government related entities, many of which face heavy debt repayments in the coming three years," said Farouk Soussa, head of Middle East government ratings at S&P.

PAYING DEBTS

A report Monday in Middle East Economic Digest said Nakheel had repaid a 4.4 billion U.A.E. dirham ($1.2 billion) securitized bond issued in January, one month ahead of the scheduled repayment deadline of Nov. 15.
The repayment made on Oct. 15 will come as a comfort to many investors in Nakheel, and especially those concerned about Nakheel's December sukuk. A Nakheel spokesperson declined to comment when contacted by Zawya Dow Jones Monday.
Nakheel's bond repayment came on the same day that government-owned conglomerate Dubai World announced that it completed a major restructuring.

The move will help the firm save $800 million over the next three years and ease a small part of the near $60 billion of liabilities on its books. The term liability refers to a company's legal debts or obligations arising from its business operations.

Earlier this month, Dubai Holding, a conglomerate controlled by the emirate's ruler, paid back in full a $300 million loan belonging to its Sama property unit. There are also signs that Dubai is repaying some of its outstanding bills to construction contractors.

On Monday, U.K. Trade Minister Mervyn Davies said that debts owed to British contractors in Dubai have reduced, but payments remain outstanding.

"I think it has improved, but it's been a sensitive issue, and it is important that Dubai companies pay their debts," he said.

The U.K.-based Association for Consultancy and Engineering, which represents about 800 British construction firms, said in May it was tracking approximately GBP400 million in unpaid fees for building in the emirate.

(Natasha Brereton in London contributed to this story.)

To absorb the amount of commercial real estate UAE needs 150,000 white-collar jobs

source Arabian Business
The UAE needs to create at least 150,000 white-collar jobs to absorb the amount of commercial real estate expected to hit the market in the next two years, Nomura has said.

Dubai and Abu Dhabi need to create at least 100,000 and 50,000 white-collar jobs, respectively, to satisfy future supply of commercial real estate in the two emirates, the investment bank said in a note to investors.

Commercial real estate space in Dubai is expected to increase by 20m sq ft while the Abu Dhabi market could add another 10m sq ft.

In the residential market 65,000 and 15,000 additional units are expected to be completed by the end of 2011.

“This is in an environment where jobs, still real estate and construction related, are being cut,” Nomura analyst Chet Riley said.

“Capital values are stabilizing in Dubai, but growth is not expected until the latter part of 2010.”

Residential rents in Dubai could fall another 10 percent, he said.

“The residual risk has not fully unwound yet, in our view. When the risk does unwind and the financially weak developments are sidelined for good, we will become more positive on the macro real estate fundamentals.”

Consolidation among small developers would take less time if banks withhold financing, he added.

“The banking sector will not move until the current risks have been mitigated adequately, but when it does, we feel we would have passed the current pinch point,” he said.