Abu Dhabi: The capital’s economy in recent years has made major steps to diversify its economy away from oil revenues into petrochemicals, steel and aluminium. The multi-billion dirham projects are in line with Abu Dhabi’s Economic Vision 2030 that aims for sustainable growth on a solid economic basis.

According to Abu Dhabi’s Urban Planning Council some $200 billion (Dh734 billion) will have been pumped by 2013 into various infrastructure projects.

“The idea behind Abu Dhabi’s economic diversification is that if oil prices go down, there will be other sources of income to compensate [for the loss in oil revenue],” Mohammad Amerah, an Abu Dhabi-based economist, told Gulf News.

However, oil revenues are still an important source of revenue for the emirate, contributing 49 per cent to the GDP. Experts say that Abu Dhabi’s economic growth momentum will gain traction in 2011 from surging international oil prices and fast-improving global business confidence which will help boost the emirate’s non-oil income as well.

Abu Dhabi also has identified aviation and high-end business and leisure tourism as key elements in its economic growth strategy and is judiciously investing income from oil exports to become a major regional aviation hub

Dubai: Nine international companies have submitted bids for a technical study to develop clean coal-based power, the Dubai Electricity and Water Authority (Dewa) said yesterday.

In line with the strategy of Dubai’s Supreme Council of Energy to ensure supplies to meet the growing energy requirements and diversifying energy sources, Dewa last November 1 invited bids for a technical study on coal-based power generation in Dubai (currently oil and gas is used in power and desalination plants).

“This move aims to promote sustainable development and global position of Dubai, and preserving the environment and natural resources from pollution,” a Dewa spokesperson said.

Saeed Mohammad Al Tayer, managing director and CEO of Dewa, said: “This study is a key step towards the implementation of the energy diversification strategy adopted by the Dubai’s Supreme Council of Energy, in which coal is set to become part of Dubai’s energy portfolio. The strategy aims to diversify energy sources to ensure energy supply and meet the growing energy demands in Dubai.”

The study is divided into two phases. In the first phase, the selected consultant will conduct a preliminary analysis of the type of technology, type of coal and sourcing strategy which best suit Dewa’s requirements, to include logistics and infrastructure requirements, as well as environmental impacts in association with the first coal-fuelled power plant for Dewa.

The second phase will cover the development of the conceptual design for this power plant, along with the request for proposals, and the assessment and development of new regulatory elements for clean coal-based power plants.

Bid assessment

“The assessment of the bids will take place in January and February. Dewa will follow the best international practices related to clean coal-based power plants, and will count on the expertise of a reputable consultant to run the project.

“The successful bidder, and award of the contract are expected to be announced in the first quarter of 2011,” Al Tayer said.

He expressed his satisfaction with the number of bids received from international organisations in this vital field which reflects the confidence and the desire of investors to invest in such large-scale projects that are adopted and supported by the Government of Dubai.

Walid Salman, vice-president of projects and engineering and Strategy and Business development, told Gulf News: “Application of coal-based power generation in Dubai is the first of its kind in the region.

“It is a very new experience and technology and especially as we are going to apply the clean coal and not the conventional way.”

He was not sure if Dewa will apply this project by itself.

However, Salman said: “It is difficult for Dewa to do it itself and the study will recommend the best way for implementation; either with a strategic partner or with independent power production.

“Meanwhile, Dewa is evaluating the bids submitted, looking at technical and strategic parts of the project in addition to the regulations, requirements and the best areas and practices to be operated.”

He said that a Dewa team headed by Al Tayer has investigated coal power plants worldwide for a better understanding of such a new project.

“We visited many places where such a technology is approved such as China, Korea, Europe and so on to have a clear overview about coal-fired power plants.”

Satisfactory studies

However, he added: “The studies submitted by the bids are up to the standard and very competitive and the selected consultant should be comprehensive to meet all the requirements and demands of this project.”

Salman said that after five months of the announcement of the successful bid, they will go ahead with the implementation of clean coal-fired power plant.

Dubai: The UAE’s purchasing managers index (PMI), a composite indicator of the performance of the non-oil private sector, remained steady in December, indicating solid recovery in the sector.

The index, compiled by HSBC Holdings and Markit Economics, was 53.8 in October and fell marginally to 52.9 in November and registered 53 in December.

“The latest PMI reading suggests that the economy continues to normalise. The uptick in new orders is particularly encouraging but I still view this as a recovery yet to build momentum,” Simon Williams, HSBC’s Chief Economist for Middle East and North Africa, said.

The index is based on data compiled from monthly replies to questionnaires sent to purchasing executives in approximately 400 private sector companies in the UAE representing manufacturing, services, construction and retail.

Overall the survey results indicate that the non-oil private sector economy continued to expand in the final month of the year, with both output and new orders growing markedly and job creation picking up a moderate pace.

Record rise

However, stronger demand conditions, alongside unfavourable exchange rates, contributed to a series record rise in input prices.

December data points at an improvement in foreign demand for UAE non-oil private sector goods and services.

New orders rose at a robust rate that was the strongest in over a year.

Respondents cited favourable business conditions and successful promotional campaigns as key reasons for growth.

Some firms made note of a good demand from Saudi Arabia largely driven by government spending.

Index data for December shows input price inflation accelerated noticeably, with over 22 per cent of survey participants noting an increase since November.

Stronger demand for commodities and unfavourable exchange rate fluctuations were the principal factors underlying inflation, according to respondents.

“Even though there was some increase in output prices, it is unlikely that this rise fully compensates for the pick-up in input costs,” Williams said.

Average labour costs paid by UAE non-oil private sector companies rose slightly in December, following a fractional decline in November.

It was the eighth time in the past nine months that firms in the sector had increased their staff costs.

Panellists indicated that higher employee payments reflected better company performance.

In anticipation of further new order growth, but also to guard against future commodity price rises, UAE private sector companies built up input stocks in December. Holdings of raw materials and semi-finished goods grew for the second month running and at a series record rate.

The survey shows new work in the UAE non-oil private sector grew markedly in December.

Combination of factors

Around 21 per cent of the survey panel recorded an increase — approximately twice the proportion that saw a decline.

Reports showed that a combination of improved demand conditions, product innovations and aggressive marketing drove the latest expansion.

The survey results confirm recent reports from a number of international and multilateral agencies that in the UAE economy is going through a strong economy phase largely driven by the non-oil private sector. The International Monetary Fund has forecast 2.4 per cent growth for 2011, and Standard Chartered has forecast 4 per cent growth for the UAE economy.

“Although there is good enough reason to believe that the UAE economy is on the recovery path we should keep in mind that we are still at an early stage of that recovery process

Dubai Properties Group development is expected to further ease rentals in dubai

• By Aya Lowe, Staff Reporter
• Published: 00:00 September 14, 2010, Gulf News Read the entire news

By Arno Maierbrugger, Deputy Business Editor

Published: 12:14 July 24, 2010, Gulf News

Dubai: A “first offer of its kind” has been made available by property agency Landmark this weekend, according to property advertisements on Saturday.

The agency is offering rent payment with credit cards for units in Dubai’s Discovery Gardens, a method formerly uncommon on the Dubai property market.

The offer was confirmed to Gulf News by one of Landmark’s agents on Saturday.

The acceptance of credit card payments depends on how many annual payments a tenant wishes to make, property agent Eddy told Gulf News.

The tenant has the option to pay the whole year’s rent by credit card. If he wants to split the rent and pay half-yearly or even monthly, there are still post-dated cheques necessary. “The landlord needs some security,” Eddy said.

All credit cards are accepted in this offer. No discounts will be given if a one-year off payment is made by card, the agent said.

However, banking experts say that this offer has to be handled with care.

First, it needs a huge overdraft facility on the credit card, and even if the overdraft is repaid in monthly installments from the tenant’s salary, accumulating interest will make this payment scheme an expensive exercise.

Second, not every bank might agree to book a full-year rent payment on a credit card because this form of payment indicates that a tenant could already be struggling with other payments and has a higher likelihood to default.

World’s Furthest Leaning Manmade Tower overtakes Italy’s Tower of Pisa

• By Himendra Mohan Kumar, Staff Reporter
• Published: 00:00 June 6, 2010, Gulf News

Top executives discuss partnerships and speculative investments CityBuild Abu Dhabi to run alongside main event Read the entire news

Fund to target investors from the Middle East, as well as from the UK and Europe

Zawya Dow Jones

Published: 00:00 March 15, 2010,Gulf News

Dubai: Matrix Property Middle East, a joint venture between UK-based financial services firm Matrix and Qatari firm ME Alignment, will launch a $300-million (Dh1.1-billion) GCC real estate fund this year to tap investment opportunities in the region’s property market, the company’s general manager and investment director said Sunday.

The Matrix ME Alignment Fund, which will be headquartered in Qatar, will focus on investing in “high quality income generating projects predominantly in the industrial, residential and office sectors mainly in Saudi Arabia, Qatar and the United Arab Emirates”, Will Hean told Zawya Dow Jones by telephone.

“We’ve seen that now is a good time to buy in this region,” Hean said. “There are good opportunities over the next 12 months to acquire high-yielding income-producing assets at prices which will give good capital growth over the medium term.”

Matrix will target investors from the Middle East, as well as from the UK and Europe, Hean said.

Registration process on

Matrix Property ME is in the process of registering the fund management company with the Qatar Financial Centre and hopes to launch its first fund shortly afterwards.

“It’s difficult to say how long the process will take, but we hope that the fund will be launched in the third quarter,” Hean said.

Matrix also plans to launch sector-specific funds focusing on logistics and budget hotels, Hean said.

“It’s too early to say how large these funds will be, but ideally they’d be the same size as the property fund,” he said.

Lack of liquidity and limited supply suggest low price mobility

By Himendra Mohan Kumar, Staff Reporter Published: 00:00 February 20, 2010,Gulf News

Read the entire news

The municipality made this announcement through local media and set a deadline of February 14, 2010 as the last date for tenants and landlords to fall in line with the building regulation.

By Sunita Menon, Senior Reporter Published: 00:00 February 8, 2010 Reader comments (10),Gulf News

Authorities are working to improve the safety and security of the public and environment. Image Credit: Kishore Kumar/Gulf News Dubai: Illegal partitions and constructions in residences and buildings will be demolished and they will face a cut in utility services said Dubai Municipality on Sunday.

The municipality made this announcement through local media and set a deadline of February 14, 2010 as the last date for tenants and landlords to fall in line with the building regulation.

The municipality called upon landlords and tenants who are violating building rules such as overcrowding apartments with families and bachelors to show active participation in community partnership in its effort to keep Dubai free of building violations and unplanned growth.

Once the February 14 deadline expires, the municipality will cut utility services to these buildings and the residences and demolish or remove any irregularities.

The other main objective for the enforcement of the rule is the safety and security of the public and environment.

The campaign on illegal constructions was first initiated in 2004 by the municipality and it has been since running in phases. In 2008 the municipality had notified the building owners and real estate companies not to rent out these premises to bachelors and had warned that failing to comply would see disconnection of all utility services.

Fines were not restricted to landlords but were extended to tenants who fail to comply with the regulations.

Gulf News in an earlier report had revealed how illegal real estate agents have also been instrumental in overcrowding buildings and villas. They divide the rooms with wooden partitions and then sublet to families and bachelors in order to make a lucrative business. Tenants were provided with handwritten rent receipts instead of a proper contract.

Meanwhile, tenants who live in sharing accommodation in buildings and villas said that they will turn to their landlords who have taken money for them for the accommodation.

The majority of those living in sharing flats and villas are bachelors and families who belong to the low income group.

Mazhar Khan, a Pakistani, said that he was forced to share a one-bedroom flat after he lost his job a couple of months back. He used to earn Dh8,500 per month but now earns Dh5,500 at a new clerical job.

“I too do not like to live in sharing but what can I do? We live in a two-bedroom flat, each bedroom and the living room are sublet to a family while the kitchen is common. I pay Dh1,200 per month for that single room. I myself do not like to live in such cramped space but there is no way out for me, not until I secure another job that will give me the income to rent a single bedroom flat for my family,” he said.