Nakheel to develop Dh2.5 billion villa complex at Nad Al Sheba in Dubai

Arabtec shares suspended as rumours of Aabar buyout surface : Thursday, July 17 - 2014 @ 14:12 The Dubai Financial Market (DFM) suspends trading in shares for Arabtec. Shares in construction giant Arabtec were suspended today (Thursday, July 17), following reports late on Wednesday that Aabar Investments, Arabtec’s second largest shareholder (18.94%), was planning to buyout some of the shares currently owned by former CEO, and biggest shareholder (28.9%), Hasan Ismaik. Ismaik resigned as CEO of the company on June 18, only two weeks after raising his ownership in the firm from 8% to his current 28.9% share. Coupled with state-owned Aabar decreasing its stake from 21.57% to 18.94%, confidence in Arabtec rapidly fell throughout June, with the firm losing 50% in market value within days. Although stability was drastically regained by early July, as Aabar announced it would not be abandoning its partners, there was no mention as to what would be of Ismaik’s shares considering his dramatic exit, nor indeed what caused the saga and what was in the pipeline. Even the latest reports that Ismaik may be selling to his former partners fail to explain why each party is sharply contradicting their buy/sell strategy throughout June. Nonetheless, such news is likely to further rally support for Arabtec investors, and as recent weeks have shown, the entire market. It is for this reason that regulators have seemingly learnt their lesson and are awaiting clarity on the issue before allowing the ongoing Arabtec saga to, once again, dictate market performance. Representatives of Aabar Investments and Hasan Ismaik have both declined to comment on the reports. ========================== House of cards: Arabtec saga exposes Dubai market is resting on shaky ground : Sunday, July 13 - 2014 @ 10:06 By Philip P. Merrell A turbulent week at Arabtec has contradicted an IMF forecast that Dubai is no longer a construction-driven economy. Last week’s Country Report by the International Monetary Fund (IMF) highlights that Dubai’s “economic growth has become more broad-based” compared to crisis-stricken 2008. It points out that the real-estate sector’s share in the Dubai economy has dropped from 14 per cent in 2008 to 8 per cent in 2013. However, throughout last week, construction giants Arabtec endured first turmoil, then a surge in shares with a profound effect on the Dubai Financial Market (DFM). As such, the controversy surrounding this saga has reignited the vulnerability of Dubai faces as a result of careless management within the real-estate sector. In the past 12 months, Arabtec, backed by Abu Dhabi investment giants Aabar, announced a series of high profile ventures, from a $40 billion deal to build one million homes in Egypt, to intentions of expanding their activity into the oil and gas sectors. Consequently, the market value of the firm rocketed in the last year by 323 per cent. However, trouble began looming in early June of this year when CEO Hasan Ismaik upped his stake in the firm from 8 per cent to 28 per cent, only to ‘resign’ two weeks later. Simultaneously, Aabar had decreased their shares in the company from 21.57 to 18.94 per cent. Whether Ismaik’s departure was voluntary or not, investors began fearing the worst, and throughout June, shares at Arabtec began to plunge, eliminating $6.5 billion in market value. Last Wednesday (June 2nd), the new leadership organised a press conference in which they categorically denied rumours that Aabar Investments would be deserting them, as well as confirming that no future projects would be cancelled or delayed. Buoyed by this stability, but also the low share price, which had dropped by 45 per cent throughout June, confidence was instantly restored as Arabtec shares began to soar once again. In the following four sessions, they climbed a staggering 55 percent to AED4.2, although this was still 46 per cent below their record peak in May. Crucially, the extreme volatility surrounding Arabtec stock has had a profound effect on the construction sector and, more worryingly, the entire DFM. On June 30, when Arabtec shares dropped a maximum allowed 10 per cent to a record low of AED2.61, other Dubai real-estate powerhouses helplessly followed suit. Drake & Scull International also endured a maximum daily loss of 10 per cent of their value, Union Properties fell 9.55 per cent, and Dubai Investment Co dropped 8.16 per cent, whilst regional giants Emaar Properties fared slightly better losing 3.67 per cent in value. Moreover, the DFM, as a whole, recorded a loss of 4.41 per cent by the end of the day. Unsurprisingly, the rapid surge in Arabtec stock that followed also transpired in a bullish rebound by the DFM, which has seen growth in consecutive sessions since the beginning of the month. Throughout July, the DFM has recorded a total gain of 15.7 per cent. This saga has raised several concerns, which demand answers in order to prevent another property crash from occurring. Namely, why had regulators turned a blind eye to such irregular management activity in Arabtec? A CEO tripling his shares in a firm that aims to become one of the globe’s top 10 companies by 2018, and then stepping down within two weeks citing ‘personal reasons’, is nothing short of scandalous. How Ismaik financed this acquisition is equally puzzling and it is this sheer absence of transparency that prompted investors to push Arabtec into turmoil. Secondly, how is it possible that such a crash within the construction sector has gone relatively unpunished? Despite losing $6.5 billion within days, Arabtec, like others in the sector, is back on the rise and showing no signs of slowdown. Nonetheless, the positive rebound is no cause for celebration, as it exposes that Dubai’s real estate is more of an investors’ market than a homeowners’ one. Whilst steps have been taken to limit property flipping, such as increasing deposit and registration costs, in a city ever-engulfed by extravagant real estate projects, it will be difficult to curb this problem entirely. Finally, the Arabtec saga contradicted, to a large extent, reports by the IMF that Dubai’s economy is no longer as susceptible to failures within the construction sector. The events of the past few weeks proved that large real estate firms are more than capable of dragging the entire market down with them, depending on internal activity. Moreover, the report suggests, “the robust growth for Dubai in the coming years will be driven by big real estate projects and huge spend in preparation to host the Expo 2020”. This will mean grander and costlier projects, perhaps, than ever before as plans to build the world’s largest mall and the world’s busiest airport have already been launched (although, ironically, Dubai already holds these titles). The IMF’s suggestion on how to ensure these mega-developments do not overrun on cost and overheat the market is to ensure that “careful macroeconomic management and appropriate strategic planning measures” are in place. Management, Arabtec has taught us, being the key word. ==================== Nakheel to develop Dh2.5 billion villa complex at Nad Al Sheba in Dubai Sananda Sahoo July 19, 2014 Updated: July 19, 2014 05:38 PM Read more: http://www.thenational.ae/business/industry-insights/property/nakheel-to-develop-dh25-billion-villa-complex-at-nad-al-sheba-in-dubai#ixzz37yziIBe1 Follow us: @TheNationalUAE on Twitter | thenational.ae on Facebook The developer Nakheel’s villa complex in the Nad Al Sheba area of Dubai that will comprise hundreds of villas will run up construction costs of Dh2.5 billion. The development will include 900 units of three to five-bedroom villas for lease, besides 100 serviced homes. All of these come with private swimming pools. Artists’ impressions of the yet-unnamed gated community show low-rise villas in landscaped surroundings, spread over 2.5 million square feet. The development will include a clubhouse and a retail centre with shops, cafes, a community pool and sports facilities. The separate complex of 100 serviced villas will include a health club with spa, a lap pool and restaurant, besides housekeeping and laundry services. Residents of the complex will have access to Nakheel’s beach facilities on Palm Jumeirah and daily transport services to the city’s malls and attractions. As Dubai’s composite business confidence index continues to grow, the real estate sector is recovering from the lows of the global financial crisis of 2008. In the first quarter, the index was at 135.5 points, an increase of 22.4. This month, Dubai Holding announced the Dh25bn Mall of the World project, which will include a mall, a theme park, 100 hotels and serviced apartment buildings. In a separate announcement yesterday, Dubai’s Azizi Developments launched 99 apartments, whose total value is Dh140 million, in Al Furjan near Discovery Gardens. Called Azizi. Orchid Residence, the project comprises one to three-bedroom furnished apartments. Prices start at Dh950 per sq ft and construction is expected to be complete by December next year. The apartments, which are all up for sale, start at 700 sq ft. The total value of real estate sales in Dubai was Dh21.4bn year to date. The figure was Dh38.3bn for the whole of last year, according to the Dubai Land Department. Most of the uplift in real estate transactions last year came from land transfers, according to JLL’s first quarter report on the Dubai real estate market. “Despite this increased activity, there remain few reported transactions of completed, income producing assets,” it said. Prices of residential units in the first quarter rose 33 per cent year-on-year and average rents increased 23 per cent year-on-year in Dubai, according to JLL. However, price growth stalled in premium locations in the second quarter, the broker Asteco said this month. This month, Nakheel reported a net profit of Dh1.85bn, an increase of 54 per cent for the first half supported by revenue growth from property development, retail, leasing and leisure businesses. It said it would also prepay Dh7.9bn owed in bank debt in August, four years ahead of a March 2018 due date. The construction value of the Nakheel project in Nad Al Sheba is estimated at Dh2.5bn. Dubai’s Arif and Bintoak Consulting Architects and Engineers will design and provide engineering services at a cost of Dh27 million. Expected to be completed in 2016, Nakheel will release construction tenders in three months, and award a contract by the end of the year. “Our current residential leasing portfolio of almost 17,000 homes continues to be in huge demand, with almost 100 per cent occupancy across the entire range,” Ali Rashid Lootah, the company’s chairman, said in a statement. Nakheel’s residential portfolio includes The Gardens, International City, Discovery Gardens and Jebel Ali Village. More supply such as the 942 units of three-bedroom town houses at Warsan Village near International City, and Nad Al Sheba is in the pipeline. Also waiting to come onstream are 10 hotels, including luxury and budget properties at The Palm Tower on Palm Jumeirah, Deira Islands, Dragon Mart and Ibn Battuta Mall, over the next five years. Expected this year is a 246-room three-star hotel at Dragon Mart. ssahoo@thenational.ae ======================= Second tallest tower in UAE nears completion Marina 101 will be second only to the Burj Khalifa. Courtesy Sheffield Holdings Second tallest tower in UAE nears completion Second tallest tower in UAE nears completion Second tallest tower in UAE nears completion The National staff July 21, 2014 Updated: July 21, 2014 03:14 PM       Related Phoenix Towers plan to pip Kingdom Tower and Burj Khalifa as world’s tallest Phoenix Towers plan to pip Kingdom Tower and Burj Khalifa as world’s tallest Burj 2020 in Dubai to feature world’s highest observation deck In pictures: The tallest towers in Abu Dhabi In pictures: The world’s ten tallest residential buildings New York hotel chain to manage 101-storey project at Dubai Marina Poised to become the second tallest tower in the UAE, Marina 101 in Dubai is now 80 per cent complete according to its developer Sheffield Holdings. The 425-metre tower, which will trail only the 828m Burj Khalifa, is expected to be completed early next year. Dubai’s Princess Tower is currently the second tallest tower in the UAE, standing at 413m, ahead of 23 Marina, which is 393m. “Visually, the tower will be a very distinctive mix-use tower in the midst of the Marina,” said project manager and engineer, Mohammad Jeilani. “We have completed a large part of the construction, with merely a few elements left. Construction is well underway, with no delays to speak of.” Upon completion the tower will feature 420 hotel rooms and hotel apartments, 60 three-bedroom residential units, eight duplexes, a five-star hotel, plus health clubs and swimming pools on different levels. Mock-ups of the hotel apartments and residential units are ready for viewings by investors and potential end users, Sheffield Holdings said in a statement. business@thenational.ae =============

Spurning Gulf Arab pressure, Qatar says foreign policy "non-negotiable"

Haiderium Qalandram Mastam Banda e Murtaza Ali Hastam.. Peshwa e tamam Rindanam Ke Sag e Koo e Sher e Yazdanam!

Haiderium Qalandram Mastam Banda e Murtaza Ali Hastam.. Peshwa e tamam Rindanam Ke Sag e Koo e Sher e Yazdanam! https://t.co/hvXmoPbb7Z

— Ajmal Jami (@ajmaljami) March 11, 2014

https://t.co/hvXmoPbb7Z Mon, Mar 10 13:02 PM EDT DOHA, March 10 (Reuters) - Qatar on Monday again dismissed demands by three fellow Gulf Arab states for changes to its foreign policy, calling its independence "non-negotiable" in a further sign that it will continue to aid Islamists such as Egypt's Muslim Brotherhood. In an unprecedented move within the Gulf Cooperation Council of allied hereditary monarchies, Saudi Arabia, the United Arab Emirates and Bahrain recalled their ambassadors from Qatar on March 5, accusing Doha of failing to abide by an accord not to interfere in each others' internal affairs. The three GCC states are especially angry at Qatar's support for the Brotherhood, an Islamist movement whose ideology challenges the principle of conservative dynastic rule long dominant in the Gulf. "Qatar is to take decisions, and follow a path, of its own," the official Qatar news agency quoted Foreign Minister Khaled al-Attiyah as saying in a speech in Paris. "The independence of Qatar's foreign policy is simply non-negotiable. Therefore I strongly believe that the recent statements made by Saudi Arabia, the United Arab Emirates and Bahrain have no relationship whatsoever with the internal security of the GCC countries, but they are related to clear differences in views on international issues." A source close to Qatar's government said last week the dispute had more to do with issues in the wider Middle East such as the crises in Egypt and Syria, than about matters affecting fellow Gulf states. However, Saudi Arabia and the UAE do see Qatar as at odds with them on Gulf issues. They resent the way Doha has sheltered prominent Brotherhood preacher Youssef al-Qaradawi, a critic of Saudi and UAE authorities, and given him regular air time on its pan-Arab satellite channel Al Jazeera, and on Qatari state television. Attiyah said one of Qatar's basic foreign policy principles was its support for popular aspirations to justice and freedom in the Arab world. Islamists have figured prominently in the Arab Spring uprisings since 2011. Qatar's cabinet voiced "regret and surprise" last week at the withdrawal of the Saudi, UAE and Bahraini ambassadors but said Doha would not respond in kind and that it remained committed to GCC security. The U.S.-aligned GCC, formed in 1981 and also including Kuwait and Oman, has managed to present a united front at times of threat ranging from Iranian revolution on the other side of the Gulf to Iraqi invasion. (Reporting by Amena Bakr, Editing by William Maclean and Mark Heinrich) Qatar's Doha Insurance to launch $120 mln rights issue March 17 Mon, Mar 10 05:08 AM EDT DUBAI, March 10 (Reuters) - Qatar's Doha Insurance said on Monday it would offer new shares to shareholders from March 17 through March 31 as it aims to raise 436.7 million riyals ($119.9 million) and nearly double its capital. Shareholders will be able to buy up to 24,260,000 new shares at a price of 18 riyals per share, a discount to the closing price of 24 riyals on Sunday. Shareholders will be allowed to subscribe for nine new shares for every 10 they currently own. Doha Insurance has said the capital boost would increase financial solvency and improve its credit rating, which would allow it to compete for large projects locally and internationally. ($1 = 3.6415 Qatar riyals) (Reporting by Olzhas Auyezov; Editing by Jason Neely) ================== MIDEAST STOCKS-Egypt gains marginally after $40 bln housing deal; Gulf mixed Mon, Mar 10 09:11 AM EDT * Huge housing deal lifts Egypt, Arabtec * But execution is a concern * Saudi developer Dar Al Arkan drops on no-dividend plan By Nadia Saleem DUBAI, March 10 (Reuters) - Egypt's shares rose slightly on Monday after a deal between the country's army and a Dubai builder for an affordable housing project worth 280 billion Egyptian pounds ($40.2 billion). Cairo's benchmark index advanced 0.5 percent, recovering early-session losses and boosting 2014 gains to 17.6 percent. Under a deal with Cairo's army-backed government, Dubai's Arabtec will build one million homes in a project that will cover 160 million square meters across 13 sites in Egypt for lower income individuals. "People are a bit skeptical on the project," said Mohamed Radwan, director of international sales at Pharos Securities. Some analysts said executing the colossal project could be a challenge. "The scale of the project is... well beyond anything Arabtec has previously managed," brokerage Arqaam Capital said in a note. Politically and economically, the project is one of the biggest initiatives since the ouster of President Mohamed Mursi last July. "It adds more value to Arabtec itself although there's only a shallow performance in terms of magnitude." Shares in Arabtec rose 1.7 percent. Other UAE shares were choppy as investors looked for fresh catalysts after an early-year surge. Dubai's measure climbed 0.2 percent, taking 2014 gains to 23.1 percent but has been trading sideways for three weeks. Abu Dhabi's index fell 1.0 percent to its lowest since Feb. 9. The measure has also been range-bound, trading within a range of 200 points for four weeks. "What you're seeing now is short-term uncertainty - Q4 earnings are out and Q1 is a few weeks away so it's a natural lull at this time," said Sanyalaksna Manibhandu, senior analyst at NBAD Securities. "We've had geopolitical concerns on Ukraine and Qatar but I think there is more upside to prices this year." He cited catalysts such as an MSCI upgrade to the emerging market status that will take effect at the end of May, along with possible earnings momentum for the first quarter. Some of the optimism over the upgrade has already been priced in, but there could be a further boost as index funds flow in upon implementation. Analysts estimate UAE and Qatar could both draw hundreds of millions of dollars in fresh investment thanks to the upgrade. Qatar's measure gained 0.6 percent, up for a third session after last week's brief tumble because of a diplomatic row in which Saudi Arabia, the United Arab Emirates and Bahrain withdrew their ambassadors, apparently because of Qatari support for Islamists. Saudi developer Dar Al Arkan fell 4 percent after the firm's board proposed not to pay out 2013 dividends. It said the decision would support future business growth, but it has yet to be approved by shareholders at the annual general meeting. Saudi Arabia's measure was little changed at a 68-month high but turnover exceeded 10 billion riyals ($2.67 billion). MONDAY'S HIGHLIGHTS EGYPT * The index climbed 0.5 percent to 7,976 points. DUBAI * The index gained 0.2 percent to 4,150 points. ABU DHABI * The index fell 1.0 percent to 4,829 points. QATAR * The index gained 0.6 percent to 11,710 points. SAUDI ARABIA * The index eased 0.07 percent to 9,344 points. KUWAIT * The index slipped 0.3 percent to 7,492 points. OMAN * The index ticked up 0.06 percent to 7,092 points. BAHRAIN * The index rose 1.2 percent to 1,387 points. ===================== Arabtec Holding net profit surges by 171pc in 2013 March 19, 2014 - 11:47:03 am DUBAI: Arabtec Holding PJSC, a leading engineering and construction group of companies specialising in complex projects in the Middle East and North Africa region, revealed a net profit attributable to parent company of over AED377.7 million, up by 171 per cent compared to 2012. Arabtec, in which Abu Dhabi state fund Aabar is a key stakeholder, said it made a net profit of 122 million dirhams in the quarter, compared with 32 million dirhams in the corresponding period of 2012, on revenue up 39 per cent at 2.3 billion dirhams. The Company went through a major management shake-up last year backed by Aabar. It has won a series of contracts in the region recently including high-profile projects such as the development of Abu Dhabi's main airport and building of a Louvre museum and a contract to build 1m homes in Egypt. "Since the start of 2014, our company's subsidiaries have been selected to execute a series of new projects, with a total value of 180bn dirhams, which gives us visibility on our earnings growth for many years to come," Hasan Ismaik, the chief executive of Arabtec said. The company said its backlog of work in 2013 increased by 22pc over the previous year to 24.1 billion dirhams. Arabtec also proposed a cash dividend of 0.1 dirhams per share plus bonus shares worth 30pc of its share capital. The company gave no dividend for 2012. Full-year net profit rose to 377 million dirhams from 139 million dirhams in 2012. (QNA) =Arabtec Q3 profits fall following company-wide restructuring after Hasan Ismaik departure Lucy Barnard November 16, 2014 Updated: November 16, 2014 12:23 PM ======================= Related Arabtec shares fall after Hasan Ismaik stake sale to Aabar Former Arabtec chief Hasan Ismaik sells stake worth close to $1bn to Aabar Former Arabtec CEO Hasan Ismaik reduces shareholding at Dubai builder DFM rebound ends as Aabar fails to win over investors with disclosure on Arabtec Video: Khadem Al Qubaisi fields questions about Arabtec’s future Topics: Arabtec Arabtec third quarter profit fell by almost a third on costs associated with a company-wide restructuring that followed the departure of former chief executive Hasan Ismaik. Net profit fell 32.6 per cent to Dh68 million in the three months to the end of September 2014, from Dh100.7 million a year earlier. Mr Ismaik, the architect of Arabtec’s ambitious expansion strategy the company had been following during the earlier part of the year, left Arabtec in a shock move on 17 June. That triggered a crisis in the company’s share price in July and August as the company cut highly paid and recently recruited mergers and acquisitions staff as well as its chief operating officer, chief information officer and chief risk officer. General and administrative expenses at the company increased 89 per cent during the period to Dh241.5 million, up from Dh127.5m the previous year while provision for employees’ end of service indemnity payments increased 17.8 per cent to Dh215.1m. Still, revenues during the quarter rose 24 per cent to Dh2.4 billion from Dh1.93 billion the previous year and gross margins increased to 12.8 per cent from 12 per cent. Shares in Arabtec fell 1.64 per cent in early trading on the news. In a statement Arabtec said that its board of directors “emphasised the importance” of the company’s change in direction. For the first nine months of the year, Arabtec said that net profits increased 20.7 per cent to Dh309 million driven by business growth inside and outside the UAE. Revenues for the nine months increased 37.1 per cent to Dh6.96 billion. lbarnard@thenational.ae Add your comment View all comments