More details emerge about Sharq Crossing project

PHOTOS: More details emerge about Sharq Crossing project By: Peter Kovessy | April 10, 2014View as "Clean Read" | 9 Comments While public works authorities are reportedly postponing and scaling back several development projects, it appears plans are progressing for a new multibillion-dollar waterway crossing running above and below Doha Bay. On Wednesday, Ashghal held an “industry engagement day” to brief engineering and construction firms interested in working on the 12km Sharq Crossing project, which will connect the new Hamad International Airport, Katara Cultural Village and the West Bay financial district. Dubbed “one of the most ambitious engineering projects ever undertaken in the Middle East” when it was officially unveiled in December, the Sharq Crossing will consist of three bridges linked by 8km of subsea tunnels. Construction is slated to start in 2015 and wrap up by 2021. Ashghal has declined to discuss the budget of the project, but a report published earlier this year by MEED puts the price tag at around $12 billion. According to the Dubai-based business intelligence group, the first tenders on the project will be awarded sometime this year: “MEED understands that there will be between four and seven packages covering the three bridges, which vary between 600m and 1.3km, and the tunnel sections.” The report added: “A final design for the crossing has been long time coming, with earlier designs dismissed by the former emir Sheikh Hamad bin Khalifa Al Thani, who wanted something special. The latest iteration, which was announced by Ashghal in December 2013, is certainly that – with three iconic bridges linked by subsea tunnels creating the appearance of a flying fish as the bridges leap out of the water.” The MEED report notes that contracting companies are becoming increasingly concerned about the rising input costs stemming from the country’s aggressive infrastructure build-out and limited capacity to import construction materials. According to Reuters, this was one factor – along with competition for manpower and bureaucratic delays – that have led authorities to reschedule 15 percent of the country’s development projects that are not essential for hosting the 2022 World Cup. The Sharq Crossing is forecast to be capable of handling 6,000 vehicles an hour, taking some of the pressure off existing roads. Thoughts?

Dubai Investments to lift foreign ownership cap to 35 percent

Sun, Mar 23 04:17 AM EDT DUBAI, March 23 (Reuters) - Dubai Investments, a diversified manufacturer and investor in property, plans to increase the limit on foreign ownership of its shares to 35 percent of its total capital, the company said on Sunday. Foreign investors now hold 13.7 percent of Dubai Investments' shares out of the total 20 percent allowed, bourse data shows. The firm's shareholders, including sovereign fund Investment Corp of Dubai which has an 11.5 percent stake, will vote on the proposal at a meeting on April 15, the company said. The proposal follows similar moves by other Dubai-listed companies such as property developers Deyaar and Union Properties, and Mashreq bank. Companies in the United Arab Emirates and Qatar are reviewing their foreign ownership caps before international index compiler MSCI raises those countries to emerging market status in May, which is expected to attract fresh foreign money. (Reporting by Olzhas Auyezov; Editing by Mirna Sleiman and Andrew Torchia) 10 Jul 2013 ... UAE and Qatar was upgraded from Frontier Markets to Emerging Markets status by MSCI Inc in its 2013 Annual Market Classification Review What Does The MSCI Upgrade Mean For UAE, Qatar?The two nations have been upgraded from frontier markets to emerging markets by index compiler MSCI.ByAarti Nagraj June 12, 2013Share on emailShare on printShare on facebookShare on twitterShare on linkedinShare on google_plusone_share -------------------------------------------------------------------------------- The decision by the index compiler Morgan Stanley Capital International MSCI to upgrade Qatar and the UAE to emerging market status from frontier markets was expectedly very well received by investors and bankers. Stocks markets in the both the countries rose sharply, with the Doha bourse reaching its highest ever level since September 2008. “It has been a long journey, but we’ve finally arrived,” said Georges Elhedery, head of Global Markets MENA at HSBC. “Today’s decision firmly establishes the region on the emerging markets growth map in the minds of global institutional investors.” Sam Vecht, BlackRock’s head of the emerging markets specialist team also voiced a similar outlook. “The MSCI decision to upgrade Qatar and UAE reflects a growing realisation of how far these economies and their financial markets have developed in recent years,” he said. While the UAE has been attempting to get an upgrade up from the frontier market status since 2009, it has repeatedly been rejected by MSCI. This time around though, most experts foresaw the upgrade, which will come into effect from May next year. With standards of investor relations and corporate governance increasing, and with regional economies improving, stock markets have performed exceptionally well over the last year. Dubai’s stock market alone has risen over 45 per cent this year, making it one of the best performing market across the world. “Financial markets are based on calculated investments which look at the potential levels of return set against risks involved,” explained Max Knudsen, chief market strategist at Abu Dhabi-based ADS Securities. “The change from frontier market to emerging market status, which reduces the perceived risk of investing in the UAE, is therefore extremely significant,” he said. “There is currently $1.5 trillion benchmarked against the MSCI Emerging Markets Index and if just one per cent of this came to the UAE it would represent an inflow of $15 billion. “This would provide a natural boost to all financial sectors, and would have a knock-on effect attracting investment and growth in areas from fixed income through to equities,” stated Knudsen. Despite welcoming the move, BlackRock’s Vecht said that the decision is unlikely to have any significant near-term impact on their client portfolios. “We have been broadly positive on both of these countries for the last two years as the combination of economic restructuring post financial crisis, strong earnings growth, depressed valuations, and high dividend yields offers an attractive proposition,” he said. “The impact of the change will not be seen overnight, but as the UAE develops a global marketplace, the true advantage of being classed as an emerging market will become clear,” added Knudsen. ================ UPDATE 2-MSCI keeps Qatar, UAE as frontier markets Wed Jun 20, 2012 6:45pm EDT (Adds details, MSCI comment) By Daniel Bases and Luciana Lopez NEW YORK, June 20 (Reuters) - Equity index provider MSCI on Wednesday maintained the United Arab Emirates and Qatar as frontier markets while keeping South Korea and Taiwan in their emerging market classification, again delaying much-anticipated upgrades. All four countries remain on review for upgrades in MSCI's next annual reclassification study, the company said in a statement. The report can also be found on MSCI's website (www.msci.com). A classification promotion for all four countries' equity markets could provide a boost to their stocks by attracting larger pools of investors who track MSCI's benchmark equity indexes. MSCI also said the Greek equity index faces possible demotion to emerging markets status given it "is no longer in line with developed markets' size requirements with only two index constituents." Approximately $7 trillion in assets are benchmarked against MSCI indexes. For Qatar, MSCI said the "very low foreign ownership limit levels imposed on Qatari companies is expected to be the only remaining impediment to the reclassification of the MSCI Qatar Index to emerging markets." (Something that impedes; a hindrance or obstruction) While the UAE meets all the requirements for promotion, MSCI said there are specific market "accessibility issues" related to custody, clearing and settlement due to a delay in changing the current requirement that international investors still need to operate with a dual account structure. MSCI had previously denied both Qatar and the UAE promotions in 2009, 2010 and 2011. South Korea has also been under review for four years while Taiwan has been up for promotion for three years, MSCI said in a conference call with reporters. Limitations on market accessibility and currency convertibility remain unresolved in the case of both South Korea and Taiwan, MSCI said. Greece's equity index would be forced out of a developed market ranking if its two index constituents were to shrink further in size, MSCI said. "The Greek equity market has experienced sharp declines, which are of course associated with the situation in Greece, the economic situation. The market has shrunk quite significantly," Dimitris Melas, MSCI's executive director, told reporters. The index maker said in its statement that Greek authorities have not been receptive to repeated complaints from the international investment community over their prohibition of in-kind transfers and off-exchange transactions. Stock lending and short-selling opportunities are also not well established. MSCI may also launch a public consultation process that could lead to Greece's index moving toward "Standalone Market" status if restrictions or capital controls were implemented following a potential exit from the European Monetary Union. "In that case we'd act more rapidly," said Melas, adding: "I want to make a distinction between a potential Greek exit from the euro zone and the more regular review cycle that we have, which is a 12-month cycle." Greece is embroiled in a sovereign debt and political crisis that for the moment has come off the boil with a new coalition government that seeks to renegotiate a 130 billion euro ($165 billion) bailout package from the European Union and International Monetary Fund. Morocco also faces relegation back to frontier market status from emerging market given a significant decrease in liquidity since 2008. Argentina could potentially face a removal from its frontier market status if the government continues intervening in the markets. In April it nationalized YPF SA, the nation's largest oil company that was controlled by Spain's Repsol . (Reporting by Daniel Bases and Luciana Lopez; Editing by Gary Crosse) ==================== Qatar To Reschedule 15% Of Planned Projects -SourcesQatar announced plans for a raft of projects worth $140 billion after it won the World Cup hosting rights. ByReuters March 20, 2014 -------------------------------------------------------------------------------- Qatar is likely to reschedule about 15 per cent of its planned building projects for coming years and go over budget, amid a push to complete preparations for the 2022 World Cup soccer tournament, sources familiar with government policy said. After it won the right to host the World Cup in 2010, the tiny nation, with a population of about 2.1 million, announced plans for a raft of projects that would transform it over the following 15 years. They include a new airport, roads, port facilities, railways, stadiums and other infrastructure. The government has not released a comprehensive, detailed schedule of its construction plans, but analysts estimate they will cost between $140 billion and $200 billion through the early 2020s, paid for with the country’s vast natural gas wealth. This is expected to provide a bonanza to the foreign construction firms that will do much of the work. But so far, contract awards and work on many projects have been slower to get started than the business community expected, apparently because of bureaucratic and planning problems. If they are not handled carefully, the projects could destabilise Qatar’s small economy, creating bottlenecks and driving up costs. A government source, declining to be named under briefing rules, acknowledged that Qatar faced pressures in pushing through the projects and would have to slow some, though he stressed that construction specifically for the World Cup would take priority and be completed on time. “About 15 per cent of the projects will be rescheduled,” the government source told Reuters. “All projects associated directly with hosting the World Cup cannot be rescheduled since they have to finish by 2022. But there are others which can be moved.” The source did not give details. Qatari officials have declined to discuss changes to the construction schedule publicly. Earlier this week, the central bank governor said the government was expected to sign contracts for construction projects worth as much as $50 billion this year, but he did not elaborate. Yasser al-Mulla, project manager at Al-Rayyan Precinct for the Supreme Committee for Delivery and Legacy, which is handling construction of tournament venues, said this week that all World Cup projects were on track to be completed on time. LEADERSHIP A change in Qatar’s leadership may be partly responsible for a slower pace of construction. Last June, Sheikh Tamim bin Hamad al-Thani, 33, took over from his father as emir. He has replaced some senior economic officials and in a policy speech last November, said he was particularly keen to prevent high inflation and corruption. Those purposes could be helped by implementing projects at a more measured pace than the original plans. Another factor is the sheer difficulty of assembling enough construction workers, materials and equipment from around the world. Qatar, the world’s largest exporter of liquefied natural gas, needs an additional 400,000 workers for its next phase of development, the government source said. Qatar is likely to face increasing competition for regional construction resources in the next few years from Saudi Arabia, which is accelerating a housing construction programme, and the United Arab Emirates, where Dubai is preparing to host the 2020 World Expo. By delaying some projects, Qatar can ensure that its own banks and companies have the capacity to handle a larger share of the contracts, limiting the extent to which it needs to rely on bigger foreign firms. A third factor appears to be cost. Qatar does not seem to face any difficulty financing its projects; the government’s budget surplus was $27.3 billion, or a huge 14.2 per cent of gross domestic product, in the fiscal year to last March. Nevertheless, slowing some projects may save money, if it allows resources to be used more efficiently. “The final expenditure may never be made public and will be handled by the government,” Anthony Holmes, director of the London-based Institute for Infrastructure Studies, said at a conference in Doha on Wednesday. “But, if the performance conforms to global norms, the final cost may exceed the original budget by $80 billion or around 50 per cent of one year’s GDP,” said Holmes, who has advised companies on World Cup-related projects. Qatar’s labour costs will probably rise because of publicity about deaths of migrant construction workers building World Cup infrastructure, the International Monetary Fund said in a report this month. Britain’s Guardian newspaper reported in September that dozens of Nepali workers had died during the summer in Qatar and that labourers were not given enough food and water. Qatar denied the Guardian’s findings, but the IMF said the issue “could affect the availability and cost of hiring new workers in the future”. Qatar appears ready to pay what it takes to ensure that the World Cup stadiums and other directly related projects are completed on time, however. Mulla at the Supreme Committee for Delivery and Legacy said 10 tenders would be issued this year for the stadiums’ project managers and design consultants. “We are in the advanced stages of design work for six stadiums and this year we will see five stadiums begin the early works on foundations and construction,” he said at a conference organised by business information firm MEED. Mulla said Doha now expected to spend $4 billion more than originally planned on building stadiums and related sporting infrastructure. He did not provide reasons, give details of the additional spending or say how big the original budget was. =================================== Qatar Toughens Penalties For Hiring Runaway WorkersCompanies hiring illegal workers will be subject to a recruitment ban lasting two years and will be blacklisted as per new rules. ByMary Sophia 15 hours agoShare on emailShare on printShare on facebookShare on twitterShare on linkedinShare on google_plusone_share -------------------------------------------------------------------------------- Qatar has introduced new labour rules, which hands out tougher penalties for firms and individuals employing absconding or illegal workers. According to the Ministry of Interior, companies hiring runaway workers will be subject to a recruitment ban lasting two years and be blacklisted, a statement said. In addition to the recruitment ban, violators could also face imprisonment for up to three years or a fine of not more than QAR50,000. Violators will also face a mandatory jail term of at least 15 days and a fine ranging between QAR20,000 and QAR100,000 if the offence is repeated, the statement said. The new rules will be effective from May 1, 2014, according to officials. The ministry has also stepped up the search for those sheltering and absconding illegal workers. “The Search and Follow up department (SFD) is carrying out drives throughout the year to hold violators and those who employ them illegally,” Brigadier Nasser Mohammed Eissa Al Sayyed, director of SFD, was quoted as saying in the local media. Despite existing penalties, many firms continue to flout the law, he said. Al Sayyed added that many firms employ illegal workers to avoid recruitment and training expenses by luring them with better benefits. This in turn affects other employers who spent on recruitment and training of such employees. He said that companies are allowed to lend or hire employees if they are done on a legal basis. Failure to comply with the regulations would result in firms being banned from hiring employees for a year. Al Sayyed also noted that the complaints of absconding workers have been declining as a result of intensive inspections by the SFD. Qatar’s total expatriate workforce stood at 1.3 million by the end of 2012, according to a QNB report. The construction sector was the largest employer of foreign workers in the Gulf state. =================== Qatar Toughens Penalties For Hiring Runaway WorkersCompanies hiring illegal workers will be subject to a recruitment ban lasting two years and will be blacklisted as per new rules. ByMary Sophia 15 hours agoShare on emailShare on printShare on facebookShare on twitterShare on linkedinShare on google_plusone_share -------------------------------------------------------------------------------- Qatar has introduced new labour rules, which hands out tougher penalties for firms and individuals employing absconding or illegal workers. According to the Ministry of Interior, companies hiring runaway workers will be subject to a recruitment ban lasting two years and be blacklisted, a statement said. In addition to the recruitment ban, violators could also face imprisonment for up to three years or a fine of not more than QAR50,000. Violators will also face a mandatory jail term of at least 15 days and a fine ranging between QAR20,000 and QAR100,000 if the offence is repeated, the statement said. The new rules will be effective from May 1, 2014, according to officials. The ministry has also stepped up the search for those sheltering and absconding illegal workers. “The Search and Follow up department (SFD) is carrying out drives throughout the year to hold violators and those who employ them illegally,” Brigadier Nasser Mohammed Eissa Al Sayyed, director of SFD, was quoted as saying in the local media. Despite existing penalties, many firms continue to flout the law, he said. Al Sayyed added that many firms employ illegal workers to avoid recruitment and training expenses by luring them with better benefits. This in turn affects other employers who spent on recruitment and training of such employees. He said that companies are allowed to lend or hire employees if they are done on a legal basis. Failure to comply with the regulations would result in firms being banned from hiring employees for a year. Al Sayyed also noted that the complaints of absconding workers have been declining as a result of intensive inspections by the SFD. Qatar’s total expatriate workforce stood at 1.3 million by the end of 2012, according to a QNB report. The construction sector was the largest employer of foreign workers in the Gulf state. ================== Dubai's Deyaar approves 25 pct foreign ownership Sat, Apr 05 09:14 AM EDT DUBAI, April 5 (Reuters) - Shareholders of Dubai property developer Deyaar have approved a plan to allocate 25 percent of its share capital to foreigners, the company said on Saturday. At present, investors in Gulf Cooperation Council countries can own up to 49 percent of Deyaar's shares; they currently hold 3.7 percent, bourse data shows, while those from outside the GCC have not been allowed to own any stake. The company said the shareholders approved the allocation at a meeting on Thursday. Its share price jumped 11.8 percent as its shareholders met to vote on the recommendation made by the company's board in February. "With the UAE joining the MSCI Emerging Markets Index, it is expected that many global investors and institutions will adjust their emerging market allocations to the UAE," Deyaar CEO Saeed Al Qatami said, commenting on the meeting. "We are confident, once implemented, the investor allocation will have a positive impact on the overall trading of the company's shares." The company's decision is part of a trend by companies in the United Arab Emirates and Qatar to review their foreign ownership caps before international index compiler MSCI raises those countries to emerging market status in May, which is expected to attract fresh foreign money. (Reporting by Praveen Menon; Writing by Sami Aboudi; Editing by Raissa Kasolowsky) =============

Expo 2020: Watch out for these

Mega Developments in Dubai . By Parag Deulgaonkar Dubai developers are set to commence work on several mega projects in the coming months in order to complete and deliver them much earlier than 2020. "The Expo 2020 win for Dubai is a significant milestone, and this will definitely translate into exponential growth across a wide array of sectors, namely hospitality, tourism, trade, shipping and logistics as well as real estate,” Khalid Bin Kalban, CEO, Dubai Investments, told Emirates 24|7. He added: "This overall optimism will translate into investors eyeing long-term investments and growth in all sectors in Dubai. We expect an acceleration in some iconic real estate projects as there will be a spurt in the overall demand from local and international investors. We foresee expectations increase dramatically across the entire spectrum of real estate." But even before winning the Expo 2020 bid, Dubai had started laying the foundation for building mega projects. Last week, MEED Projects estimated the total value of contracts awarded in the UAE during 2013 will close out at approximately $30 billion, but 2014 will see number of awards increasing to $35 billion. "We expect this number to increase significantly over the next few years as the market takes full advantage of Dubai's successful bid," said Julian Herbert, Director of MEED Projects. The following mega mixed-use developments will shape the new landscape and skyline of Dubai. Mohammad Bin Rashid City Dubai announced development of multi-billion-dollar Mohammad Bin Rashid (MBR) City in November 2012. Comprising four key components, the new city will focus on family tourism, retail, arts and entrepreneurship. The first component focuses on family tourism, and will include a park equipped to receive 35 million visitors and a family centre for leisure and entertainment set up in collaboration with Universal Studios. There will be over 100 hotel facilities to meet the needs of visitors. The second component, focusing on retail, will feature the largest shopping mall in the world, “Mall of the World.” The third component will include the largest area for arts galleries in Mena. The fourth component will see the development of a unique area that will provide an integrated environment for entrepreneurship and innovation in the region. The new city will be located between Emirates Road, Al Khail Road and Sheikh Zayed Road, and will include Mohammed bin Rashid Gardens Project. It will be connected to Downtown Dubai and Business Bay through a crossing that will be named the "Cultural Crossing" which will include art galleries and create the largest area for arts in the region. Bluewaters Island The Dh6 billion Bluewaters Island is set to be one of the largest tourist hotspots in the world. It will feature a demarcated retail, residential, hospitality and entertainment zones and will house Dubai Eye, the world’s largest Ferris wheel. Emirates 24|7 reported earlier that the reclamation work has already started. The project is being built near Jumeirah Beach Residence with Meraas Holdings being the developer. Dubai Water Canal The Dh7.34 billion Dubai Water Canal will connect the Business Bay with the Arabian Gulf passing through the heart of Dubai. The waterway will stretch 3 kilometers in length and width ranging from 80 to 120 meters. All construction works of the project’s infrastructure including drilling and building bridges is set for completion in 2017. The canal will add six kilometers to Dubai’s waterfront, while the project will provide an area of over 80 thousand square meters dedicated to public places and vital facilities equipped with many outstanding facilities that meet the expectations and requirements of visitors of all segments of society. The project comprises new shopping and entertainment centres linked through a uniquely designed bridge, over 450 new restaurants along with a wide array of luxurious marinas for yachts, and four world-class hotels. At the entrance of the project from Sheikh Zayed Road, an iconic Trade Centre will be constructed comprising four levels, including one underground level and three elevated levels linking the Business Bay with the project zone in a total area of more than 50 thousand square metres. The project is expected to attract 20 to 22 million visitors per annum. MBR District One With a market value of Dh21 billion, Mohammed Bin Rashid City - District One will have 1,500 luxury villas, a 350,000 square meter water park, the largest crystal lagoon body of water in the world with seven kilometre of lagoons and man-made beaches, retail zones, leisure and sports attractions. The project, which will be delivered in four phases, will be completed in six to eight years time. Work has already commenced on the project, which is a joint venture between Medyan and Sobha Group. Dubai Adventure Studios Meraas Holding is developing a Dh10-billion destination that focuses on delivering a multi-faceted leisure and entertainment experience to residents and tourists. Located at Jebel Ali, the project will feature five distinct theme parks based on movies, animals and fun characters that shall appeal to all demographics. Dubai Adventure Studios, the first phase of the development plans for which were announced by Meraas in December 2011, will anchor the new destination and is expected to be completed by 2014. Deira project Nakheel will built the Deira project, which being be developed on four existing islands of Palm Deira project. The project, covering 1600 hectares, will be a waterfront destination, adding over 40 kilometres, including 21 kilometres of beachfront, to Dubai’s existing coastline. The cost of the project has not been disclosed. Three hectares have been dedicated to hotels and resorts and 424 hectares for mixed-use developments. A night market designed in the style of a Arabic souk will be built, having over 1,400 retail units and restaurants with a number of anchor stores. There will be an amphitheater with a capacity 30,000 people; a creek marina to accommodate large yachts and a range of additional marinas offering mooring facilities directly outside residences. The island will also have a number of waterfront plots for hotels, resorts and serviced apartments. The three remaining islands will also feature hotels, resorts and residential, commercial and retail units. The Lagoons Dubai Holding and Emaar Properties will jointly develop The Lagoons, a waterfront city within the multi-billion-dollar Mohammed Bin Rashid (MBR) City. A master development, which will be over three times the size of Downtown Dubai, will cover an area of six million square metres (over 1,482 acres). The centerpiece of the development will be the Dubai Twin Towers, a mixed-use development, which is envisaged to join the rank of the world’s most prestigious skyscrapers. The fully integrated community will have a central business district, an entrepreneurial zone, cultural amenities, residences, premium and affordable luxury hotels, educational facilities, healthcare centres, a waterfront shopping mall and a wide range of leisure choices. All these key components of this world-class development are designed as inter-connected districts, around waterfronts and green boulevards. The Lagoons stretches from the banks of the Dubai Creek, through central parcels of land linked to Al Khail Road and across Ras Al Khor. Taj Arabia, Mughal Gardens Taj Arabia, a replica of India's Taj Mahal, will be a 350-room hotel and serviced apartments. It will be part of Mughal Gardens development being developed by Link Global Group in Falcon City of Wonders in Dubailand. Taj Arabia will a 350-room hotel and serviced apartments and it will be an all-glass structure. India’s The Leela Palaces, Hotels and Resorts will be managing the hotel.