Real Estate News

Dubai Investments Real Estate Company (DIRC), the real estate arm of Dubai Investments, is giving a 100% refund to its investors on the Mirdiff Hills project, which it has put on hold due to unavailability of mortgage financing, Emirates Business has reported. Khaled Kalban, Managing Director and CEO of Dubai Investments has said DIRC would continue with the project should the lending scenario improve in Dubai.

Abu Dhabi-based Al Maabar, the real estate development investment company, has awarded KEO International Consultants a six month Program Management contract to work on Aqaba's $10bn Marsa Zayed development in Jordan. Groundbreaking for the project is scheduled in early 2010 and will cover over 6 million sq.m of built-up area, making it the largest tourism project in Jordan's history.

Al Mazaya Holding Company has said that it will start delivering units of its Dhs1bn project 'The Villa', located in Dubailand, to its owners in three stages; stage one plots (104 villas) will be delivered in July, stage two plots (150 villas) in October this year, while stage three plots (446 villas) will be handed over in March 2010.

Emaar Properties, which had announced a plan to combine with part of Dubai Holding last week, may have to raise funds if it proceeds with the transaction, according to Nomura Holdings. 'Emaar may have to raise equity, and possibly a lot, to support its private development counterparts because of their combined debt,' Chet Riley, a Dubai-based analyst at Nomura, wrote in a note to clients.

Moody's Investor Services has announced that it has downgraded Dubai Holdings Commercial Operations Group (DHCOG) to A3 from A2, and has placed Emaar's Baa1 rating on review for downgrade. The group says that these actions reflect: 'continued fundamental challenges to both companies' business and financial profiles in the wake of difficult conditions on Dubai's property market, despite a recent agreement to merge both entities.'

Abyaar Real Estate Development Co. is planning to acquire Sanam Real Estate Co., a real estate company listed on the Kuwait Stock Exchange, Emirates Business has reported, citing a source familiar with the deal. 'We are certainly looking for acquisitions and our priority will be in Kuwait,' an Abyaar spokesman said, but declined to confirm the report.

Dubai Properties has said it has forged an alliance with Standard Chartered Bank to offer 'Easy Loan' mortgages, a funding option to prospective buyers and existing owners of residential units at the Executive Towers in Dubai's Business Bay development. The bank will directly evaluate the customer's property through independent surveyors and offer the finance with minimal documentation requirement from the client. In order to benefit from the Easy Loan mortgage product, customers must be resident in the UAE and should meet the minimum eligibility criteria of the bank.

Kuwait-based Al Mazaya Holding has decided not to proceed with a plan to purchase the shares it doesn't already own in First Dubai Real Estate Development Co. The company has said in a statement to the Kuwaiti bourse it would have gained 'only marginal benefit' from purchasing a 33% stake in First Dubai.

The stock price of Emaar Properties has plunged due to concerns that a potential merger could result in asset writedowns and increased liabilities for the company. The shares lost 4.2% to Dhs2.77 at 11:50am in Dubai, bringing the slump for the month to 20%, according to Bloomberg. The shares are heading for their lowest close since May 21.

Shares of Dubai Ports (DP) World gained 0.55% at Nasdaq Dubai, closing at $0.363. Dubai Gold Securities closed 0.78% higher, while Damas and Depa remained flat. Some 3.5m securities changed hands at the Middle East's only international exchange today.

The Bahrain All Share Index closed 0.09% higher at 1,590.57 points in a very lacklustre trading day. While only Salam Bank gained 6.19%, closing at BD0.120, bank NBB and Ahli United Bank remained flat at BD0.57 and BD0.52, respectively. Around 2.4m shares changed hands in Manama.

Doha's Qatar Exchange closed 1.04% higher at 6,474.16 points ahead of the weekend. Trading remained extremely flat with just 7m shares changing hands. Shares of Al Ahli Bank gained 10%, closing at QR47.30. Most banks and insurers posted gains, while a handful industry shares lost value.

Abu Dhabi’s ADX General Index advanced constantly throughout today’s trading session, closing 1.62% higher at 2,671.29 points. Constructions shares (up 3.34%) lifted the market, along with the energy segment. Dana Gas added 2.68% (closing at Dhs1.15). Abu Dhabi National Energy Company (Taqa) remained unchanged. Its CEO Peter Barker-Homek said that the global energy firm told rating agency Standard and Poor’s not to value Taqa any longer. Taqa disagrees with new rating criteria of government-related enterprises. Taqa's major shareholder is the emirate of Abu Dhabi.

After losing over 14% during the last six days, shares of market bellwether Emaar Properties closed 1.45% higher at Dhs2.80 at Dubai Financial Market (DFM). The DFM General Index consolidated further, closing 0.61% at 1,821.19 points. Bargain hunters also added stocks of real estate contractor Arabtec (up 2.58%, at Dhs2.78) and Islamic developer Deyaar (gaining 1.30%, at Dhs0.78). Among only three declining shares, Emirates NBD ended 2.78% lower at Dhs3.50.

The UAE State Audit Institution (SAI) has unveiled its new 'ReportFraud' service for members of the public to report on fraudulent activity within the UAE Federal Government. The new service, available through SAI's web site www.saiuae.gov.ae, is also open to federal government employees and suppliers. SAI has said it has provided complete guidelines for reporting fraud in English and Arabic on its website. Individuals may report fraud by email or in writing, it said. SAI has pledged to keep all information it receives as confidential.

UAE's Department of Economic Development (DED) has launched two new eServices on its website, www.dubaided.gov.ae, to reserve and renew trade names. DED's eServices, which are available in Arabic/English, include Transaction Status whereby customers can check the status of the transaction, Search Trade Names which enables users to reserve trade names or find out if the desired name is already taken, Company Lookup which helps to search for existing companies operating in Dubai, Number of Licenses per Person Report which lists the number of licenses registered under one person's name.

Shares of SABB Takaful, which is part of HSBC Group, closed 3.53% higher at SR110. The Islamic insurance operator jumped 45% during the last seven trading days. The Saudi stock market Tadawul advanced slightly, closing 0.05% at 5,599.39 points. The retail sector index posted the largest retreat (off 1.42%) amid fears that the GCC will be hit by deflation over the next 12 months, as Standard Chartered Bank Dubai estimates.

The Nasdaq Dubai witnessed a relatively busy trading day, with DP World remaining flat at $0.36 and Depa Ltd. closing 3.33% higher at $0.62. Jewellery trader Damas lost 3.57%, closing at $0.27. Dubai Gold Securities (DGS) ended 1.15% lower at $93.12. Since March this year, rhe spoot price for an ounce of gold has been trading in a range between around $980 and $860.