Burj Dubai may not be completed until "August or September 2009"

The Burj Dubai is facing up to a nine month delay and is unlikely to be finished until August or September next year, Emaar Chairman Mohammed Alabbar revealed on Monday.

Alabbar told reporters in Dubai that the world's tallest building may not be completed until "August or September 2009".

"With a project like this you have to get it absolutely right," he said.

The mega-project was originally scheduled to be completed by the end of this year.

The remarks are the second time Alabbar has warned construction of the Burj Dubai has fallen behind schedule.

In March the chairman said the tower would likely be delayed by four months, which Emaar said in a subsequent statement was related to the interior design of the tower.

Work on the Burj Dubai was delayed in November when around 40,000 labourers employed by Arabtec, one of the construction companies working on the project, went on strike for a week over pay and conditions.

Arabtec Executive Director Tom Berry said at the time the strikes could cause the company miss completion dates for some of its key projects in Dubai, without being more specific.

The Burj Dubai currently stands at over 630 metres and its final height is rumoured to be between 700 and 1,000 metres, although Emaar remains tight-lipped on the subject.

Local media reports last year said the final height would be 818 metres, citing architects drawings posted on the internet.

In April the tower, already the world’s tallest building and tallest free-standing structure, became the world’s tallest manmade structure, surpassed the 628.8-metre high KVLY-TV mast in North Dakota, US.

The Burj Dubai is to be the centrepiece of a city within a city, Downtown Burj Dubai. The $20 billion development as a whole will include 30,000 homes, nine hotels, 6.2 acres of parkland, 19 residential towers, the Dubai Mall, and a 30-acre manmade lake.

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Pearl Dubai breaks ground for US$4-billion Dubai Pearl Project

Pearl Dubai FZ LLC, a consortium of investors led by Al Fahim Group, today broke ground for Dubai Pearl, the world class US$4-billion mixed-use development, located in the heart of Dubai Technology and Media Free Zone (TECOM Investments).

Senior officials from Dubai Pearl and TECOM Investments were present at the ground breaking ceremony, including Mr. Abdullatif Al Mulla (Group CEO, TECOM) Mr. Ali BuRuhaima (Chief Officer Asset Development Zoning Authority, TECOM) and ( Mr. Abdul Majeed Al Fahim, Pearl Dubai).

Pearl Dubai FZ LLC recently received the mobilization and excavation permits for the works. Dubai Pearl's 1.7 million square feet of plot size will have a built up area of 17 million square feet. The anticipated concrete quantity is 1.2 cubic meters with an aluminum façade spanning 200,000 square meters.

The preliminary piling test has already begun in mid May, while the main contract is in the tendering stage, with bids expected to be submitted in July, 2008.

Dubai Pearl will combine an active business district with quality urban lifestyle, offering easy access to premium commercial and residential areas such as Dubai Media City and Dubai Internet City, as well as Jumeirah.

Dubai Pearl

Dubai Pearl is a US$4 billion world class, mixed-use development by Pearl Dubai FZ LLC. Located opposite the Palm Jumeirah in the heart of the Dubai Technology and Media Free Zone, a state-of-the-art business cluster operated by TECOM and home to global IT and media companies.

Dubai Pearl is a landmark destination offering spectacular views of the Dubai coast. The development will redefine the pulse of new Dubai providing a 24-hour living city with commercial, retail, residential and leisure facilities. Designed with people in mind to create an all year round walkable environment, the Dubai Pearl will service the Dubai Technology and Media Free Zone and its communities.

Set for completion at the end of 2010, Dubai Pearl's prime location will offer an unparalleled combination of free-hold in the convenience of a freezone with luxury, energy efficient sustainability and state-of-the-art technology.

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Cap on steel prices ruled out

The UAE government has ruled out any intervention in the markets to curb the price of reinforced steel, which is on an upward spiral.

Mohammed Abdul Aziz Al Shehi, Undersecretary of the Ministry of Economy, told Emirates Business that the ministry will not move to fix the price of a tonne of steel, which currently ranges from Dh5,400 to Dh5,700 according to the country of origin.

He added that the steel price hike is not a local or regional occurrence but a global phenomenon.

"We will not fix the prices since they change each day, and price-fixing will lead to an absence of steel from the markets, which would be very damaging to the real estate and infrastructure projects underway in all emirates," Al Shehi said

The Undersecretary said the government has already exempted steel from customs tariffs and there were no taxes imposed on the commodity either. Companies and traders are free to import steel and there exists no monopoly in the market as well. Under the circumstances, then, the major reason for the price rise in the country was a lack of local manufacturing facilities, he said. However, there are plants currently under construction, he added.

The shortage of cement will disappear in a few days, Al Shehi said, and the ministry will this week announce a list of 30 suppliers of cement nationwide who are selling at Dh18 a bag. Moreover, cement is sold for Dh16 a bag at cement factories and there is no need for contractors to buy at higher prices since availability is not a constraint at the factories, he said.

The ministry will carefully monitor new dealers all over the country and scrutinise their receipts and bills of sale.

Buyers will be sold 50 bags at a time and the ministry does not mind if consumers buy the amount they need in stages, Al Shehi said.

Large contracting companies can buy directly from the plants, he said. Ras Al Khaimah, Ittihad and Gulf CementGulf Cement factories will push their production to the maximum in order to increase supply and reduce prices. Also, huge amounts are being imported from India, Iran and Pakistan, he added.

Meanwhile, big contractors in Abu Dhabi continued to complain about the growing shortage of cement. According to some who spoke to Emirates Business, there exists a black market for the material where a bag of cement is sold for Dh22 to Dh25.

They also said the price of a tonne of reinforced steel in Abu Dhabi has hit Dh5,700, which is expected to go up to Dh6,000 in a few days time.

/Emirates Business 24/7 /

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Developers hit by bank funding cap

New entrants and medium size developers in the UAE are finding it difficult to obtain finance for their projects as banks are on the brink of reaching the 20 per cent cap on funding to real estate, say industry sources.
The UAE Central Bank says all banks operating in the domestic market may lend only 20 per cent of their domestic deposits for land purchase and development.

This law was enforced in the UAE in the early 80's, at a time when there was a global dip in the real estate market. The government obviously wanted to control an over-exposure to the real estate sector then.

"The law is probably outdated but it has not been repealed so far," TK Raman, Chief Operating Officer of Abu Dhabi-based Finance House, told Emirates Business. "Most lenders in the market are getting closer to that level and are becoming more selective as a result."

Developers have started to feel the pinch. Kwon Hong Sa, Chairman of South Korean developer Bando Corporation, said: "We have found many institutions interested in providing construction finance but it is financing for land that we have realised is rather difficult to get in the market." Bando is looking for $1billion (Dh3.67bn) of external funding for land purchases to start construction of its projects in Dubai.

"We have so far approached eight financial institutions, two local and six international, with regard to this," added Hong Sa.

"Korean banks are unfamiliar with Dubai land transactions and procedures so we think it could be quicker if we had funding from a local bank or institution. Banking systems in Korea are different from those in Dubai and generally the obstacle we face is the need to produce information on the market here in a format that is acceptable to institutions in Korea," he said. Bando has a turnover of $150m in Dubai and $500m in Korea and has self-financed its $400m maiden Dubai venture - U-Bora Towers.

Raman said: "It's not that lenders don't recognise the credibility of international developers and acknowledge their achievements abroad. It's just that when you are a relatively new player in the market you are probably not a high priority for lenders."

Hadara Development and Investment, which plans to enter the Dubai realty sector, are looking to strategically align with partners for borrowing purposes.

Chief Executive Tariq Ramadan said: "What we believe is that borrowing is hard to come by for both local and international developers. It is better for developers to be self-reliant to a certain extent."

Buniah Chief Executive Mohammed Al Safeen said: "In Dubai today there is no such thing as easy funding for real estate projects. There are quite a few practical options available - for example if a developer pays for land in full it can be mortgaged.

"Also joint or co-ventures and strategic alliances are options that developers in the market continue to use as financing tools for their projects. And pre-sales is a revenue stream that developers continue to depend on for raising capital."

However big-time developers say for them to obtain finance is not difficult but alternatives such as joint ventures are more sustainable options for securing funds.

A Damac PropertiesDamac Properties official said: "We have our own funds so we are not looking for financiers. We do sometimes opt for joint venture, not because of financial constraints but because of the nature of land acquisition in international market.

"In Malaysia and India, for example, it is difficult for even big developers with a considerable fund base to develop solo. But in Dubai we might consider a joint venture; again not because of financial constraints but because of the nature of the business or the partner."

A Nakheelspokesperson said: "Our international development strategies include joint ventures such as our investment with leading Australian developer Mirvac and with leading companies in targeted markets and development projects in which we can add value through our innovation and expertise.

"To help us deliver our projects in the coming years, we are putting into place prudent agreements with regard to the cost of construction. We've approached contractors on the basis that they're our partners, which is why we've attracted top-flight companies for this.

"We've spent a lot of time formalising locked-in agreements for building materials such as steel. If you lock in with contractors early enough, the price escalation risk can be removed, which is so important. Joint venture opportunities in Dubai will always be a consideration, but there's nothing I can disclose at this stage."

Al Safeen said: "The bigger developers are more fortunate as they are able to source funds in the market. It is the mid-size developers who are not able to leverage much due to their business structure who find it really hard. Our own benchmark is a little different. We don't typically like to arrange project finance for something which exceeds 24 months. We think that for a new developer starting a project, the financing may spill over to three to four years until he really starts selling properties."

Interest rates for land loans vary from 7.5 per cent to 10 per cent and there are additional charges.

"Specifically on financing for land in Dubai, generally nobody gives a 100 per cent loan. A minimum 30 per cent down payment is required and the balance can be financed. The idea is that the developer or investor has to represent a risk-free proposition to the lending institution. I am optimistic about the fact that as the market matures you will see more of an international situation where more international lenders enter the market," Safeen said.

Sundar Parthasarthy, Senior Vice-President of Abu Dhabi Commercial Bank, said lenders had started to check out developers more thoroughly before providing funds. "We look at the background of the developer. We look at their cash flows and whether they are sustainable and examine their management background. The developer today has to be that much more financially secure to enter the market here. A company may be big in its home country or other markets but nobody may know that in this market," he said.
By Anjana Kumar

/Emirates Business 24/7 /

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Pearl Dubai starts work on the first phase of Dubai Pearl

Pearl Dubai, a group of investors led by Al Fahim Group, has stated construction work on the first phase of its mixed-use real estate development, Dubai Pearl.

Abdul Majeed Al Fahim, Chairman of Pearl Dubai, said: "Pearl Dubai registered an overwhelming response from investors during the first two launches of its commercial and residential units in 2008. The market feedback has emphatically reiterated the high level of confidence Dubai Pearl enjoys amongst investors.

With the completion of scaffolding and site hoarding, and the obtaining of mobilisation permit from TECOM Investments, Pearl Dubai has begun mobilising contractors for the foundation works of the landmark real estate project in Dubai. The Dubai Pearl project is located in the heart of Dubai Technology and Media Free Zone (TECOM Investments), overlooking Palm Jumeirah in the emirate of Dubai. The real estate project is scheduled to complete by December 2010 and will have a built-up area of more than 15 million square feet.

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Construction contract for dubai trade centre district awarded

Dubai World Trade Centre (DWTC) today officially announced that it has awarded the development contract for the first phase of its Dubai Trade Centre District (DTCD) to Al Jaber L.E.G.T. Engineering & Contracting (ALEC) in a deal valued at AED 3.35 billion.

The contract will see ALEC take on the responsibility for the construction of Phase One of the integrated commercial destination, which will include over 240,000 square metres of Grade A office space, along with a premium range of meeting, retail and hospitality facilities.

Helal Saeed Almarri, Director General, DWTC, said: “We are designing DTCD to be a world-class urban destination at the core of Dubai’s commercial district, offering a blend of high-end office and retail space complemented by luxury lifestyle offerings. Delivering a consistent standard of excellence across every aspect of the project requires that we leverage the professionalism and expertise of the best in the industry. In awarding ALEC the contract for the first phase of development, we believe we have selected the right firm to enable the highest quality result.”

DWTC’s other partners on the DTCD project include world renowned companies including Hopkins Architects to the WSP Group for structural engineering, and the Mace Group for project management.
DTCD is one of the most significant redevelopment projects currently being undertaken in the region, transforming the entire area surrounding the Dubai International Convention and Exhibition Centre (DICEC) in the commercial heart of Dubai into a business quarter of unsurpassed quality.

Kez Taylor, Managing Director, ALEC said: “As a leading contractor, we have experience with a number of the region’s most iconic projects, and fully understand the enormous responsibility of delivering them on schedule and to the highest possible standard. DTCD is a truly remarkable project that will create a bold new business landmark at the heart of the UAE, and we are very proud to be involved in its development.”

A major factor in awarding the contract was the focus upon providing the highest standard of sustainable development within the construction plan. DWTC a pioneering company in the region to base its development strategies on sustainability principles, aiming to meet highest LEED environmental standards, in line with the directive of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai.

As well as finalising the construction contract, DWTC has also signed agreements with four major hotel operators to provide 1,150 rooms and 500 serviced apartments within the District in Phase One. Earlier this month, DWTC named Amanresorts and GHM as operators of a prestigious signature destination that will anchor the hospitality offering within DTCD, as well as finalising a management agreement with Accor Hospitality for a new Ibis Hotel in the District.

About DWTC

With a vision to make Dubai the world’s leading destination for all major exhibitions, conferences and events, DWTC has evolved into a multi-dimensional business catalyst, focusing on Venues, Events and Exhibitions Management and Real Estate.

Complementary to the primary service offerings are a range of value added services from media/advertising, engineering and technical consultation and wedding planning, event and security services and an award winning hospitality portfolio. For more information about DWTC visit us at www.dwtc.com

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Arabtec wins Damac 'Business Heights' contract

Damac Properties, the largest private master developer and luxury lifestyle provider, has appointed Arabtec/EEC JV Construction as main contractor for its “Business Heights” project, located in the heart of Amman and within the Abdali area.

Business Heights is a 20-storey commercial tower located in Jordan’s Abdali master plan development. Damac is the first real-estate developer to launch commercial towers in this area and it is also the first to introduce a residential project in the same location as The Heights, a 35 storey tower, said an official spokesman.

Business Heights is located along Naboulsi Street and at Naboulsi Gate which is one of the most favorable sites within the Abdali area.

Through this agreement, Damac Properties is further reiterating its commitment to introducing new and innovative projects to Amman. These projects will serve to satisfy client needs.

The company is also committed to hiring the best contracting companies and it reiterates this commitment by offering tailor-made services that are relevant to the country’s booming market.

“We are pleased to announce the signing of this agreement with Arabtec/EEC JV
Construction as our official contractor for our ‘Business Heights' project. This agreement will add a lot of value to our project portfolio. Both Arabtec and EEC JV have a very strong record for delivering top quality projects that adhere to international standards of excellence in terms of both operational professionalism and time efficiency,” said CEO, Damac Properties, Peter Riddoch.

“We are proud to be recognised as the main contractors for Damac’s Business Heights project. This designation comes at a perfect time for us, a time when we can see ourselves contributing positively and fruitfully to the development of Jordan’s national economy,” said CEO of Arabtec Riad Kamal.

Damac Holding has now grown into a global conglomerate with more than 7000 employees in 18 countries. Being one of the first private sector company to make a commitment to Dubai’s real estate market, Damac Properties has become the market leader with a strong sales record to its credit.
/TradeArabia News Service/

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Damac Properties awards enabling works contract to NSCC for its Lakeside project in IMPZ

Damac Properties, the largest private master developer and luxury lifestyle provider, has awarded Dhs22.9m contract to NSCC Foundation Engineering for its Lakeside project, an iconic residential development at the International Media Production Zone (IMPZ) in Dubai.

The Lakeside project comes close on the heels of the success achieved with its previous two projects the Crescent and Lago Vista in IMPZ. The enabling works that includes shoring, excavation, dewatering and piling, commenced last month.

Sharing details about the Lakeside development, Hussain Sajwani, Chairman, Damac Group, said: “We are pleased to announce the progress of enabling works at our Lakeside project. This will add a lot of value to our project portfolio. A beautiful residential project, Lakeside at the IMPZ is a strategic development offering everything that one seeks – from state-of-the-art facilities to eco-friendly environment and above all the luxury at an affordable price.”

Founded in 1968, NSCC is known for quality, workmanship, on-time delivery and superior value, which fuelled the company’s desire to both expand and diversify. NSCC has evolved to become a turnkey engineering contractor with an in-house design capability. NSCC is not simply a drilling contractor, but rather a foundation engineer with the capability to drill piled foundations and take on turnkey foundation engineering projects.

A complex of two 21-storey and two 22-storey towers, Lakeside will have studio and one-bedroom apartments with state-of-the-art accessories, thoughtfully planned space and utilities and elegantly designed interiors.

Situated on the Emirates Road, the IMPZ is in close proximity to the Jebel Ali Port and the Jebel Ali Airport City, a unique free zone incorporating a vast array of residential, industrial, commercial and community service projects.

In his comments on the project, Peter Riddoch, CEO at Damac Properties, said: “The commencement of this work ensures that we complete this project within the scheduled time frame. DAMAC projects are designed with passion and vision aimed at becoming the Middle East’s most prominent luxury focused private sector master developer. Set amidst beautiful lawns, fountains and gardens, Lakeside extends a pioneering, premier residential complex within the heart of IMPZ, a unique free zone in Dubai. Overall, the project extends a distinctive lifestyle expression that offers unparalleled opportunities.”

The project will also offer the perfect choice of amenities such as health clubs for men and women, steam and sauna facilities, gymnasium, aerobic centre, swimming pools, children’s play area, barbecue area, function room, tennis court and access to golf courses. Lakeside is designed by industry renowned consultants – AR Konsult.

The project’s prestigious location – IMPZ – extends a sophisticated lifestyle with unique facilities including in-campus transportation, medical centre, schools, hotels, shopping centres, restaurants, amphitheatre, sports grounds and full-fledged fitness clubs.

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Dubai registers 163 per cent growth in construction waste last year

Construction and demolition waste generated in Dubai registered a record 163 per cent growth last year as compared to the previous year, according to the annual report of Dubai Municipality's Waste Management Department.

In 2007, a total of 27.7 million tones of construction waste was removed from various construction sites of the city whereas it totaled only 10.5 million tons in 2006. Construction and demolition waste makes up 75 per cent of the total solid waste generated in Dubai every year.

Dubai Municipality recycles, by means of a public-private joint venture initiated last year with Al Rostamani Group, some eight million tones of construction waste at the Emirates Recycling Plant located in the Al Lusaily area on the Al Ain-Jebel Ali road. The remaining goes to landfill.

In the meantime, the volume of domestic solid waste generated in Dubai rose by 13.7 per cent in 2007 as compared to 2006 with a total of 3.34 million tons. According to the report, the agricultural waste generated in Dubai during last year was 142,816 tones registering a 14 per cent growth over the previous year whereas the total volume of liquid waste (mainly consisting drainage water carried from areas that are connected to the sewage network) was 76,456 tones.

The report pointed out that Dubai Municipality's endeavours to recycle various types of waste are yielding good results as the gap between treated and non-treated waste is narrowing every year even when the total volume of waste, generated in the city, is going up astronomically.

The Municipality treated last year over 31 million tones of general solid waste, 83 million gallons of liquid waste, and 347 tons of hazardous waste. Apart from the recycling plant for construction and demolition waste, the civic body has entered into several other joint ventures with groups like Tadweer, Zenath Group and Al Serkal Group to recycle domestic waste, medical waste and waste edible oil. These joint ventures are currently run on a BOOT (build, own, operate and transfer) basis.

Tadweer, which was opened in March 2006, treats a total of 4000 tons of solid waste daily. A AED 500 million facility, Tadweer is one of the biggest investment projects in the region and is a unique one for Dubai.

Zenath Group, the recycling and waste management arm of ETA Star Group, is currently building UAE's largest and first vertical medical incinerator plant for safe treatment of medical waste. The incinerator, which will be located in Jebel Ali close to the existing incinerator of the municipality, will have a treatment capacity of 20 tons per day and will be fully operational by the end of this year. This project assumes much significance as Dubai Municipality handled 1188 tons of medical waste in 2006 compared to 579 tons in 2002. By 2017, this quantity is estimated to reach 4030 tons, especially with the full-scale functioning of facilities like the Dubai Health Care City which will have 9 hospitals with about 1,100 beds, in addition to some 300 health care operators by end-2008. At present, all medical wastes generated in Dubai are treated and disposed of at the Jebel Ali Medical Waste Treatment Facility. Since 2001, the facility has been using a medical waste incinerator with a throughput capacity of 500 kg/hr.

Al Serkal Group's AED 10 million waste treatment facility in Al Awir is dedicated to recycling waste edible oil from hotels, restaurants and food processing factories. The plant now has an optimum capacity to treat and process 50 cubic meters of grease and other wastes. In its second phase, capacity will be expanded to 100 cubic meters.
/WAM/

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New cement price cap at US $92.5 per tonne

A tonne of cement in the UAE has been fixed at a cost of US $92.5 (AED340) by the Ministry of Economy.
This follows a recent reports, which predicted the ministry would change the capped price on cement from the redundant $80 per tonne to a more workable price.

Last week, the Cement Producers Group (CPG) and the Ministry of Economy signed a Memorandum of Understanding (MoU) that would increase daily production of 50kg cement sacks from 150,000 to 250,000. The MoU will also reduce the price from $4.62 to $4.34 per sack.

The agreement also allows consumers and contractors to buy cement sacks from the producer directly without any restrictions.

HE Sultan bin Saeed Al Mansouri, UAE minister of economy, said the MoU aims to reduce inflation, control rising prices and combat attempts by monopolies to cash in on the UAE construction boom.

"Inflation is an international problem, especially for countries witnessing high growing rates, however, our country, through the Ministry of Economy, shall prevent exploitative activities which threaten market stability.

In March, HH Sheikh Mohammed bin Rashid Al Maktoum, UAE vice president and prime minister and ruler of Dubai, exempted cement and steel imports from custom fees in order to combat a supply shortage and rising prices.

Ahmed Saif Belhasa, chairman of the UAE Contractors Association, said: "The signing of the agreement is very timely since besides controlling the price of cement, it also positively influences different market trends so that no loss will be incurred by cement plants or contractors.

But some ready mix companies feel that the cap won't make much of a difference. "There is a shortage in the market, even after production has been increased and everyone is running at full capacity," said Chris Lobel, general manager, Conmix.

The cap will do nothing; it will only raise the benchmark and it will just mean that cement is being bought at a higher price. It also means that the black market price will go up.

"There may be a short relief, but it will only be short-lived."

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US movie studios head for the Middle East

Wonder woman, King Kong and Shrek are heading for the Gulf as part of the rush to build what could become the world’s largest theme park playground. But even as the ink dries on the billion-dollar deals in the UAE, movie studios are grappling with ways to make their signature characters and amusement parks fly in the conservative region.

Politically sensitive characters such as Captain America could be left at home. Prayer rooms will join the list of accommodations, and menus will likely feature falafel and humus alongside pizza and hot dogs. There is even a move afoot to offer Bollywood dance shows to lure Indian visitors.

Investors, studios and park operators are all aiming to cash in on what some observers call the Middle East’s decades-long fascination with American culture. Hollywood movies are popular in the region, and Western fashions are hot commodities among residents who travel abroad.

“On the one hand, they hate America. On the other hand they love America to the bone,” said Michael Izady, an expert on Middle East culture who reaches history at Pace University in New York. The theme park market is open – with no major facilities currently operating in the Middle East.

The projects are no-brainers for the entertainment companies that have jumped at what amounts to free brand expansions with no capital at risk. Few details have been provided about the deals, which entertainment companies simply describe as licensing arrangements for intellectual property and help on designing the parks and attractions, with no mention of possible royalty payments.

Their investment partners have money and land to build the parks but lack the star-powered attractions to draw the millions of visitors needed to make them profitable.

Dubai has thrived and turned into a magnet for the wealthy as oil money flowed in. the government wants to more than double the number of annual visitors from nearly 7 million last year to 15 million by 2015.

In recent months, eight major licensing deals have been struck between oil-rich investors and entertainment giants such as Viacom Inc’s Paramount Pictures and Marvel Entertainment Inc for theme parks and other attractions.

The first, a $2.2 billion Universal Studios park based on franchises such as King Kong and Jurassic Park, is set to open in an area dubbed Dubailand on the city’s darts outskirts in 2010. Designs fro the parks are moving quickly, despite lingering doubts about the long-term availability of financing and the lack of highways and other infrastructure to support the huge developments.

Several projects are planned for a man made island being reclaimed from the sea called The Palm Jebel Ali.

Kevin Tsujihara, President of Warner Bros home entertainment group, is convinced that Superman, Batman and other DC Comics character licensed by Warner will be readily accepted by those who visit the park from the Middle East, Europe, Africa and Asia.

With plans to help build a $1 billion theme park, Marvel Entertainment Inc is downplaying Captain America, a World War II creation draped in the American flag, in favor of attractions based on popular characters such as Spider-Man, Fantastic Four and X-Men – none of whom carry the same political baggage.
“One of the things that’s nice about our characters is they are either about individuals helping people or they are about teams of people of different types. Like mutants, that bank together and solve problems,” Marvel Chairman David Maisel says.

“If anything, that is a good message for today’s world with all the different cultures,” Park designers also plan to tweak the models used for North American theme parks.

The Walt Disney Co, the world’s largest them park operator by far, is notably absent from the rush to the region. Disney Parks and Resorts Chairman Jay Rasulo said Disney is studying the market.

Some observers said the cultural barriers might be easier to overcome than financial and infrastructure hurdles. Massive construction on a variety of projects is causing traffic jams as road construction has failed to keep pace with the building.
“The development in the UAE is outrunning the ability of the infrastructure to keep up,” said Keith James, President of Jack Rouse Associates, which is helping develop a Ferrari automobile theme park in Abu Dhabi to open next year.
“I am not going to say they are not going to happen, I just do not know that they are going to happen on the tight time frame that everybody is talking about. There is simply not enough labor and design effort to pull it off.”

The scale of the theme park plans, estimated to cost a total of at least $20 billion, puts them on par with developments in Orlando, Florida, home to dozen parks including Walt Disney World, SeaWorld and Universal Studios.
“Up until very recently, the Middle East has been Theme Park deprived,” said Paul Ruben, North American Editor of Park World magazine. “They have suddenly joined the 21st century.”

The parks will also provide Dubai, and to a lesser extent Abu Dhabi, with an economic buffer against diminishing oil reserves. Funded by sky-high oil prices, government-backed companies in both areas have gone on worldwide investing sprees, taking stakes in everything from casinos and cruise ship to electronics markers, banks and ports.

THE RISKS
Studios an their UAE financiers are taking a risk with the them parks, said Ibrahim Warde, Adjunct Professor of International Business at the Fletcher School at Tufts University.
“There are two separate issues. One is whether, financially, all those projects will come to completion. The other question is if they do, will the customers show up?”

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'The Universal Museums' Project

HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, today announced the launch of "The Universal Museums" project, which will bring together leading collections by globally-recognized museums for the first time ever, confirming his vision of Dubai as a vibrant global city that draws the world's greatest artistic and cultural assets.

"The Universal Museums" project will be located in the recently-launched Khor Dubai area, a 27 kilometre long project stretching from Shindagha to Business Bay, alongside the area's museums, performances spaces, artist ateliers, and galleries. The combined attractions of these matchless institutions will draw local, regional and international "cultural tourists", in addition to the thousands of visitors who already flock to the emirate each year.

HH Sheikh Majid bin Mohammed al Maktoum, Chairman of the Dubai Culture and Arts Authority, expressed the aim of the initiative: The Universal Museums project epitomizes the essence of Highness Sheikh Mohammed Bin Rashid Al Maktoum's Vision 2015, demonstrating Dubai's potential as a site of large-scale cultural collaborations that give rise to new and innovative cultural forms in the same way that the Emirate has spurred innovations in so many other, diverse sectors.

The initiative will offer opportunities for education and for showcasing our own culture, leveraging our partners' stellar collections, and creating unprecedented multilateral exhibitions that span culture, geography and time to provide a window into what culture has been, is today, and will be in the future. The cluster of major international museums identified as 'universal museums' aim to consolidate the world's treasures into accessible and comprehensive collections that illustrate the world?s collective cultural wealth in the spirit of a world community. 'The Universal Museums' project in Dubai will provide the first physical site for collaborations between these matchless institutions.

Dr. Omar Bin Sulaiman, Managing Director of the Dubai Culture and Arts Authority, said: "Given the over 200 different nationalities resident in Dubai, the objective of The Universal Museums project will be to create innovative new exhibitions leveraging not only the multiple outstanding collections, but also the curatorial, managerial and educational strengths of these global museum leaders for the people of every culture living in or visiting Dubai."

The project's location in the Khor Dubai area is superb, since the Creek has been a site of international interactions for hundreds of years and has always been a popular cultural destination in its own right. Indeed, it is the cradle of Dubai's vibrant culture. The Dubai Culture and Arts Authority will work with leading global architects, Universal Museum partners and local developers to design and build the Dubai project. Global partners, including leading museums, will also be invited to participate from among the world's most prominent institutions. WAM

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Nakheel to take legal action over project delays

Dubai master developer Nakheel will take legal action against any sub developer that fails to deliver projects on time, the company's CEO said.

Speaking at the Arabian Travel Market (ATM) in Dubai, Chris O’Donnell said Nakheel has introduced a clause into all its sales contracts to stamp out late delivery of projects.

“Nakheel sales contracts will now include definite timeframes on the development of the land we sell, if projects aren’t commenced within that certain time frame, we take action against that developer. That’s something we have been focused on that for the last 18 months,” he said in an interview.

O’Donnell's remarks follow news that Dubai's real estate watchdog is investigating four developers for what appears to be the non-delivery of projects.

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Steel prices hit AED 4,500 per tonne

Steel prices in the UAE increased by 12.5 per cent since March to record-high Dh4,500 per tonne.

And an increase in regional steel production will have no impact on the soaring steel prices in the country, as the construction boom and cost of raw materials will only result in further rise, said traders.

Meanwhile, a report published by Meed forecasts dramatic growth in the steel industry in the region. Despite only accounting for two per cent of the global steel trade, the Middle East steel industry is undergoing rapid expansion to meet the needs of the fast expanding construction sector, said Middle East Steel 2008 report.

Middle East produced 21.1 million tonnes of raw steel in 2006 and consumed 41.6 million tonnes of finished goods. The production is expected to rise to 35 million tonnes and consumption to 60 million tonnes of finished by 2010.

Rizwan Sajan, chairman of Danube Building Materials, told Emirates Business the increased supply will not be enough to bring down the soaring price.

"Firstly the price of scrap is going up. Raw materials, such as billets, have become more expensive and in the UAE there is a massive demand for steel. It would be wrong to assume that the price rise is due to non-availability or shortage of steel," said Sajan, who deals with construction materials, such as steel, glass and timber.

Shyam Bhatia, Chairman of Alam Steel, said: "Gone are the days when raw materials used to determine the cost of the finished product.

"Today, because steel is high in demand, suppliers of scrap, especially from Turkey, CIS and Europe, are increasing the prices." /Emirates Business 24/7 2008/

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“We cannot let people promise and not deliver in Dubai”

Four property companies are being investigated by Dubai’s real estate watchdog over what appears to be the non-delivery of projects, the regulator revealed on Sunday.

Speaking at a Dubai Property Group meeting, Real Estate Regulatory Agency (Rera) CEO Marwan bin Ghalita said four firms were currently being subjected to an "internal audit of transactions”, UAE daily Emirates Business 24/7 reported on Monday.

“We cannot let people promise and not deliver in Dubai”, the newspaper quoted bin Ghalita as saying.

Bin Ghalita declined to name the developers under investigation or give further details.

The authority was seeking a transparent relationship between parties and rules and regulations would be “strictly implemented”, bin Ghalita said.

Rera was also addressing a range of other issues, including developers making misleading claims or charging percentage transfer fees when they were only entitled to claim administration fees, the newspaper said.

The announcement is the latest blow to the emirate’s real estate market, which is reeling from recent controversies surrounding high-profile developers Deyaar and Damac Properties.

Deyaar is being investigated for alleged financial irregularities, with four people detained so far by Dubai Public Prosecution, including former Deyaar CEO Zack Shanin.

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Dubai Properties to move ahead on Rashid Gardens despite cost pressures

Mr Hashim Al Dabal executive chairman of Dubai Properties said that the development of its AED 200 billion mega eco project Mohammed bin Rashid Gardens will not be impacted by soaring construction costs.

Mr Al Dabal said that "There are always big challenges when building in Dubai, sometimes its supply and demand or prices going up or location issues. But there is always a solution, we worry about the market as a whole, not it terms of just one cost area."

Mr Al Dabal said that Dubai Properties would finance the initial work on the project and seek outside investment later on in its development. He added that "Here we will use a two stage strategy where the infrastructure will be funded by the company and later on we will engage other developers and market investors for another source of funding."

The four clusters, themed around wisdom, nature, humanity and commerce, will each have an iconic building at their centers. The House of Wisdom will include a library, international universities, history and science colleges and the Sheikh Mohammed Mosque. The House of Humanity will include the Mohammed bin Rashid Al Maktoum humanitarian & charity establishment, the museum of light, the human civilization museum and other charities such as UNICEF. The House of Commerce will include banks, financial services firms and insurance companies, as well as higher educational institutions that specialize in banking and finance. Dubai Properties will oversee the project, which will be carried out in 6 stages.

It may be noted that labor and raw material costs have soared in the UAE over the last year due to record high oil prices and the falling value of the US dollar, to which the dirham is pegged, putting further pressure on developers already struggling to finish projects on time and on budget.

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Parallel Roads project finalised

To be constructed at a cost of AED 1.855.836.000 (around USD 50 millions), Phase IV is the biggest part of the 9-contact Parallel Roads Project. Four contracts have been awarded and 3 are still under construction.

This passageway covers108 km stretching from Sheikh Rashid Road (to the north) and terminating at the outskirts of the emirate of Abu Dhabi.

The project consists of bridges and intersections between parallel and perpendicular roads in a sector extending 42 km. It also includes two corridors to support Sheikh Zayed Road, which is witnessing intensive traffic triggered by a series of massive development projects spanning along this vital road. Following these works, the intake of both roads is expected to rise to 18000 vehicles per hour.

"In coordination with Jebel Ali Free Zone Authority (JAFZA), RTA managed to separate Inter-Free Zones traffic at both sides of the Project from the bypassing road, said Al-Tayer.

"Upon completion of bridges linking Free Zones and areas covered by the Contract, the Project will help in cutting short trip time for trucks, minimizing truck density on nearby roads and providing better flow of traffic on these roads," he added.

Work, he said, is progressing according to schedule in other phases of Project. Construction works in the first Contract of the Project are set to be completed in February 2009, covering road construction in Al Barsha and Al-Quoz Industrial Area. This Phase, which costs around Dh600 million, extends from Jebel Racecourse up to Muscat Road, with a total length of 13 km spanning both Western Parallel Road and Eastern Parallel Road.

Eastern & Western Parallel Roads, consisting of three lanes in each direction, pass across Al Barsha residential area and Al Quoz Industrial Area. The Project also comprises two flyovers and 17 light signal-controlled intersections, and works necessary for all services such as irrigation, sewage, lighting, and traffic & directional signage.

Phase II of Parallel Roads Project, costing about Dh693 million & cantered on Za'abeel area, comprises construction of elevated roads including 19 bridges made of pre cast concrete segments. It extends 4236 meters in length and 14.7 meters in width, and links with the terminal point of the Western Parallel Road, prior to Za'abeel Road 2. It extends in an elevated road alongside the boundary of Za'abeel Park to link with Sheikh Rashid Road near Al Qatta'iyat Road, thereby providing a direct link between Al Garhoud Bridge and the Western Parallel Road.

The Project, in which construction works started on 12 November 2007, comprises various works such as paving, lighting, traffic signals, traffic signs ... etc. The remaining phases of the project are now under initial design and tendering processes. The cost of the two contracts of Phase III (A & B) of these roads parallel to Sheikh Zayed Road reached Dh1.399.173.000 and will be completed in two years. The Contract under Phase III (A) costing Dh449.233.000 had been awarded to Todini Co. and will be completed in 600 days.

Al Tayer further added: "The Project is located in Jumeirah Lake Towers area and links vast expanses of property complexes of Emaar and Nakheel towards the southern part of Sheikh Zayed Road between Interchanges 5 and 5.5. It comprises constructing a 10 km road of 6 lanes, 5 bridges and 2 underpasses in addition to construction-related activities such as facilities, pavements, signage, road markings, lighting, traffic diversions and protecting the existing utility lines. This Phase comprises 6% of the total Parallel Roads Project.

"Phase III of the Project, costing about 950 million dirham, was awarded to Al Naboodah Contracting Co. and will be constructed in 730 days. The road project passes across huge property developments in the vicinity of Jebel Ali Racecourse such as Emirates Hills, The Springs, Jumeirah Islands, Jumeirah Park and Metro Planned areas.

"This Phase includes construction of a 20 km long road, comprising 14% of the Parallel Roads Project. It consists of 3 lanes in each direction and involves construction of 10 bridges, and 4 underpasses in addition to facilities, pavements, signage, road markings, lighting, traffic diversions and protecting the existing utility lines. WAM

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Fixed prices for cement allover UAE

All cement manufacturers in the UAE have abided by the fixed price of AED 17 per bag of 50kg of cement, stressed Undersecretary of the Ministry of Economy (MoE) Mohammed Ahmed Abdul Aziz Al Shehhi.

Prompt action, he warned, will however be taken against all manufacturers who don't comply with the Ministry's regulatory decision which aims at stabilizing the cement market as well as regulate the cost of construction in the country.

The Ministry, he added, will be taking a number of initiatives and measures to boost cement supply on the local market through urging companies to directly import cement as well as fighting exploitation and monopoly by suppliers.

MoE, he added, will however help cement manufacturers to overcome any difficulties they may face. /WAM /

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French group Alstom wins Dubai tram order

French power plant and high speed train maker Alstom said on Tuesday that a consortium it is part of had won a contract to build a new tramway in Dubai.

The first phase of the Al Safooh tramway project represents a contract worth over 500 million euros ($783.1 million), of which around 280 million euros is for Alstom, the French group said.

Alstom won the contract as part of the ABS consortium, which also includes the companies Besix and Serco. /Reuters/

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Proper planning for related infrastructure is important when launching new projects

There are many so-called ‘community developments’ in the UAE these days, and more and more keep coming. But one can often wonder whether the main developers of these projects have really put in the required thought and planning necessary to ensure ultimate success of these.
Of course, they will argue strongly that they have – international master-planners have been used, top-level architects consulted, comprehensive infrastructure considered and lots of time and money invested in making a ‘quality environment’ that meets the needs of the community.

The reality though is that very few of the community developments delivered so far have, in fact, met the full requirements of the community. Sometimes, the reasons are beyond the control of the master developer, and that is more excusable.

But very often it is just because insufficient thought and expertise has been allocated to the pre-development stage.

Consider, for example, the Arabian Ranches (planned and developed by Emaar). A great concept – equestrian facilities with a desert’ style golf course, and a community shopping center for the residence.

To a greater or lesser extent, much of this has been delivered, but did anyone think about the increased traffic flow on Emirates Road, especially as Dubailand-related projects moved into the construction phase, and later still, the occupation phase?

Clearly not, I guess, or we would not have had to see a massive re-development of the traffic circle to accommodate this factor, which has a hugely debilitating effect on the residents to get in and out of their community especially at peak times. Emaar will argue that this is an RTA issue and beyond their control, but surely and major developer would be in collaborative consultation with the provider of roads and, in particular, traffic access and egress to their project site long before taking the project to the market?

I was recently witness to a presentation on a huge development, which was more of an urban planning process than just development plan and was impressed with the level of thought that had gone into the pre-development stage. This was less along the lines of exactly what the project needed to have and more along the lines of what type of experience the developer wanted resident and visitors to their project to have.

Apparently, the mandate to the master-planners identified six key requirements:

Memory – This related to the traditions and history of the site and an effort was to be made to retain these essential elements.

Pleasure – This had to do with the relaxation and recreation elements of the project, and was primarily related to the resort, and especially the beach and golf course zones.

Nature – The environment was to be protected but more than this, it was to provide open areas for residents to rest and play, parks and sports fields, and natural undeveloped areas to be enjoyed.

Art – This element related to the cultural and learning aspects of the development, and provided for both specialized educational facilities as well as broad based entertainment aspects.

Energy – This was the description given to the main commercial zone, where there was to be higher living densities and a sharing of resources and facilities. This is where business will be generated and careers built.

Family – There was to be allowance made for areas for the family to gather, children’s play areas, shopping and entertainment, food and beverage outlets, medical facilities, etc.
One could argue that there are other factors that are important and relevant, I am sure. But I liked this ‘Big Picture’ view of considering a living environment in which thousands of people are going to interact with each other on a number of different levels.

It moves away from the specific and deals more with the ‘experience’ that living in this community will offer. If the high level objectives contained in this mandate are constantly referred to in all planning aspects, then the details of what is to be done, and where and how, will start to take care of themselves, and specific infrastructural design will work around these criteria.

It is interesting also to note that the pre-development planning stage of this project has taken some two years where as I would guess that many of the master-planned communities that have been launched in recent years have taken much less time to conceive and to get promoted in the market.

Generally speaking, in this are of development, less time means less input from experts, and less time to consider and make adjustments, and this often equals to poor end quality of the project.
Furthermore, as the saying goes, the proof of the pudding is in the eating. The ultimate long-term success of a development would be measured by the sustained demand for residential properties or commercial space by companies with in the zone, which translates into continually rising values.

This is the measure of its real success, and the jury is still out, I think it is fair to say, on quite a few existing development zones that in the short-term appear to be winners.

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