News
Pension funds are the main pillar to manage assets in the advanced world
The UAE is likely to attract further overseas investments despite the obstacles facing foreign investors in the country, senior portfolio manager at Emirates NBD Richard Lee told Mubasher.
Lee also suggested a raft of solutions to overcome these challenges and provide a safe environment for long-term foreign investments.
Most of the GCC stock markets, mainly in the UAE, have joined or are on the verge of being included in the main indices, he indicated.
This step will help in attracting foreign investors and boosting the local assets, the bank’s senior portfolio manager said.
The markets are expected to benefit from overseas inflows related to the JP Morgan Emerging Markets Bond Global Index, he added.
He noted that pension funds are the main pillar to manage assets in the advanced world.
The absence of public or private pension plans in the UAE and the GCC region in general throws sand in wheels of assets management growth, Lee said.
He also highlighted that the restrictions imposed on foreign ownership and the government’s holding of assets have led to a lack of initial public offerings (IPOs).
Restrictions on foreign investors have reduced the trading volume in the local markets, he noted, projecting a positive outlook in the long-term for assets management.
The recently upgraded stocks in the JP Morgan EM index are likely to attract foreign liquidity until the end of the year.
Source: zawya
Saudis issue 70 per cent more foreign business licences from a year ago
26 May 2019 Written by Admin AdminSaudi Arabia seeks foreign direct investment to help diversify the economy away from oil.
The Saudi Arabia General Investment Authority (SAGIA) said that the number of new licences approved for foreign businesses in Saudi Arabia rose by 70 per cent in the first quarter from a year earlier.
Ibrahim Al Omar, the Governor of SAGIA, said that applications from British and Chinese companies drove the increase, rising by 86 per cent and 71 per cent, respectively.
The fastest-growing industries were education, which the Kingdom only opened to foreign investors in November, and information and communications technology, added Al Omar.
The year-on-year growth in foreign licences follows Saudi efforts to remove restrictions on international investments. Yet, fresh foreign direct investment in the country has been modest.
SAGIA is working with the World Bank to improve its ranking on the ease-of-doing-business index, where it currently ranks 92 among 190 countries.
“We are reviewing all licencing requirements, and you will see a 50 per cent drop overall from government departments in terms of the time, cost and number of requirements to invest in Saudi Arabia,” Al Omar said.
Source: bankerme
DMCC – the world’s flagship Free Zone and Government of Dubai Authority on commodities trade and enterprise – has completed three roadshows this month visiting Sweden, the United Kingdom and China highlighting the opportunities available through DMCC for companies seeking expansion to global markets through Dubai.
DMCC’s senior management visited the cities of Gothenburg and Stockholm in Sweden for the first time with its Made for Trade Live international corporate roadshow. The events were held in partnership with the Swedish Trade and Investment Council (‘Business Sweden’), and with the support of the United Arab Emirates Embassy in Sweden, and the Swedish Embassy in the UAE.
80 Swedish business leaders and senior delegates attended the events, and discussed wide ranging issues such as Dubai’s economic growth, governance, regulation and trade; as well as DMCC’s infrastructure, products and services, and the positive impact Expo 2020 Dubai will have on the city’s local economy and the opportunity on offer to foreign companies.
The next stop on the Made for Trade Live roadshow was London. Staged in partnership with the London Chamber of Commerce and Industry, over 100 leading names of British business gathered in the room to discuss the opportunities for growth presented by Dubai.
DMCC’s position as a commercial hub and gateway to global trade flows was the focus of the discussion, especially within the context ongoing developments connected to Brexit.
To date, there are over 1,400 British firms registered with DMCC.
“Our mandate at DMCC is to drive new trade flows to Dubai.
These roadshows enable us to do just that by communicating the Dubai story and highlighting DMCC’s commercial appeal to foreign businesses. Our first visit to Sweden was very successful, and we look forward to working more closely with the Swedish business community and building partnerships in a new market,” said Ahmed Bin Sulayem, Executive Chairman and Chief Executive Officer, DMCC.
“With bilateral trade between the UAE and the United Kingdom expected to reach approximately Dhs 121 billion by 2020, it was important to visit London again this year.
DMCC offers British firms an unprecedented opportunity to expand their enterprise, and the economic impact of Expo 2020 Dubai should be appealing to all ambitious companies looking to do business in this part of the world,” he added.
Peter Bishop, Deputy Executive Chief, London Chamber of Commerce and Industry, added: “The London Chamber of Commerce and Industry was delighted to partner with DMCC on this project. Representing the interests of London businesses, it made sense for us to support the latest Made for Trade Live roadshow and communicate the tremendous opportunity in Dubai for British firms.
Our members represent some of the finest businesses in the capital, and I was encouraged to learn of the support offered by DMCC to foreign companies seeking to do business in the Middle East, Africa and Asia and beyond.” Feryal Ahmadi, Chief Operating Officer at DMCC was invited by the Chinese Government to speak at the International Forum on Free Trade Zones Development, a two-day forum in Hainan focused on promoting free trade.
The event was organised by the China Council for the Promotion of International Trade (CCPIT) and The People’s Government of Hainan Province.
“DMCC has become a commercial hub and a critical connection point for trade ties between the UAE and China. Committed to driving the next phase of commercial growth between the two countries, DMCC has embarked on a comprehensive strategy to attract Chinese firms to DMCC.
We have launched a range of bespoke Chinese-language services that have seen a rise of Chinese companies set up in Dubai and register with DMCC. This is only the beginning and we look forward to creating more opportunity for Chinese firms in Dubai which will in turn, support China’s Belt and Road Initiative,” said Feryal Ahmadi, Chief Operating Officer, DMCC.
Since its inception, DMCC attracted over 3,000 businesses from 17 cities around the world to its international roadshows. The programme brings together business leaders interested in expanding their home base and offers them insights into the commercial appeal of Dubai and the opportunities it offers for growth in the region and beyond.
DMCC Headquartered in Dubai, DMCC is the world’s most interconnected Free Zone, and the leading trade and enterprise hub for commodities.
Whether developing vibrant neighbourhoods with world-class property like Jumeirah Lakes Towers (JLT) and the much-anticipated Uptown Dubai, or delivering high performance business services, DMCC provides everything its dynamic community needs to live, work and thrive. Made for Trade, DMCC is proud to sustain and grow Dubai’s position as the place to be for global trade today and long into the future.
Source: .Gulftoday
Kuwait inaugurates the fourth longest bridge in the world for new megacity
24 May 2019 Written by Admin AdminThe bridge will bring the capital closer to the planned new free trade zone known as 'Silk City'
Kuwait inaugurated one of the world’s longest sea bridges on Wednesday, shaving an hour off the drive from the Gulf country's capital to an uninhabited area set to become the country’s major free trade zone.
The Sheikh Jaber Causeway, named after the late Sheikh Jaber Al Sabah who reigned during the Gulf War, is 36 kilometres long – making it the fourth longest bridge in the world.
Approximately 80 per cent of the bridge is over water and will connect Kuwait City to Subiya, where a 100-billion dollar mega-city is being built.
The bridge also makes Kuwait’s largest island 30 minutes from the Gulf state’s capital, having previously been a near two-hour drive.
The $3.6 billion causeway, designed by Paris-based engineering and consulting group Systra, took a consortium led by South Korea's Hyundai Engineering and Construction Co.
along with Kuwait's Combined Group Contracting Co four years to build.
The project is Kuwait’s largest construction feat to date and kicks off the country’s economic reform measures titled Kuwait 2035.
In addition to a free zone and port, Silk City envisions an airport, an Olympic stadium, a tower taller than Dubai’s Burj Khalifa, currently the world’s highest, and housing for up to 700,000 people.
However, some members of Kuwait’s democratically elected parliament have opposed what they say are laws that will allow the Silk City to function as a “state within a state”.
Some of Kuwait's top parliamentarians have expressed fears over how the project could fall outside of their jurisdiction, claiming that the laws governing Silk City could be completely different to those followed in the country.
The Silk City project is being led by the Emir Nasser Al Sabah, the deputy prime minister, and will see Kuwait partner with China to build the zone.
The opening ceremony was attended by Kuwait's emir, Sheikh Sabah Al Ahmed along with South Korean Prime Minister Lee Nak-yeon and the leader of the French senate, Gerard Larcher.
The Minister of Public Works and Minister State for Housing, Jenan Boushiri was also present, saying the bridge’s inauguration marks the first step towards Kuwait’s future away from an exclusively oil-dependent economy.
"We are beginning a new era in building Kuwait 2035, under the vision of your noble Highness and your high guidance, bearing in mind the aspirations of citizens and their aspirations for a better life committed to building a better tomorrow for the future of our generations,” she told reporters.
Mr Nak-yeon said Wednesday the causeway would establish Kuwait as an international trade centre connecting the Middle East with the rest of Asia.
Source: Thenational
Updated: UAE launches permanent residency visas for investors and skilled expatriates- Dubai ruler
24 May 2019 Written by Admin AdminTweets from Sheikh Mohammed bin Rashid state that there are around 6,800 investors eligible for the first batch of visas
The United Arab Emirates has launched the permanent residency system for investors and exceptionally skilled foreigners, the ruler of Dubai and prime minister of the UAE announced.
The permanent residency visa named the ‘Golden Card’ will be granted to investors and exceptionally competent individuals in the fields of medicine, engineering, science, and all arts, according to the official twitter of account of Sheikh Mohammed bin Rashid Al Maktoum.
The first batch of those eligible for permanent residency for a "Golden Card" in the UAE reached 6,800 investors, whose total investments reach 100 billion UAE dirhams ($273 million), according to one Arabic tweet by the ruler of Dubai.
Another tweet added that the permanent residency will be granted to those who contribute positively to the success story of the UAE.
”We want them to be permanent partners with us in our journey. All residents in the UAE are our brothers and part of our great family in the UAE,” the Arabic tweet said.
According to Anir Chatterji, Middle East immigration & employment leader at PwC Legal, the UAE has been at the forefront of driving change to the existing immigration structure (which is broadly the same across the GCC) and for opening opportunities for highly-skilled professionals to benefit from longer-term residency - thereby offering these individuals greater investment security and stability.
“This new development of permanent residency is an extension of this policy and it is likely to be viewed positively by the ‘in-scope’ individuals and business community at large as it will open the doors to more foreign direct investment and, in turn, sustained economic activity and development,” he said in emailed comments to Zawya.
“Many expatriates call the UAE home and this new development will allow individuals to stay in the UAE for a longer period, which is welcome news for investors, entrepreneurs, specialised talents, researchers, and outstanding students (and their dependents),” he added.
The announcement follows the approval of the Saudi Cabinet last week for granting ‘green card’-style visas for highly-skilled foreigners and owners of capital funds with other sets of benefits as part of a ‘Privileged Residence System.
“The recent announcement in Saudi didn’t necessarily have a direct impact on this. That being said, there has been a drive to standardise a number of initiatives in the immigration space in the GCC countries, and to continue to find innovative ways to attract sustained economic investment activity and prosperity,” Chatterji said.
“This means the opening up of the historically static immigration regime is a key enabler for facilitating such change, and we consider that the recent announcement in the UAE is a welcome step for the business community at large,” he added.
Source: ZAWYA
Card payments in the UAE in 2018 were recorded at 70% compared to 68% in 2017.
The e-commerce sector in the UAE is all set to record a strong performance over the next few years, driven by an ever growing number of online shoppers, who are confident about making various purchases online.
Experts have noted that shoppers across the UAE and the Middle East and North Africa (Mena) region are enjoying the many benefits that come with using cards over cash for their transactions. The popularity of cards will only continue to grow as retailers in the region look to capitalise on their popularity with shoppers.
"With the world becoming more connected and consumers' trust on online shopping evolving, we believe that consumer spend via online retail platforms will see significant growth in the coming years," said Shahebaz Khan, general manager for the UAE at Visa.
"The UAE's e-commerce market is estimated to be worth $27.1 billion in 2022. The possibilities for merchants, financial institutions and consumers are enormous, and it is vital, therefore, that we continue to build consumers' trust and improve the infrastructure of online payments so that consumers can benefit from more seamless, rewarding and secure shopping experiences."
"We're seeing positive trends in terms of UAE consumers' attitudes towards e-commerce," he added. "As part of Visa's annual Security Week, we conducted a survey that examined how they perceive online shopping, with the findings revealing that 66 per cent of consumers in the UAE trust online shopping and that 70 per cent trust online payments."
Similarly, Girish Nanda, general manager, UAE & Oman at Mastercard, noted that transactions in the e-commerce space are growing at a much faster rate than transactions at Point-of-Sale (POS) terminals. "We expect this trend to continue in 2019 and 2020; there are two key factors driving this trend: first, the growth of online or e-commerce merchants with business models that can be scaled up faster than traditional brick and mortar models, and second, a growing number of retail, F&B and travel businesses going online with their operations.
Consumers across the globe now expect their cards to work across all popular platforms, whether it is for e-commerce, mobile wallets like Apple Pay, Google Pay, Samsung Pay or contactless payments.
The UAE is no different, given consumers' increasing demand for safe, secure and seamless payment experiences."
"We've seen a six-fold increase in contactless transactions in the UAE since 2017," he added. "In fact, one in every four transactions in the UAE is now contactless, highlighting two key trends: first, the country's gradual transition into a cashless economy, and second, growing confidence in card payments, mobile wallets and new payment technologies."
According to data published by Visa, cards are continuing to gain popularity over cash. When it came to digital transactions, card payments in the UAE in 2018 were recorded at 70 per cent, compared to 68 per cent in 2017.
Cash on delivery, during the same period, fell from 22 per cent in 2017 to 15 per cent last year. Visa's research also indicated that once shoppers have found new ways of payment, they are going to continue using them. Looking at contactless cards, 52 per cent of non-users said that they are likely to start using them in the near future.
Similarly, 46 per cent of non-users say that they are likely to start using digital wallets in near future.
Offering a review of the UAE's spend trends in 2018, Pankaj Kundra, SVP, head of Payments at Mashreq Bank, said that consumer card spends experienced a six per cent growth in 2018, compared to 2017. The biggest winner, he said, was e-commerce, which saw spending increase by 48 per cent as opposed to 2017. In terms of sector wise performance, growth was driven by food and beverage, which increased by 20 per cent, followed by a 16 per cent growth in supermarket spends. Hospitality continued growing with a modest increase of two per cent.
"While brick-and-mortar merchants have already expanded their product offering into the e-commerce space, this expansion may be at the cost of the cannibalisation of their traditional business, through the equivalent growth in their e-commerce channel," he said. "However, merchants who have been unable to expand their offering into the e-commerce space can expect to lose business to innovative and multi-channel competitors. The growth of e-commerce marketplaces, such as Souq and Noon, is encouraging increased confidence in buying online, which in turn is driving this growth. The UAE is also seeing a rapid rise in the use of e-commerce service providers like ride aggregators, who have delivered growth of 12 per cent, and food delivery services have seen a growth of over 100 per cent."
"For 2019, as we gear up towards Expo 2020, we are very optimistic about sustained growth in payments volume in the UAE," he added.
"We have identified four key trends that we anticipate will drive transaction volumes: continued e-commerce growth, contactless gaining more traction via increased usage of digital wallets, cash-to-card conversion in segments like B2B payments, education, government, real estate and sustained increase in international spends."
Sanjit Gill, general manager, Middle East at Collinson, revealed that the evolving world of loyalty means that brands must continuously adapt and look for ways to meet their customers' needs.
"Consumers shop through a mixture of in-store and online, providing data at every touchpoint in their browsing and purchasing journey.
This data is there for retailers to respond to, providing it is collated into a single customer view.
If used effectively, this single view can tell you who your customers are and what they want. If brands choose to ignore this data, however, they stand to lose out.
Our research found that 81 per cent of UAE consumers feel frustrated when promotions aren't aligned in-store and online. Not using available data effectively can leave customers feeling uncherished and as though their custom isn't a priority."
In addition, 78 per cent of UAE consumers would be unhappy if retail brands they were loyal to had poor communication around the latest promotions and discounts.
"Brands have a duty of service to offer better, more personalised communication experiences with the customer data they accrue, otherwise they risk people opting out of consent and losing their initial attention, and perhaps in the long term, their loyalty," he said.
Source: khaleejtimes
Now UAE consumers can start banking via WhatsApp, Emirates NBD announces
27 Apr 2019 Written by Admin AdminPeople can do more than just chat on messaging app, as first 'chat bank' service rolls out.
Dubai: So much has changed in the way people communicate and share updates since the introduction of social media and instant messaging apps. Now, the way people bank is changing, too.
One of the leading financial institutions in UAE has rolled out for the first time a chat banking solution, enabling savers and banking customers in the country to execute financial transactions on WhatsApp.
Emirates NBD confirmed on Sunday that its customers can now “chat bank” via the instant messaging app, said to be a first in the Middle East region.
The new service seeks to tap the growing population of consumers who bank via the internet on a regular basis.
The bank said it has seen a rapid increase in digital transactions, with over half of its customers actively using mobile and online banking The latest innovative solution is made possible through Infobip, an easy-to-use secure channel that lets people do banking transactions without having to log in to their online accounts or walk into a physical branch.
With the “chat bank” service, customers, particularly those who are constantly on their mobile phones, can now check via WhatsApp their account balances, the last five transactions of their accounts or credit cards and last credit-card mini statements.
They can also temporarily block or unblock cards and request for new chequebooks or the latest foreign exchange rates.
Lest users are afraid the transaction can easily get hacked into by fraudsters, the bank assured that all messages on its “WhatsApp Business” account are encrypted.
To ensure the communication is secure and official, customers only need to watch out for the green badge next to the bank’s name in the chat window.
And what’s more, customers can bank via WhatsApp anytime, as it’s available 24/7.
“We believe the new offering will complement our existing ddigital banking channels and offer security along with the simplicity and convenience of instant responses, 24/7,” said Abdulla Qassem, group chief operating officer of Emirates NBD.
“WhatsApp is a simple, reliable and private way to talk to anyone in the world, which will lend further convenience to banking with Emirates NBD," added Suvo Sarkar, senior vice president, head of retail banking and wealth management at Emirates NBD.
How to subscribe?
Customers are requested to SMS ‘WhatsApp’ to 4456 using their registered mobile number, or alternatively, they can subscribe through mobile or online banking, to start banking via WhatsApp.
Source: gulfnews
Siemens scores six major cities, including Dubai, on their readiness for digitisation and their potential to become smart cities
Dubai is making excellent progress in its drive to become a smart city which embraces digitalisation and develops new ways of living, working and interacting, according to Siemens.
Its Atlas of Digitalisation report is based around the interconnected themes of Expo 2020 Dubai – mobility, sustainability and opportunity – and assesses how the fourth industrial revolution has already impacted urban life around the world, and the potential it could have in the future.
Data from 21 indicators has been analyzed by Siemens together with Signal Noise, part of the Economist Group, in Dubai, Los Angeles, London, Buenos Aires, Taipei and Johannesburg to produce a digital readiness score.
Dubai gained scores of six out of 10 for both readiness and potential. This compared to London which scored eight for readiness but only three for potential while Los Angeles scored seven and three respectively, Taipei scored six and three, Buenos Aires scored four and four and Johannesburg scored two and six.
The analysis recognises Dubai’s advanced implementation of digital technologies in areas such as smart metering, online connectivity, mobility and smart government, and initiatives such as Smart Dubai which are supporting its ambition to be the happiest city on Earth.
It also identifies potential for digitalisation to positively impact areas such as renewable energy, which Dubai is already addressing via its clean energy strategy.
The analysis considers areas such as smart electricity and transport systems, internet connections and digital governance services.
The score reveals the current level of maturity of each city’s digital infrastructure, and its preparedness for a connected future.
“Each city must address its own unique mix of challenges and opportunities by embracing digitalization; the key to sustainable, livable future cities,” said Dietmar Siersdorfer, CEO, Siemens Middle East and UAE.
“The Atlas of Digitalization gives us an all-important understanding of the current status of digitalization in cities around the world, and the data tells us Dubai has already made excellent progress in key areas. Dubai is on a successful path thanks to strong ambition and visionary leadership, and we hope the Atlas will inspire new ways of thinking to shape the smart cities of tomorrow, and realize the global potential of City 4.0.”
The analysis also takes into account areas such as innovation, greenhouse gas emissions and time spent in traffic to give the cities a Digital Potential Score, indicating where there is opportunity to grow digital capabilities to transform society and economy.
While each city is unique, they all share one characteristic - their ingenuity in using digital technologies to make infrastructure more efficient and productive, and to address challenges such as air pollution, congestion, population growth and natural hazards, Siemens said.
Source: arabianbusiness
Property investors can secure best returns and a long-term UAE visa
25 Apr 2019 Written by Admin AdminInvestors can get a five-year residence visa when they invest in a property worth at least $1.36mln.
The UAE offers plenty of opportunities to foreigners who are willing to invest in real estate sector to secure a long-term visa following a reform process initiated by the government last year.
Property investors can invest in more than 40 communities across the UAE, mainly in Dubai, to secure a long-term visa and better returns on their investment.
Majority of foreigners prefer to invest their money in residential properties, but real estate experts suggest that commercial properties can also offer strong returns.
As per the new UAE regulations, property investors can get a five-year residence visa when they invest in a property worth at least Dh5 million. The ruling applies both to secondary and new properties above Dh5 million and Dh10 million.
Manika Dhama, head of Strategic Consulting and Research at Cavendish Maxwell, said residential properties in Dubai, particularly in branded or serviced apartment categories, above Dh5 million offer investment opportunities for those seeking a long-term visa under new regulations.
"Certain villa or townhouse communities in Abu Dhabi and Northern Emirates like Ras Al Khaimah also offer such investment opportunities," she added.
Dhama said requirements for these new long-term visa currently state cash-only investments. Therefore, more clarity is required on how this is applicable to single units or entire buildings, land, etc, she said.
"Bulk residential units in higher yield areas like International City may prove to be a better investment option in the Dh5 million and above category, particularly for those with a higher risk appetite, than a single villa where yields tend to hover around 4-5 per cent," said Dhama.
"Indians, Pakistanis and Britons will remain top 3 investors seeking long-term visa through property investment," she said while referring to majority of investment in Dubai's property sector coming from India, Pakistan, Britain and Saudi Arabia.
Leading communities
There are 31 communities across the emirate of Dubai where Dh5 million worth of investment can get a 5-year visas, according to data provided by Cavendish Maxwell.
Al Barari, Al Furjan, Arabian Ranches, Arabian Ranches 2, Bluewaters Island, Business Bay, City Walk, Culture Village, Damac Hills, Downtown Burj Khalifa, Dubai Harbour, Dubai Marina and Dubai Science Park (DuBiotech), are included among those communities.
Other areas where investors can invest for long-term visas are: Dubai Sports City, Emirates Living, Jumeirah Beach Residence, Jumeirah Gold Estates, Jumeirah Islands, JLT, Jumeirah Park, Living Legends, Meydan City, Mohammed bin Rashid City, Motor City, Palm Jumeirah, Pearl Jumeirah, Dubai Creek Harbour, The Villa, Zabeel (WTC Residence), World Islands and Jumeirah Bay Island.
While the eight communities in Abu Dhabi for long-term visa are Saadiyat Island, Nurai Island, Al Reem Island, Marina Village, Al Raha Gold Gardens and other communities in Al Raha area including Al Zeina, Al Manara and Al Bandar.
Taimur Khan, head of research for Middle East at Knight Frank, said majority of the properties above Dh5 million price range are villa properties in locations such as Emirates Hills, The Palm Jumeirah, Emirates Living among others.
In addition, there are also a number of luxury apartments which are available in Dubai's established prime area such as Downtown Dubai and Palm Jumeirah. "We are also seeing new offerings come to the market in Dubai Marina, Bluewaters, Jumeirah and City Walk."
In Abu Dhabi, majority of residential properties above Dh5 million are villas on Saadiyat Island while some prime apartments are available above this price point on Saadiyat Island, Yas Island and Al Raha Beach.
"Whilst there are other locations where properties above this value are available, the aforementioned locations are where non-GCC national are able to buy property," he said.
He noted that investors' focus will be on properties which are not only of great quality but are also part of a community.
Restoring confidence
Fadi Nwilati, CEO, Kaizen Asset Management Services, stated that the UAE's long-term visa strategy has reinforced confidence among expatriates and given a greater feeling of permanence in the UAE.
"We have seen a direct impact on foreign investment increase outside of the GCC, especially from India and Pakistan. As an organisation, we have in particular discussed this topic with business owners, since business owners have started expressing interest to buy rather than rent properties. There is a lot of excitement in the market, but it is far too early to see tangible results. We are looking forward to seeing the tangible impact in the next three years," Nwilati said.
"There are currently around 5,500 properties valued at over Dh5 million on the listing portals. Residential investors can look at areas like Arabian Ranches 2, Dubai Hills, District One, Tilal Al Ghaf, Al Barari and Palm Jumeirah. On the higher end, investors can look at Palm Jumeirah, Emirates Hills, Royal Atlantis residences and Opera District to name a few," Nwilati added.
Jake Wright, investment director, Smart Crowd, believes that the long-term visas will provide individuals greater comfort around their mid- to long-term future, allowing them to better plan their lives within the emirate.
"Working on a two- to three-year visa may deter people from making key life decisions i.e. shall I buy a property to live in, shall I invest some of my savings or even smaller purchases such as furniture etc. All of which a key factors in creating a thriving economy," said Wright.
Commenting on commercial properties, Andrew Love, partner and head of Commercial and Investment Agency at Cavendish Maxwell, said prime office assets in areas of Dubai like Downtown, Internet City or JLT, with good tenants and long-term leases, may generate a yield of up to seven per cent. Certain multi-let industrial and logistics assets in areas like DIP might provide 10-11 per cent in returns.
"Often, these investments start at Dh12 million, with typical transaction values between Dh50 million and Dh100 million," Love said.
He said other commercial assets like retail community malls may generate 8-12 per cent, with investments ranging from Dh15 million to Dh200 million. Labour accommodations often offer the best returns, more than 15 per cent, but also carry the most investor risk due to high tenant turnover and cyclical rents.
Shailesh Dash, chairman of Dubai-based, Gulf Pinnacle Logistics
The Expo 2020 Dubai event has already spurred business opportunities for various sectors, with logistics being one of the prime gainers, say experts.
With less than 19 months left for the inauguration of the Expo 2020, its organisers have further speeded up the pace of allocating contracts to thousands of local and foreign firms to ensure timely preparation of the event, which is set to be the largest of its kind in the Arab World.
So far Expo 2020 Dubai has awarded 56 per cent of contracts to small and medium-sized enterprises.
Meanwhile, more than 26,000 companies from 150 countries have recently applied to be involved in the event.
The 173-day milestone Dubai exhibition expects to welcome 25 million visitors and more than 200 international participants from 190 countries.
"When foreign companies get contracts in the UAE, they need professional support of logistics specialists with wide local and international network to move their set up and equipment to the Gulf country.
Contractors of Expo 2020, which is extraordinarily big in magnitude, therefore rely on reputable and experienced logistics players to become their strategic and operational partners.
After all, freight forwarders do much more than moving containers. We guide organisers, contractors and exhibitors throughout different customs procedures, time frames and operational complexities," said Shailesh Dash, chairman of Dubai-based, Gulf Pinnacle Logistics.
Rodney Viegas, CEO of AbdulMuhsen Shipping and So Safe Logistics, said: "Thanks to the increased momentum of Expo 2020 preparations, the logistics sector in the UAE - which according to the 2019 Agility Emerging Markets Logistics Index ranks first in the region and third globally - is witnessing a business boom, when other sectors are observing slow growth.
Expo 2020 is expected to drive the logistics and supply chain segment even further and cement the UAE's position as a global leader in logistics.
With our strong global agent network, we are equipped to provide end-to-end logistics solutions to fulfil the client's comprehensive list of logistics requirements on time."
Source: khaleejtimes
