Real Estate - the United Arab Emirates - Essay Example

Shaima 16/10/2007 Dr Frances Plimmer Research methods Real E Literature Review United Arab Emirates: The United Arab Emirates is made up of seven Emirates. They are Abu Dhabi, Ras al-Khaimah, Fujairah, Ajman, Sharjah, Umm al-Quwain and Dubai. Abu Dhabi is the federal capital of the UAE and is the largest of the seven Emirates, occupying around 70% (Christine & Nick p 10) of the total land area. While Dubai, considered as the commercial and investment hub, has emerged as the forerunner in the tourism and construction sectors. These two emirates (Abu Dhabi and Dubai) are still the dominant economic players in the country. The UAE is extremely rich in oil and, even though it lacks other natural resources, it expects current additional economic diversification to portray new financial as well as banking firms. It has become extremely wealthy after gaining foreign direct investment funding in the 1970s. The country has a rather high Human Development Index when compared to other Asian countries the country has risen 8 ranks on the Human Development Index. UAE Economic Outlook: UAE's nominal GDP grew at a great speed by 25.6% in 2005 to achieve AED485.5bn (US$132.3bn) (, United Arab Emirates Central Bank) this has been accepted by the central bank. Real GDP in 2005 grew quite rapidly by 8.2% to AED357.6bn on the back of extremely strong economic activity, and the prices of oil also grew at a fast pace resulting in big fiscal as well as external surpluses. Economic Growth in the last few years has highly increased the per capita GDP to a record high of US$28,147 in the year 2005 as compared with US$24,380 the year before (Marcus & Howard p 78). When Gulf Cooperation Council (GCC) countries are analyzed it can be said that that after Qatar, UAE has the highest per capita GDP. After looking forward, we anticipate economic growth to stay the same for both years 2006 as well as 2007. GDP is expected to grow by a good 14% for the year 2006 to reach AED553.4bn, whereas in real terms the economy is expected to achieve approximately 9.7%. Of a high growth rate UAE Real Estate: The UAE's property market sector wholly contributed to 7.4 percent of the country's GDP in 2005. That year, in 2005 it experienced an immense growth of 19.7%, as well as a CAGR of 13.5% during the period 2000 to 2005. This sector was buoyed by the increase in investment in infrastructure, the rise in the residential and non-residential units, and the country's development into an eye-catching tourist destination. Because of the country being transformed indication to the rise in residential and non residential units The real estate and construction sectors both accounted for 14.6% of GDP via government in 2005 (Marcus& Howard p 76). Dubai, the most important market for foreign investments has made some crucial improvements over the last few years. After allowing 100% possession for foreigners in selected locations, there have been some amendments to the law including the newly announced property law No. 3 of 2007 which was issued via government early this year. This law completely legalizes freehold ownership of land as well as property to UAE along with GCC nationals, whereas permitting equal rights to non-GCC expatriates in designated areas. The latest law fully permits expatriate homeowners to record and register all their property in their names through the Dubai Lands and Properties Department. Urban Planning 2030: Abu Dhabi Urban Structure Framework Plan 2030(Marcus &Howard p 75), a complete plan destined for the development of the city of Abu Dhabi that will aim to help, as well as guide, in making decisions for the next quarter of a century. The Government has also recently made an announcement regarding the establishment of a new Urban Planning Council to supervise the implementation of the plan for future development of urban planning policies. The plan has been made for the sole purpose of delivering upon the vision of Sheikh Khalifa bin Zayed Al Nahyan, President of the UAE as well as Ruler of Abu Dhabi, and for the continuous accomplishment of the grand design envisioned by the late Sheikh Zayed bin Sultan Al Nahyan and the enduring development of Abu Dhabi as an international capital city. More than Dh600 billion worth of development works are already at various stages of completion in Abu Dhabi, which has 96 billion barrels of proven oil reserves - enough for a 100-year supply at current production rate. The emirate also hosts three cities. The Dh55-billion Al Raha Beach Development, Dh100-billion Saadiyat Islands, the Dh30-billion Reem Island and the Dh40-billion Yas Island projects are some of the master developments taking shape in the emirate. Along with these, a large investment in downstream petrochemical sector, industries, aviation and tourism - Dh25 billion in redevelopment of Abu Dhabi International Airport and Dh30 billion in Etihad Airways - are all part of a larger plan to transform Abu Dhabi into an economic powerhouse in the Middle East. (http://archive.gulfnews.com/articles/07/09/21/10155159.html) The international urban planning task force that was created by the Executive Affairs Authority designed and implemented a versatile plan in order to create a Plan of Urban Structure Framework for the purpose of growth and development of its Emirate. The main principles outlined by the government for shaping the development of the city under Plan Abu Dhabi 2030, are that, Abu Dhabi will remain to be a contemporary expression of an Arab City, where the people continue to live in a healthy, close and supportive proximity with one another, in the first place. The taskforce predicted that complete development would take from 2007 to the year 2030. Work on the plan that shaped "Plan Abu Dhabi 2030" discussed the following fundamental matters: Encouraging meetings with Crown Prince of Abu Dhabi His Highness Sheikh Mohamed bin ZayedAl Nahyan, as well as senior legislative body the Executive Council of Abu Dhabi along with the senior representatives of the Department of Municipalities, in order to properly comprehend the vision for Abu Dhabi that would eventually guide the planning procedure. A chief social, cultural and economic analysis to identify the way of life in the Emirates, as well as the driving factors of demand in the real estate sector; A important environmental analysis to get a better understanding of the ecological property of Abu Dhabi, and its rare sea along with the desert location; A complete audit via city planning experts, to estimate the 'master plans' of future key developments in Abu Dhabi; An urgent analysis of the city's infrastructure and transport needs that are highly required , in requites of infrastructure as well as transport for the studying housing and settlement patterns. To also study design workshops, that is held in Abu Dhabi in the year 2007, in which many guest urban planning and community development experts from eight different countries as well as representatives from a lot of Abu Dhabi's authorities and departments work jointly to map out a successful and prosperous future for the city. The plan has been created under the directive of the President, His Highness Sheikh Khalifa bin Zayed Al Nahyan, to fulfil the grand design envisaged by the late Sheikh Zayed bin Sultan. The plan specifies the land uses, building heights and transportation plans for the entire metropolitan area of Abu Dhabi. The plan includes developing apartment buildings, eco-friendly villages and deserts, enhancing the transportation facilities and an extensive central business city in a new region in Abu Dhabi (http://www.khaleejtimes.com/DisplayArticleNew.aspxfile=data/theuae/2007/September/theuae_September512.xml§ion=theuae&col=) Key Directions The city's population possibly will grow to three million or it may go beyond five million by 2030. By then, Abu Dhabi's gross population is projected to surge to 3.1 million from the current baseline figure of 930,000 in 2007, while annual tourist visits and residential units are set to rise to 7.9 million and 686,000 from 1.8 million and 180,000 respectively. In any case, this Plan presents a sensible, flexible and sustainable vision of the future (Marcus & Howard p 70). The key directions comprise of the following: Sustainability It is necessary to provide accommodation for the fast growing new population without over development, without needlessly breaking buildings, and keeping in mind the conserving and respecting of natural and cultural resources. Oil has brought substantial wealth to the city; however it is a limited resource. Abu Dhabi's future lies in the capability to vigilantly use the wealth they already have to dynamically discover renewable energy production, to lessen the consumption of non renewable resources as well as to educate upcoming generations. A Unique Environment Planning for cautious, sensitive growth is practical so that we conserve the important natural environment that makes Abu Dhabi only one of its kind. It is vital to find out and preserve these distinct environmental and cultural facilities first and then decide where new development may best be positioned, keeping a fair balance between conservation as well as development. Protected areas can constantly be wisely developed at a later date, but it is extremely hard to get back a damaged environment. An Evolving Culture New development ought to be considered at a human scale to guarantee the city is still pleasant to live in even when the population passes approximately three million. There should most certainly be a range of housing and services, targeting each and every one of the income levels. Flexibility and creativity will be the source to developing the traditional way of living and concurrently accommodating the latest lifestyle choices that will surface in a constantly growing culture. Identity and Opportunity Abu Dhabi has an extremely rare chance to put forward a unique blend of features in its urban identity: an genuine and safe nevertheless also progressive and open Arab city; a personality solely made from the desert and the sea; a way of life that is completely traditional however with the latest 21st century options; it offers a place for business progress as well as a place where culture still holds importance. The city ought to be defined as a great deal by the natural islands and dunes that surround it as the infrastructure, streets, and homes to be urbanized. Excellence and Livability Abu Dhabi needs to classify the quality and quantity of development that is satisfactory to the city. It is sensible to use explicit development principles to estimate the planned projects and to not yield to persuasive marketing. The belief of a comfortable and convenient life must be persistent in every one of the development decisions that is made. Abu Dhabi will see strong demand for residential units across all sectors of the market as the population grows. Strong governmental and service sectors will lead to a gradual increase in the proportion of white collar workers. According to the Plan, number of residential units will jump to 686,000 by 2030 from 180,000 in 2007, 251,000 in 2013 and 411,000 in 2020 (El-Namaki p 5). Connectivity The main method of transportation today in the municipal environs of Abu Dhabi remains the car, supplemented by private bus companies. This situation clearly cannot depend only on the automobile; it cannot be sustainable once the population hits the figure of three million. The city will require a multi-layered transportation network to join the downtown center with latest growth nodes and the developed islands. In the similar logic, connectivity should be clear in a hierarchical system of open spaces that are formal and informal and are also biologically-significant areas that are highly protected. Hypothesis The Plan set out by Sheikh Khalifa Bin Zayed provides a modern, dynamic, sensitive and culturally sympathetic platform for the urban development of Abu Dhabi city Objectives to Achieve the Hypothesis The study has a number of objectives, each of the objectives play a vital role in supporting the above given hypothesis. The objectives are as follows: 1. To study the vision of Sheikh Khalifa bin Zayed Al Nahyan, of the development of Abu Dhabi. The vision of his highness is what made Abu Dhabi eligible for such dynamic development. Thus this objective will support the hypothesis, as it will give an in-depth explanation of how the concept of this development came into being. 2. The growth in GDP coming from the UAE real estate market will help in the development. Requirement for property in UAE has grown immensely in the past two years, thus the population will also grow by the year 2030. Due to this accommodation will have to be provided to the growing population and so it will become very necessary to develop the capital that is Abu Dhabi. 3. To study Abu Dhabi's urbanization with reference sustainability. Abu Dhabi's development in 2030 depends a lot on sustainability, as without it Abu Dhabi will lose its culture. 4. To study the urbanization of Abu Dhabi in the light of "Plan Abu Dhabi 2030". This plan completely focuses on the how Abu Dhabi will develop till 2030 thus completely supporting the hypothesis. 5. To study the role of Connectivity in the urbanization of Abu Dhabi. Without connectivity no city can be developed to it's fullest for which this objective has to be studied in order to achieve the hypothesis. 6. To study the identity and opportunity as a factor for urbanization of Abu Dhabi. In order for a city to develop it is important that many opportunities are given to the people who live there. It also gives a strong identity. Abu Dhabi till 2030 will be all this to it's its residents. Thus this objective will help in supporting the hypothesis. Conclusion Thus to conclude it can be said that Abu Dhabi should consider new development Work cited http://archive.gulfnews.com/articles/07/09/21/10155159.html retrieved on 13 October 2007 http://uaeinteract.com/docs/Abu_Dhabis_population_set_to_grow_to_3.1_million_by_2030/26936.htm retrieved on 13 October 2007 http://www.arabnews.com/page=4§ion=0&article=101464&d=21&m=9&y=2007 retrieved on 13 October 2007 http://www.estatesdubai.com/2007/05/abu-dhabi-chalks-out-plan-abu-dhabi.html retrieved on 13 October 2007 http://www.khaleejtimes.com/DisplayArticleNew.aspxfile=data/theuae/2007/September/theuae_September512.xml§ion=theuae&col= retrieved on 13 October 2007 M.S.S. El-Namaki; Strategy and Entrepreneurship in Arab Countries Dec 2007 p5 Marcus Noland & Howard Pack; The Arab Economies in a Changing World, Institute for International Economics, U.S. 2007 pp 70 -80 Nowell& Nick Crawley; Now & Then: Abu Dhabi Zodiac Publishing 2001 p 10 www.travelnotes.org/MiddleEast/emirates.htm retrieved on 13 October 2007 Read More