Emaar Properties Partners With Standard Chartered Bank To Offer Two Easy Home Finance Options

Emaar Properties has partnered with Standard Chartered Bank to extend two easy home finance packages for all its projects in Dubai that will be delivered in the next nine months.

Standard Chartered Bank will offer two mortgage products – the Asset Back Lending (ABL) Product and Standard Mortgage Product (SMP). The Asset Back Lending (ABL) Product offers an easy loan of up to 40 per cent of the property price with mortgage of AED 100,000 to AED 2.5 million will be provided for a tenure of 3 to 25 years.

The Standard Mortgage Product offers a standard loan of up to 75 per cent of the property price. Potential end-users and customers can obtain financial support from AED 150,000 to AED 10 million for a tenure of 3 to 25 years.

The home finance options will cover an extended portfolio of Emaar projects including apartments and villas in Dubai in prime locations such as Downtown Burj Dubai, Dubai Marina, Arabian Ranches and Emirates Living. The ABL easy loan is particularly tailored for current investors and end-users seeking financial support to complete the remaining payments before handover, while the standard mortgage will appeal to all potential home-buyers.

Mr Ahmad Al Matrooshi, Managing Director – UAE, Emaar Properties, said: “The partnership between Emaar Properties and Standard Chartered Bank is a huge confidence booster for Dubai’s property sector, as it marks the strengthening of liquidity levels. Emaar has always been at the forefront of industry-leading initiatives and this collaboration will further invigorate the market and strengthen investor confidence.”

He added: “The two easy mortgage plans are tied in for the projects that are to be delivered in the next nine months. The ABL product, an easy loan, particularly underscores our commitment to support investors who have been affected by the unprecedented challenges of the global financial crisis.”

Commenting on the partnership, Chris de Bruin, Head of Consumer Banking, Standard Chartered UAE said, "This is an exciting opportunity for Standard Chartered to broaden the core range of our home finance solutions which are offered by us in both conventional and Shariah compliant varieties. The introduction of this new line up is part of the larger consumer banking concept that Standard Chartered has created specifically to be more customer centric.”

Potential customers can visit the Emaar Sales Centre within Downtown Burj Dubai or the nearest Standard Chartered Bank branch located at Emaar Business Square and complete the formalities to avail of the mortgage. They can also call toll-free 800-EMAAR (36227) or the Standard Chartered Bank hotline at 600-522288 for more details. Customers can also email at home.loans@sc.com to fix an appointment with SCB’s Home Loans Sales Representatives.

Emaar has already handed over several thousand homes in Dubai. World-class villas and apartments in integrated communities with all lifestyle amenities are being developed in Downtown Burj Dubai, Arabian Ranches, Dubai Marina and Emirates Living – the four Emaar communities.

Investment Corporation Of Dubai Joins Long-Term Investors Club

His Excellency Mohammed Ibrahim Al Shaibani, Executive Director and Chief Executive Officer of the Investment Corporation of Dubai (ICD), the investment arm of the Government of Dubai, today signed a membership accession agreement on behalf of ICD with the Long-Term Investors Club.

ICD joins a group of European sovereign funds such as CDC of France, KFW of Germany, European Investment Bank and Cassa Depositi e Prestiti from Italy, which formed The Long-Term Investors Club in 2008, against the backdrop of the global financial crisis. The Club was formally launched in April 2009.

The Club now includes members from across Europe, Asia, North America and the Middle East. Collectively, the Long-Term Investors Club controls in excess of €3 trillion of assets. The Club, which is dedicated to encouraging and promoting long-term investment, organises a range of activities such as sharing best practices among members, promoting academic research, assisting in communications with political stakeholders and facilitating joint initiatives.

The signing ceremony was held on the sidelines of the Paris Conference for Long-Term Value & Economic Stability, which took place today in the French capital. The one-day event, which was attended by leading public and private-sector decision-makers from across Europe, Asia and the Middle East, was held in cooperation with the Organisation for Economic Co-operation and Development (OECD). The conference featured an introductory address by OECD Secretary-General Angel Gurria, as well as an evening dinner reception attended by 2007 Nobel Peace Prize winner Rajendra K. Pachauri, Chairman of the Intergovernmental Panel on Climate Change.

“On behalf of the Long-Term Investors Club, it is a great privilege to welcome the Investment Corporation of Dubai as one of the newest members of this increasingly diverse organisation dedicated to enhancing dialogue and sharing best practices. This is the first time since launch that we have opened the Club to new members, and ICD is among the first of several prestigious institutions to join from across the global spectrum encompassing the Middle East, North Africa, Russia, China and the Americas,” said Augustin de Romanet, Chairman of the Long-Term Investors Club, and Chairman and Chief Executive Officer of Caisse des Depots, a preeminent public-sector financial institution that performs public interest missions on behalf of France under the supervision of the French Parliament.

“Under the leadership of His Excellency Mohammed Ibrahim Al Shaibani, ICD continues to demonstrate its commitment to stable and sustainable long-term investment and value creation,” said De Romanet. “We are convinced that ICD will make a vital contribution to the Club and will also benefit from its membership through extending its own network to reach prestigious and well-established institutions.”

“The Long-Term Investors Club was founded upon the central tenet that long-term investors make a positive contribution to the global economy by supporting sustainable economic growth. At the Investment Corporation of Dubai, we share that belief and demonstrate our commitment to it through the investments we make in the economy of Dubai,” said Al Shaibani. “By joining the Long-Term Investors Club, ICD also affirms its commitment to the principles of good governance outlined in the Club Charter.

”Since our founding in 2006, the Investment Corporation of Dubai has nurtured the growth and development of the emirate,” he added. “We have achieved this through strategic, long-term investments in companies that have attained the status of global excellence and that define the industrial, retail and financial landscape of Dubai. Our membership in the Long-Term Investors Club will allow us to further contribute to the sustainable development of Dubai, and to the global dialogue on the importance of long-term investment.”

Emaar Properties Hands Over Alma Townhomes In Arabian Ranches Ahead Of Schedule

Emaar Properties has highlighted its commitment to project delivery, despite the challenges of the global financial crisis, with the hand over of Alma townhomes in Arabian Ranches five months ahead of schedule. The company had recently also completed and handed over La Avenida, a cluster of 17 luxury villas within Arabian Ranches, eight months ahead of schedule.

A community of 212 luxury homes, Alma townhomes in Arabian Ranches had gained overwhelming investor response when launched in 2007. Emaar was to have delivered the homes in end-November but has now completed the villas, which are being handed over. Customers are given a preview of the homes before the hand-over process starts this week.

Mr Ahmad Al Matrooshi, Managing Director – UAE, Emaar Properties, said: “We have an established track-record in delivering projects with several thousand homes handed over in Dubai and other key markets globally. Emaar is reiterating our commitment to customers with the completion and hand over of Alma townhomes and La Avenida several months ahead of schedule.”

He added: “Emaar achieved this milestone by working in close cooperation with contractors and consultants with a focus on optimising resource use efficiency and maximising productivity. This is in line with our growth strategy to identify opportunities that co-existed with the unprecedented challenges of the global financial crisis.”

Located in District II of Arabian Ranches, the established master-planned community by Emaar, the Spanish-styled Alma townhomes enjoy a prime location and are in close proximity to several Dubai landmarks and business nerve-centres including Jebel Ali Free Zone, Dubai Investment Park, Global Village, Dubai Internet City and Dubai Media City.

The homes also offer easy access to the city’s premier leisure destinations such as the Arabian Ranches Golf Club and Dubai Polo & Equestrian Club. The community also features an established school – JESS, the Hayya! Health Club, retail centres and healthcare facilities. The two-storeyed, lakefront Alma homes range in size from 2,400 to 3,150 sq ft, and feature luxury finishes and fittings.

Emaar is progressing on the completion of its projects, which are in varying stages of development. The company has four established communities in Dubai already – Emirates Living, Arabian Ranches, Dubai Marina and Downtown Burj Dubai.

H.E. Sheikha Lubna Bint Khalid Al Qasimi, UAE Minister Of Foreign Trade Launches HSBC Trade Confidence Index In UAE

UAE’s small and mid-market businesses (SMEs and MMEs) that engage in export and import have identified The Middle East as the most promising region for growth in the next three months, according to the new HSBC Trade Confidence Index. Fifty-seven per cent of survey respondents in the UAE cite the Middle East as the region with the best growth prospects, compared to only seven per cent and six per cent of UAE respondents respectively who expect growth from Greater China and Western Europe (including UK).

The index also shows the UAE traders are the most confident on trade activity growth over the next three months while traders in Hong Kong and Singapore are the most bearish. The UAE scored 115.2 points on the trade confidence index, the highest of any other country surveyed, compared to Hong Kong at 93.1 and Singapore 99.9, the other major trading centers covered in the survey.

In the first survey of its kind, the HSBC Trade Confidence Index asked 2,100 trade-oriented SMEs and MMEs in 24 cities across seven countries about their three-month outlook on: trade volume; buyer and supplier risks; the need for trade finance; access to trade finance; and the impact of foreign exchange and government regulation on their businesses. The results were used to calculate an index ranging from 0 to 200 where 200 represents the highest confidence level, 0 represents the lowest and 100, neutral. Full survey results can be viewed in the attached slides.

H.E. Sheikha Lubna Bint Khalid Al Qasimi, UAE Minister of Foreign Trade said: “If the HSBC Trade Confidence Index is of any indication, it’s a clear sign that the UAE continues to be a place to do business and capture growth opportunities. The UAE has taken several rapid and practical steps to cope with the implications of the global financial crisis; the Government guaranteed bank deposits and offered substantial financial facilities to banks amounting USD 32 billion in the fourth quarter of last year, boosting confidence in the UAE’s economy and confirming the ability of country to deal rapidly, immediately and positively with the latest economic developments”

Simon Cooper, Deputy Chairman and CEO, HSBC Bank Middle East Ltd said:
“Developing economies such as the UAE are reporting brighter prospects for trade business because in many cases their economies are not as heavily reliant on Western markets as some of the other countries covered in the survey. In the UAE, government measures to stimulate the domestic economy are also buoying business confidence. The UAE and the wider Middle East are expected to recover faster from the downturn and continue to grow in 2010.”

Kersi Patel, Regional Head of Trade and Supply Chain, HSBC, said: “Trade is the lifeblood of the UAE economy and its Trade to GDP ratio of over 130, one of the highest in the world, is testimony to this. The UAE enjoys a strategic location as a gateway to regional markets covering over half of the world’s population – population which is young and getting increasingly prosperous – within around four- hour flying distance. Equally important, the UAE government has exerted enormous efforts to boost the trade sector by investing heavily in trade-related infrastructure and providing incentives even in the current difficult environment through the reduction of operating costs and the promotion of a business friendly environment.”

In summary, the HSBC Trade Confidence Index provides two perspectives on the trade outlook in the region:
• the more developed markets of Hong Kong, Singapore and Australia are less optimistic – exports are significantly down and the recession continues to impact overall economic activity and sentiment; and
• the developing economies of the UAE, India, mainland China and Vietnam are more positive, even if they are not immune to the slowdown.

Outlook on trade volumes
UAE respondents are quite positive in their outlook on trade volumes, with 34 per cent saying they expect volumes to increase in the next three months. In contrast, Singapore and Hong Kong are less positive, with only 29 per cent and 24 per cent of respondents respectively expecting trade volumes to increase.

Outlook on impact of government trade regulation
50 % of traders in UAE expect emerging government regulations to benefit their businesses – indicating strong faith in Government to take proactive steps to support business, much higher than 33% in Singapore and only 8% in Hong Kong

Outlook on the need for trade finance
39% of the respondents in the UAE said they will need more trade finance in the next three months compared to only (30%) in Hong Kong and (20%) in Singapore.

When asked where they will go for financing, at least half of the respondents in the UAE (49%), Hong Kong (50%), Singapore (39%) said they expect their banks to meet their trade finance needs. In contrast, 25 per cent of respondents in the UAE said they will rely on self-funding over bank financing.

Outlook on buyer and supplier-related risks
For the next three months, the majority of respondents across Asia expect little change in the level of risk they face from suppliers not honouring their trade agreements. However, about one-third of respondents in Hong Kong (31%), Singapore (24%) and UAE (18%) expect the risk of payment default by their buyers to increase.

When asked what they will do to protect themselves from risk of non-payment by buyers, traders in the UAE (27%), Singapore (16%) and Hong Kong (10%) identified greater use of secured trade finance products through their banks as the top strategy.

Mr Patel noted: “More than ever, suppliers are anxious about getting paid on time – or getting paid at all. Buyers are less likely to make payments before they are certain that all terms in the trade agreement are met. While they have been a preferred way of securing trade receivables in the region, structured trade finance solutions like Standby Credits, Documentary Credits, Confirmations and Avalisation, have now made a strong comeback across many parts of the world due to the increased security they provide to buyers and sellers.”

Mr Patel added that: “In the current environment we are seeing an increase in frivolous disputes being raised by buyers with a view to avoiding payment, and therefore the usage of structured trade products complemented by having a reputed and preferably the same Bank at both ends of the trade transaction is the best way for exporters to cover the risk of non payment by buyers.”

Outlook on impact of foreign exchange on business

In contrast to most other countries, respondents in UAE expect to benefit from fluctuating exchange rates (39%).

Mr Patel observed: “Managing foreign exchange risk has always been a challenge for traders buying and selling in different currencies. Today the risks are greater as businesses face highly volatile foreign exchange markets and hedging has become a key solution supplementing structured trade products for many companies engaged in trade.”

Better Homes Witnesses A Positive Market Reaction

Better Homes, the region’s largest real estate agency, has witnessed some positive results over the past two weeks, where both general enquiries and transactions are on the rise, after a dip in recent months in light of the affect the global financial crisis has had on the UAE.

Better Homes has engaged in a number of promotions and campaigns throughout the first half of 2009, where it has focused on offering carefully selected units to its clients, through various marketing methods and channels, within both the sales and leasing segments of its business.

Following a summer promotional ‘Open Day’ event last weekend at its Jumeriah Beach Residence branch in line with the start of Dubai Summer Surprises, Better Homes recorded an overwhelming response to its summer offers of inventory for sale and for rent. “There were no signs of repressed customers during our Open Day weekend” said Jannie Biddulph, Sales Manager, Better Homes. “Our Open Day promotion received over 350 walk-in customers, seeking both properties for sale and for rent”.

During the past two weekends, Better Homes has focused on promoting competitively-priced units in areas of demand through its Open Day initiative and received over 1,400 calls in just two days during the selected promotions. “The positive result indicates that despite the recent market downturn, if the right product is offered to the client at the right price, at the right time, there is a good opportunity to transact units within both sales and leasing” said Ms Billy Rautenbach, Director of Operations, Better Homes.

With a specific customer and the right product in mind, Better Homes has been able to successfully match buyers and tenants with units, at a price which aims to satisfy its clients, creating positive results. “For example, our number of leasing transactions is looking very positive”, added Ms Rautenbach. “In May this year, we executed 24% more leasing transactions than in May 2008”.

With general enquiries on the increase and talk in the market of mortgages becoming available soon, Better Homes expects to see continued success in leasing and see an increase in property purchases sooner than expected. “As soon as lending becomes available at a wider scale, we expect to see a rise in sales transactions”, added Ms Rautenbach. “It is difficult to forecast an exact trend, but if the UAE real estate market, specifically in Dubai, is bottoming out as many have suggested [and Better Homes has noticed an increase in prices in select areas], then now would be the definitive time to invest in property”.

UAE Has Recovered Quickly From The Global Financial Crisis : Hamdan

The UAE has managed under its prudent leadership to recover from the world financial crisis rapidly, said H. H. Sheikh Hamdan Bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, at a keynote address to the Islamic banks conference.’’The conference seeks to devise a sound concept to deal with the choking economic crunch the governments, firms and individual are passing through,’’Sheikh Hamdan told the meeting which was opened by H.H. Sheikh Majed bin Mohammed bin Rashid Al Maktoum, Chairman of Dubai Culture and Arts Authority. The Four-day banking forum is being organised by the Department of Islamic Affairs and Charitable Activities (DICD). ’’Dubai has the honour as the leader of the Islamic banking industry when Dubai modern maker the late Sheikh Rashid bin Saeed Al Maktoum launched the Dubai Islamic Bank,’’ Sheikh Hamdan said in his address read on his behalf by Dr. Hamad Al Shaibani, Director General of DICD and chairman of the conference. ’’It is our duty to protect this industry by complete financial transparency,’ he added

Real Estate Prices attract Investors in Dubai; Esbaitah: Dubai promises new boom in investments soon

Many real estate developers today are seeing glimpses of hope through the global financial crisis, as the real estate players that exist in the market today are the real players who knew how to manage their businesses in a time of crisis and made the right decisions to protect their investments from dissolving.Despite being a growing market, the property market in Dubai has suffered a lot from the recent economic climate, after achieving unprecedented growth levels regarding supply and demand, as well as high rent prices. Today, property prices are at their lowest levels, but Dubai is garnering the attention of numerous local and foreign investors who are looking to benefit from the decline in prices, the high quality of properties in the emirate, and its sound legislation and infrastructure.Speaking on the subject, Eng. Khalid Esbaitah, CEO and Managing Director of Al Mazaya Holding, said, "There are a number of factors that any developer considers when embarking on an investment in any region in the world, and perhaps the estimated revenues of particular investments is what drives investors to go forward with the investment or to draw back from it. However, market movement, plot prices, infrastructure and legislation frameworks are the main factors for the success or failure of an investment. Bearing this in mind, we can see that the market in Dubai has all the right factors to become a sought-after investment destination, and that it is preparing for a new and organized economic leap that will compensate for the slowdown period"."With large investments and top-notch projects, Dubai really has all the right elements to rejuvenate investment and attract both local and foreign investors. The correction being experienced by the Dubai markets is a natural thing, and it presents a golden opportunity for investors who know how to make the best use of it. As such, Dubai’s market today is really a place for investors," Esbaitah added.He went on to say that right now property prices in Dubai are at their lowest-ever levels, and that they may continue to decline over the summer period, but in a much less remarkable manner that over the past nine months. Therefore, the current period could be the perfect time for investment, because Dubai markets are moving towards stability, and prices are expected to rise again after suffering from a fairly long period of decline.Esbaitah noted that studies conducted by Al Mazaya Holding indicate that current economic conditions present long-term opportunities for real estate investors, especially with the many alternatives that are available to the investor, such as the quality and location of plots and Dubai’s ability to recover from the financial crisis more quickly than any other market in the world."We expect real estate activity to return to Dubai after the summer period, as investors are studying their investment options during this period to start their businesses after the summer holidays. Therefore, Q4 of 2009 will a promising period, as it will witness the return of real estate activities," he said.Esbaitah concluded by saying that his company is conducting a number of studies into the best way to take advantage of the current economic situation. Al Mazaya is also studying a number of investment opportunities, taking into consideration the right time and place to embark on an investment. The company is also preparing to implement a number of investment strategies and plans that will make use of the investment opportunities currently available in the Dubai property market. 

World’s largest independent actuarial and consulting firms, Milliman Inc., registers office at the DIFC to serve Middle East, Africa and South Asia

Milliman Inc., one of the world’s leading consulting and actuarial firms, announced that it has registered an office at the Dubai International Financial Centre (DIFC) to serve the Middle East, Africa and South Asia region.The American-based firm offers a broad range of actuarial services. It brings its expertise with the aim to assist regional financial institutions and insurance companies in providing innovative products that simultaneously manage both investment and longevity risk. HE Dr. Omar Bin Sulaiman, Governor of the DIFC, welcomed Milliman Inc to the DIFC and the region. “Milliman joins a long list of leading global institutions that have made the DIFC their home since we opened and we welcome them and offer all support to ensure their success in doing business in the region. “Africa, Middle East, the Gulf and the Subcontinent region is bubbling with energy and vibrancy despite the ongoing global crisis and is poised to come out of it sooner and in better shape. This is evident in the shift of global commerce towards the East. It is a good time to focus on this region and we are sure that with the global expertise that Milliman possesses, it will do excellently and add value to the region,” Dr. Omar added. Debo Ajayi, Managing Consultant and Director of Milliman in Dubai said: “Milliman’s wide range of talents and global experience are ideally suited to meeting client needs in the Middle East, Africa and South Asia. We will respond to the growing demand for customised solutions in the insurance and financial services areas.” “Financial institutions have for years been under stress because of the twin threats of volatile capital markets and uncertain longevity trends, and the recent global financial crisis has compounded the situation. Many firms are now taking a new approach to risk management by offering retirement savings products with built-in guarantees. The global expertise that Milliman has developed in guaranteed products and the sophisticated risk management systems and processes needed to manage them will become increasingly relevant as organisations in the Middle East look to enhance their retirement savings products,” he further said. Milliman hosted a 1-day seminar on investment guarantees on 26 May in Dubai. The event, titled ‘Investment Guarantees: Managing Risk in Challenging Markets’, looked at the current state of the industry, examined some of the lessons learned in the wake of the recent financial crisis, and discussed future trends. The seminar compared and contrasted financial risk management practices in North America, Asia, and Europe, and discussed the potential to apply these techniques in the Middle East. It also included an in-depth discussion of the global financial situation, an overview of promising risk management strategies, and the presentation of a case study highlighting the use of a capital guarantee, hedging, and a best-practices process to maximise portfolio performance. Speakers included Ken Mungan and Ghalid Bagus of Milliman’s Financial Risk Management practice from the Chicago office. For more information, please call +971 4 3289828 Or email: dubai@milliman.com

UAE showing signs of riding over global financial crisis

The UAE market has begun to show positive signs of riding over the international financial crisis thanks to a range of proactive preventive and confidence building measures taken by the government to cushion the economy, according H.E. Sheikha Lubna Bint Khalid Al Qasimi, Minister of Foreign Trade.

’’Positive preliminary indicators show that the UAE market has overcome the impact of the global financial meltdown thanks to early measures adopted by the government which have given a big boost to underpin confidence in the UAE economy,’’ Sheikha Lubna said during talks today with visiting Algerian Minister of Finance Karim Djoudi.

She said these measures had also boosted confidence in the UAE economy among local and foreign businessmen and investors.

The two ministers explored ways of enhancing bilateral cooperation in areas of trade and investment and stimulating private sectors in the two countries to establish joint ventures.

Hurdles facing UAE companies executing investment projects in Algeria were also discussed.

Sheikha Lubna stressed the importance of increasing trade exchange and investment given the fact that the UAE is the largest Arab investor in Algeria.

She cited trade, industry, agriculture and tourism as the most potential sectors for prospective joint investment cooperation.

For his part, the Algerian minister said his country was keen to strengthen relations with the UAE in trade and economy.

He affirmed the desire of the Algerian private sector to benefit from experience of UAE companies through establishing joint ventures in agriculture, tourism, animal wealth and services.

Dubai Islamic Bank Wins Best Sukuk Bank And UAE Country Award By Global Finance

Dubai Islamic Bank (DIB) announced today that it has won the overall Best Sukuk Bank Award and the UAE Country Award in Global Finance’s second global “World’s Best Islamic Financial Institutions” competition.

The winners were chosen among entries evaluated by Global Finance editors after extensive consultations with bankers, corporate finance executives and analysts throughout the world. The jury assessed objective criteria such as growth in assets, profitability, geographic reach, strategic relationships, new business development and innovation in products. Additional aspects included opinions of equity analysts, banking consultants and other industry experts.

“These prestigious accolades recognise DIB’s pioneering work in Sharia-compliant banking and underscore once more our leadership position in the Islamic financial sector,” said Abdullah Hamli, CEO, DIB. “As the world’s first Islamic bank, DIB is committed to providing our clients a wide range of innovative Islamic banking services. We are confident that our banking solutions will meet the evolving needs of our growing client base in the Middle East, Europe, Africa and South Asia regions.”

“Sharia-compliant finance is growing rapidly despite the global financial crisis,” said Joseph D. Giarraputo, Publisher of Global Finance. “The winners of this year’s awards are those banks that contributed to the growth of Islamic financing and successfully met their customers’ needs for Sharia-compliant products, while creating the foundation for continued fast growth in the future.”

Global Finance, which celebrates its 22nd anniversary in 2009, is the publication that speaks the language of finance to senior management at the world’s largest companies and to the bankers and money managers who serve them. Global Finance gives its 50,000 subscribers and 180,000 readers in more than 158 countries the guidance and market intelligence that is critical to operating successfully in this new and exciting environment.