Infrastructure

Already known for its one-of-a-kind developments that include the world’s tallest tower (Burj Dubai) and clusters of artificial islands in the shape of palm trees and the world map (The Palm and The World), Dubai is certainly not planning to stop there, as Sheikh Mohammed’s ‘Vision 2015’ plan shows..

Building boom continues with more focus on urban planning, environment

Massive investment in infrastructure

Massive investment in new infrastructure over the past decade is a key reason for Dubai’s economic success story, and the emirate will continue to target infrastructure between now and 2015. The government has earmarked AED 15.5 billion for a new mass-transit system (Dubai Metro), which is expected to carry around 1.2 million passengers each day when it is completed in 2009, and more than AED 6 billion for additional improvements to the road network.

Other infrastructure initiatives include significant expansion of Dubai’s port facilities, cruise port and Dubai International Airport as well as the construction of the colossal Al Maktoum International Airport near Jebel Ali, which will serve Dubai World Central, a planned city with sector-specific free zones whose infrastructure alone is budgeted at USD 33 billion. The new airport will be the world’s biggest passenger and cargo hub, able to handle 120 million passengers and more than 12 million tons of cargo annually by 2015. Jebel Ali Downtown is another ambitious project set to be coordinated with the new airport. .

Foreign-investment opportunities

Infrastructure projects like these mean that even more foreign investment opportunities are opening up in Dubai. Sultan Bin Saeed Al Mansouri, Minister of Governmental Sector Development for the United Arab Emirates and Chairman of Dubai’s National Transport Authority, says, “From both the political and economic points of view, American investment here could enhance the United States’ reputation as well as have great potential. We see significant investment potential for American companies in aircraft, support services, ground-handling services, infrastructure, human resources, and aviation-related technologies, as well as investment in projects related to Dubai’s new international airport.”

New ‘green’ building standards

While bringing ambitious projects like the new airport to fruition, Dubai has taken a ‘greener’ approach to development, in line with the overall theme of ‘Vision 2015’ to focus on sustainable growth. As of January 1, 2008, all new construction in Dubai must apply the highest ‘green’ building standards, according to a 2007 decree by Sheikh Mohammed. Dubai is the first country in the Middle East and one of the first in the world to create such legislation, which aims to ensure that new buildings are as energy-efficient and non-polluting as possible. Highlighting his focus on the environment, in April this year Sheikh Mohammed launched Mohammed bin Rashid Gardens, an AED 200 billion project that will cover around 880 million sq ft, of which 73 percent will be green space.

In fact, ‘Vision 2015’ groups infrastructure with land and the environment, reflecting the government’s recognition of the need to protect Dubai’s fragile and limited natural resources and to devise strategies for the best use of its limited land area.

Dubai continues to prove that it can achieve seemingly impossible goals. The emirate’s picturesque shoreline along the Gulf was limited, so Dubai created not only The Palm and The World but also Dubai Waterfront, a man-made island that contains 250 upscale master-planned communities.

Other new landmarks in downtown Dubai include the USD 271 million Dubai Lifestyle City and Burj al Arab, a ‘seven-star’ hotel tower on a man-made island that offers helicopter service, an underwater restaurant, and a fleet of Rolls-Royces for guests. In the Jumeirah Village district, Hydra Properties, headed by CEO Sulaiman Al Fahim, has conceived Hydra Twin Towers, which has its own community center, cycling and jogging trails, private gardens, schools, clinics, and more – an ultramodern, serene world-within-a-world. And these developments are just the beginning.

Business Bay region’s new business capital

New mega-projects in the works include Business Bay, designed to be the region’s new business capital. It is being built at the back of Dubai Creek, which is being extended. Since Ras Al Khor Wildlife Sanctuary lies near Business Bay, stringent measures have been adopted to ensure that the wildlife sanctuary is not harmed by new construction.

Other key projects are Emaar Properties’ Dubai Marina, an upscale city-within-a-city on the water that is the world’s biggest waterfront development to date (bigger than Manhattan), and Tatweer’s Dubailand, a USD 64 billion, 3 billion sq ft project that is designed to serve as the cornerstone of Dubai’s dynamic tourism sector. Dubailand will include dozens of major developments, including Dubai Sports City, a DreamWorks theme park and other theme parks, eco-tourism offerings, the 10-million-sq-ft Mall of Arabia with more than 1,000 shops, and much, much more.

As Dubailand’s CEO, Mohammed Al Habbai, explains, “We are building destination tourism in Dubai.” A graduate of the University of West Virginia, he welcomes American investors to Dubailand, which will offer timeshare properties as well as interests in other initiatives. “Dubailand is the most ambitious leisure and tourism destination in the world, and we want it to be one of the top five destinations on the planet,” he concludes.

Dubai Holding continues to launch mega-projects

Dubai Holding, created in 2004 to consolidate the emirate’s current and future mega-projects, now includes 20 companies in many sectors, and its projects include Dubailand, Burj Al Arab, Dubai Internet City and Dubai Media City, among many others. It also includes Sama Dubai, whose name means ‘reaching for the sky’ in Arabic. Appropriately, Sama Dubai is responsible for some of the emirate’s most distinctive mixed-use towers in the Dubai Lagoon and Dubai Towers developments as well as other projects throughout the region. Limitless, Dubai World’s global real estate division, is headed by CEO Saeed Ahmed Saeed, who says, “We are already active throughout the Middle East, including in Dubai where Jebel Ali Downtown was our first project, as well as in Southeast Asia.”

Setting the bar even higher

Initiatives like these would be more than most countries could handle, but Dubai is setting its own bar even higher. Bawadi, by Tatweer, is a case in point. Billed as the biggest hospitality, shopping and entertainment destination in the world, Bawadi is also going to be walkable from end to end and an example of the potential of ‘green’ and sustainable design. Bawadi will be stretched along a five-mile-long boulevard and will have 51 hotels, including the landmark Desert Gate Hotels and Towers and the centerpiece hotel, Asia-Asia, which will have 6,500 rooms (1,400 rated five-star and 5,100 rated four-star).

Bawadi will also have extensive retail space as well as many entertainment options, a convention center and more. CEO Arif Mubarak explains, “Bawadi will be the driver of Dubai’s tourism and hospitality in line with Sheikh Mohammed’s Vision 2015 strategy. American architects helped design Bawadi and we want American investors to be part of this project.”

Another project that reflects not only Dubai’s ambitious approach to development but also its focus on high quality and core values is the Khor Dubai cultural venture on Dubai Creek that was recently launched by Sheikh Mohammed. It will include dozens of cultural venues designed to help to make Dubai a global cultural hub, as well as many parks and gardens. Visitors and locals will be able to stroll along the creek all the way to Business Bay while checking out exceptional cultural attractions.

Property market still going strong

Meanwhile Dubai’s property market, which, thanks to recent legislation, includes many properties open to foreign buyers, continues to attract international investment in new projects. So many buyers have been opting to secure space through sometimes-risky off-plan deals that the government has decreed that special escrow accounts for property investments must be made available to protect investors.
Factors driving the continuing expansion of Dubai’s real-estate market include the emirate’s growing role as an international business hub, along with its exceptional infrastructure, high salaries for expatriates, relatively low costs, sunny weather, international culture, high quality of life, thriving tourism sector, and business-friendly tax regime.

Dubai’s property market also offers exceptional returns. Rents are skyrocketing – it is currently around 40 percent cheaper to buy than to rent in Dubai – and rental yields of up to 10 percent are achievable. Meanwhile, prices for properties in Dubai are appreciating steadily at the rate of around 15 percent per annum on average, and up to 30 percent per year in some developments.

Potential buyers have many options in Dubai. New mega-projects are being announced daily and construction cranes seem a permanent feature of the skyline, which is expected to include at least six ‘super-towers’ in the future (more than in any other city), each with more than 100 habitable floors.
Home buyers can also opt for serviced apartments in multi-starred hotel and resort developments, or opulent waterside villas in upscale projects like The Palm and The World, or completely equipped luxury condominiums in Dubai Pearl.

And these are just a few of the options already on hand or being built. Dynamic Dubai’s incredible building boom is obviously still on track.

Dubai Pearl opts for only the best

In another effort to make the most of its waterside setting, Dubai launched the almost unbelievably ambitious Dubai Pearl development, an integrated city for 20,000 people that features distinctive design, five-star hotels, premium office space, a vast performing-arts theater, air-conditioned pedestrian walkways, trendy boutiques and restaurants, and the ultimate in upscale residential offerings – some apartments will have private swimming pools and gardens – along with many other amenities.

Dubai Pearl’s chairman, Abdul Majid Al Fahim, is determined that Dubai Pearl will have only the best of everything, including its cutting-edge information-technology network designed by Technoworld. He says, “As real-estate innovators, we are keen to develop Dubai Pearl into an integrated, mixed use, sustainable development with all key components located within easy access of each other.” The project will require investment of around AED 14 billion to be rolled out in phases.