Dubai Properties Unveils Robust 2008 Roadmap

Real Estate Master Developer Dubai Properties announced today it will launch and handover approximately 5,000 commercial, residential, and retail units from across its diverse portfolio of projects during 2008. 

In addition, Dubai Properties will be opening 100 outlets at The Walk at Jumeirah Beach Residence by April 2008. Some of the initial outlets to will include renowned brands such as Starbucks, Subway, Mothercare, Verri, Fat Face, Butlers, Boots, Damas, Jumbo Electronic, Al Rasasi, Giordano, Tips & Toes, and Bata. Over 300 additional outlets are scheduled to be open by the end of June.

Mohamed Binbrek, Chief Executive Officer, said: “Apart from developing unique communities, Dubai Properties is committed to ensuring the timely release of its completed units. Following the enormous success of 2007, we are looking forward to a year of massive business expansion and project handovers.

“The handover of residential and commercial units, as well as the launch of new projects, will significantly meet the emirate’s escalating demand. We are delighted investors and end users find high value in the upscale amenities and world class services we consistently deliver across our projects.”

Referring to the leasing projects handled by Dubai Properties, Mr. Binbrek added: “Meanwhile DP is leasing 2568 out of the 2611 units available at different areas in Dubai including JBR, Cordoba Villas, Dubai HealthCare City, Al Qouz Community Housing and DP staff accommodation.

The year 2008 will witness another milestone for DP in adding 5028 flats and villas to its leasing portfolio in Mirdiff areas, additional units in Executive Towers, the Office Park Building and Al Qouz Community Housing. This will bring the total number of units available for leasing at Dubai Properties to 7600 units, added Mr. Binbrek.

In 2007, the Jumeirah Beach Residence became the first freehold Dubai Properties’ project to be completed, when approximately 6,500 apartments across 36 residential towers were handed over. More than 2,000 families have moved into the apartments since then.

The successful JBR handover was followed by the end-of-year announcement of Mudon, the unique AED 40 billion community that is being developed in the heart of Dubailand on 73 million square feet. Due for completion in 2012, the project is currently the largest development by Dubai Properties to date. It will incorporate five historic cities – Baghdad, Beirut, Damascus, Cairo, and Marrakech – within one large integrated metropolis.

Dubai Properties’ diverse portfolio represents the highest quality of real estate in the region. Mixed-use master developments such as Business Bay and Mudon have been recognized globally for their ambitious charter and unique characteristics. The distinctive retail portfolio is supported by residential developments that meet the need of Dubai’s growing economy and resident population.

Takaful - insurance with an Islamic perspective

Earlier this week, i wrote a newsarticle about the Dubai Islamic Investment Group who had acquired a 51% controlling stake in the Kuwait-based Al Fajer Retakaful Insurance Company KSCC. The takaful insurances made me curious, which brought me to this article.

History

Takaful is an Arabic word meaning ‘guarenteeing each other’ or ‘joint guarentee’. Muslim jurists acknowledge that the basis of shared responsibility in the system of “aquila” as practised between Muslims of Mecca and Medina laid the foundation of mutual insurance. Islamic insurance was established in the early second century of the Islamic era when Muslim Arabs expanding trade into Asia mutually agreed to contribute to a fund to cover anyone in the group that incurred mishaps or robberies along the numerous sea voyages (marine insurance).

The fundamentals of insurances are now based on the sayings of Prophet Mohammed and by these means under Islamic Law.

Principles

The principles of Takaful insurances are as follows:

• Policyholders co-operate among themselves for their common good.
• Every policyholder pays his subscription to help those that need assistance.
• Losses are divided and liabilities spread according to the community pooling system.
• Uncertainty is eliminated in respect of subscription and compensation.
• It does not derive advantage at the cost of others.

Theoretically, Takaful is perceived as cooperative insurance, where members contribute a certain sum of money to a common pool. The purpose of this system is not profits but to uphold the principle of “bear ye one anothers burden.” Commercial insurance is strictly not allowed for Muslim as agreed upon by most contemporary scholars because it contains the following elements: Al-Gharar (Uncertainty),  Al-Maisir (Gambling) and Riba (Interest).

Although, the European Council for Fatwa And Research modified that rule a little. It said: “Commercial insurance is originally haram (unlawful red.) as agreed upon by most contemporary scholars. It is well known that in most non-Islamic countries there are cooperative and mutual insurance companies. There is no harm from the Shari`ah point of view to participate in these services. So, it is unlawful for a Muslim living in a country where there is such a cooperative insurance company to make an agreement with a commercial insurance company. But, if a cooperative insurance company is not found one may enter into a contract with a commercial insurance company only by way of necessity. If a person is forced by law to insurance or by way of need, it is obligatory for him to be content with the minimum proportion of insurance that covers his need or to the minimum of such transaction he’s being forced to carry out.” 

The Takaful Models

- Mudharabah model (profit and loss sharing) This is a contract between capital providers with management, where any profi t is shared according to ratio or percentage agreed by both parties but any losses are borne entirely by the capital provider. In practice, participants provide capital to the Takaful operator. 
- Musharakah model (joint venture) Both parties provide capital and/or management. Profi t is split either based on capital or upon negotiation, and any loss is distributed in proportion to capital contributions. 
- Kafalah model (surety) A guarantor to become the surety in the event the debtor fails to honour his obligation. This type of contract can be used for the development of the Takaful scheme for bonds products. 
-  Wakalah model (agency) The principal appoints and authorises someone to act on his behalf. The authorisation could be either specific or general. The Wakeel (agent) could then charge a fee to the principal. This model is suitable for most Takaful products including products for corporate risks such as a ‘Rent-a-Captive’ concept. 
- Ju’alah model (commission) Similar to the Wakalah contract except that the payment to the agent is measured on his output and performance. This contract could be used to develop distribution channels for Takaful. The most important element of a Takaful model is that there must be a subject matter of contract upon which contracting parties mutually agree by an ijab (proposal) and a qabul (acceptance).

(Sources: ICMIF Takaful, The Actuary, Wikipedia)

Would you like to modify this article or just give your reaction? Please, feel free to post a comment.

Dubai Mercantile Exchange achieves new records

The Dubai Mercantile Exchange (DME) has a strong start of 2008 with the setting of a new monthly volume record and achieving the highest level of open interest in its benchmark Oman Crude Oil Futures Contract since the launch of the Exchange in June of last year. The DME’s Oman Crude Oil Futures Contract traded a record total of 42,903 contracts during January, surpassing the previous monthly volume high of 42,568 set during November’s trading.

Another new record. Open interest on the DME at the close of January trading stood at 13,773, surpassing by 2,713 contracts the previous monthly high of 11,060 recorded in November 2007. Open interest is the number of futures contracts entered into but not yet liquidated by an offsetting transaction or by delivery, and is regarded as a leading indicator of success by the industry.

The Dubai Mercantile Exchange Limited, a joint venture between Tatweer, a member of Dubai Holding, the New York Mercantile Exchange, Inc. (NYMEX) and the Oman Investment Fund (OIF) is the premier international energy futures and commodities exchange in the Middle East, uniquely positioned to provide price transparency and market liquidity for crude oil from the world’s foremost oil producing and exporting region.

The Exchange has developed and lists the Oman Crude Oil Futures Contract, addressing the growing market need for price discovery of Middle East Sour Crude Oil while simultaneously bridging the time-zone gap between Europe and Asia and North America. Furthermore, the establishment of the DME is also intended to strengthen Dubai’s ties with the international finance and commodities trading communities.

Dubai becomes Fashion Capital

From February 10 to 12, Dubai becomes the Fashion Capital of the world during the ‘Dubai Fashion 2008′, which will be held at the Madinat Jumeirah, Arena Ballroom. This season’s hottest trends will be exposed by leading fashion houses including Christian Lacroix, Barbara Bui and Stephan Rolland.

The event is being held under the patronage of HH Sheikha Hind bint Maktoum bin Juma Al Maktoum, wife of HH Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, and is organised by Dubai Shopping Festival and BurJuman, the region’s most luxurious shopping mall.

Last year, the Dubai International Fashion Week was already organised.

Burj Dubai update

Today, Emaar Properties PJSC realeased a construction update about the Burj Dubai, the centrepiece of their flagship project, the AED 73 billion (US$20 billion) Downtown Burj Dubai. The Burj Dubai’s height is now 604,9m and construction is taken place at level 159. With that height, the Burj Dubai is taller than Taipei 101 (508 metres) in Taiwan and CN Tower (553.33 metres) in Toronto, Canada.

More than 5,000 consultants and skilled professional workers are employed on-site at the tower. However, there has been points of interrogation in the past about living standards of Dubai’s loanworkers. Journalists declared that construction workers work long days with no day of rest, earning meager wages (Dubai doesn’t have a minimum wage system) that may be withheld or unpaid altogether.

Dredging company Van Oord completes The World

Dredging and marine contractor Van Oord has completed the prestigious land reclamation project The World in the emirate of Dubai. The World is a group of 300 artificial islands four km off the coast of Dubai that have been shaped in the form of the continents. The project covers a surface area of 9 x 7 km and was completed in the record time of little more than four years. The islands can now provide the setting for hotels, apartments and villas. This is the next immense project, visible from space.

Project execution commenced in October 2003. Fifteen trailing suction hopper dredgers have reclaimed a total of 320 million m3 of sand from the sea to form the islands. For comparison purposes: that is the equivalent of a 2 m wide, 4 m high Chinese Wall that stretches around the world. In addition, 34 million tonnes of stone have been used to construct the longest breakwater in the world, a 27 km long structure protecting the islands from the sea. That is four times the amount of stone used to build the Oosterscheldt storm surge barrier.

For a number of years Van Oord will continue to be closely involved in the remainder of this project. According to Hamza Mustaffa, the managing director of Nakheel, Van Oord‘s client, ‘We intend to continue our successful collaboration in the years ahead.’ Van Oord’s work will include compacting the subsoil and building quay walls.

Van Oord is working on several marine construction projects in Dubai. Following the first palm island, the much-discussed Palm Jumeirah, The World was the next extraordinary land reclamation project that Van Oord completed in Dubai. Palm Deira, a colossal islands project ten times the size of Palm Jumeirah, is still under construction and will be completed in 2014-2015.

Dubai Islamic Investment Group buys 51% stake

The Dubai Islamic Investment Group (DIIG) announced that it has acquired a 51 per cent controlling stake in the Kuwait-based Al Fajer Retakaful Insurance Company KSCC. The DIIG is part of the leading diversified financial company of Dubai Holding, the Dubai Group.

Dubai Islamic Investment Group’s investment in Al Fajer Re marks Dubai Group’s foray into the retakaful sector as a first step to drive the segment globally. Dubai Islamic Investment Group will bring extensive experience from its current investment portfolio owning stakes in Bank Islam Malaysia, the largest and oldest Islamic Bank in Malaysia, National Bonds UAE, the National Shariah-compliant Saving scheme and the strength of its sister companies under Dubai Group in Islamic finance, including takaful and retakaful products. 

Takaful is an Arabic word meaning guaranteeing each other or joint guarantee. That means that each participant that needs protection (via insurance) must be present with the sincere intention to donate to other participants faced with difficulties. Therefore, Islamic insurance exists where each participant contributes into a fund that is used to support one another with each participant contributing sufficient amounts to cover expected claims.

Céline Dion plans Dubai concert

The Canadian diva Céline Dion will be rocking Dubai on March 5th, 2008. The concert is expecting a quick sell-out and is planned at the Four Season’s Golf Club, Dubai Festival City. The concert is part of Céline Dion’s world tour which will be covering all corners of the globe, making stops in Africa, the Middle East, Japan, Korea, China, Australia, New Zealand, Europe and the America’s, including 25 countries and in over 100 cities. Tickets for her first Dubai concert are available via Showbizme and, starting half February, in-store.

Céline Dion is the biggest selling female artist of all time with 175 million records sold worldwide.

Tiger Woods wins Dubai Dessert Classic

Today, the Dubai Dessert Classic ended with a stunning performance from American golfer Tiger Woods. The world’s number one sunk a 25 foot birdie putt on the last to edge home ahead of Ernie Els. The South African started the day with a one-stroke lead over defending champion Henrik Stenson.

Woods produced a grandstand finish to equal the best final round comeback win in the tournament’s history. By doing so, Woods won his fifth straight tournament.

Mulberry Mansions project launched

Al Fara’a Properties, the flagship of Al Fara’a Construction & Industrial Group launched there Mulberry Mansions project today. The 95 million AED project is part of a total 6,5 billion AED which will be invested this year by the leading company.

The Mulberry Mansions are luxurious residential developments, which contains 23 town homes within Jumeirah Village. Each luxurious Victorian-styled two-storey townhouse will include 4 bedrooms, a private two-car garage, a terrace, a balcony, maid’s room with separate access, and a small private garden.

Previously, Al Fara’a announced her ‘Le Grand Chateau’ (see picture) and ‘Manhattan Luxury Apartements’ projects, who are also located in the Village and expected to be ready for delivery in the third quarter of 2009. Both projects are sold out.

‘After the successful launch of our previous projects, ‘Le Grand Chateau’ and ‘Manhattan Luxury Apartments’, which has been well-appreciated by our customers as proven by the outstanding sales performance both has achieved, we are confident that our latest project will set new industry standards in terms of creativity and style, thereby reinforcing our leading position in the UAE market. The Mulberry Mansions project marks a successful start of the year for the Group, as we look forward to the launch of more projects within the first quarter of 2008,’ said Al Fara’a Contruction chairman J.R. Gangaramani.

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