https://arab.news/2u79h
DUBAI: The new law on incentivizing property investment funds will lead to a boost in foreign capital, according to Amira Sajwani, general manager of sales and development at Damac Group.
Dubai’s ruler Sheikh Mohammed bin Rashid Al-Maktoum enacted a new law on July 19 to promote the growth of real estate investment funds in Dubai.
As part of efforts to position the emirate as a global destination for investment in real estate, the law grants certain privileges to real estate investment funds, reported Emirates Media Agency, also known as WAM.
The law grants certain privileges to real estate investment funds.
There is also a dedicated committee created by the new law that identifies which areas and properties the funds may invest in.
Investopedia defines a real estate fund as a type of mutual fund that primarily invests in securities offered by public real estate companies.
On the other hand, a real estate investment trust invests directly in income-producing real estate and is traded like a stock.
Among those covered by the law are all real estate investment funds licensed and regulated by government authorities, private development zones and free zones, such as Dubai International Financial Center, WAM stated.
Also, investors will be entitled to benefits that will help them invest in the emirate’s real estate market.
So how will the new law benefit the country and real estate investors?
Husni Al-Bayari, D&B Properties chairman and founder, said the new law would encourage investors and real estate funds to enter the market while increasing transparency and governance.
Moreover, it will contribute to regulating Dubai’s private development and free zones, Al-Bayari said.
As a result, high-net-worth individuals are flocking to Dubai, and this legislation will open up new areas for personal and professional relocation, Al-Bayari commented.
The register is open to applicants with real estate assets of 180 million dirhams ($49 million) or more, WAM said.
Damac’s Sajwani said that “creating a register for property investment funds gives the added value of transparency which is always good to attract more foreign entities to invest here.”
As she pointed out, the new law follows a slew of recent economic and social reforms that have increased Dubai’s appeal.
There is also a dedicated committee created by the new law that identifies which areas and properties the funds may invest in, WAM stated.
Alexey Galtsev, founder and CEO of Realiste, a personal artificial intelligence firm on real estate investing, said removing liquidity and asset management risks should help real estate investment trusts attract 15 percent more investments and support liquidity and market growth.
Dubai Land Department, the real estate registrar, will also appoint an expert to appraise properties owned by the funds, WAM added.
With real estate as one of Dubai’s focus sectors, the move comes as the city ramps up efforts to attract foreign investors.
Galtsev also said the law supports significant funds in Dubai real estate and opens the UAE market to large investment capital infusions.
Al-Bayari concluded that the UAE has recently been recognized as the preferred place for millionaires to migrate. This initiative will further elevate Dubai to the top of the affluent investor’s list.
RIYADH: Egypt is in talks with regional and international banks as it ponders a loan of around $2.5 billion to relieve growing economic pressure, Bloomberg reported citing people with knowledge of the plans.
Government officials said they had no information on the issue, and the sources quoted by Bloomberg said that discussions may not result in a deal.
First Abu Dhabi Bank and Abu Dhabi Commercial Bank are leading the loan discussions and have invited other banks to participate, they added.
Two of the people said that the borrowing is expected to be priced at around 400 basis points over the three-month secured overnight financing rate.
Egypt is seeking to garner $41 billion to pay for its current account deficit and maturing debt by the end of 2023, Bloomberg said.
The African country needs to urgently secure more foreign currency in its $400 billion economy to plug gaping deficits.
The world’s largest wheat importer has been hit hard by the soaring oil and commodity prices, and by the loss of tourists from Russia and Ukraine, leading to pressure on the country and pushing it to seek International Monetary Fund assistance.
Egypt has also secured financing from the Gulf, with Saudi Arabia, the UAE and Qatar pledging more than $22 billion in deposits and investments in the struggling economy.
The Saudi Egyptian Investment Co., a company wholly owned by the Public Investment Fund, acquired minority stakes in four Egyptian companies for $1.3 billion earlier this week.
This deal comes as part of the Kingdom’s commitment to channel resources.
RIYADH: Dubai’s biggest listed developer, Emaar Properties, will acquire Dubai Creek Harbour from Dubai Holding for 7.5 billion dirhams ($2 billion).
The deal, to be paid equally in cash and shares of Emaar Properties, will make Dubai Holding the second largest shareholder of Emaar, the company said in a statement.
Emaar recorded sales of 4.2 billion dirhams in 2021 and 3.6 billion dirhams sales in Dubai Creek Harbour in the first half of 2022.
Located along the historic Dubai Creek waterfront, Dubai Creek Harbour has approximately 100 million sq. ft of future development which will provide future profit potential to Emaar, the statement said.
“We are pleased to announce the sale of Dubai Creek Harbour to Emaar, subject to finalisation,” a spokesperson of Dubai Holding said.
“We look forward to our investment in Emaar as a reference shareholder and the diversification benefits it offers, and we are confident that Dubai Creek Harbour will continue to reach greater heights and success,” the spokesperson said.
“We are determined to support the Government’s vision for sustainable urban development in Dubai while providing a redefined experience for residents and visitors,” a spokesperson of Emaar said.
Emaar Properties is a global property developer, with a land bank of 1.7 billion sq. ft. in the UAE and key international markets.
The developer has delivered over 86,200 residential units in Dubai and other global markets since 2002.
RIYADH: Saudi Industrial Services Co. is going to push ahead with its expansion plans despite seeing its profits plunge 93 percent in the first half of the year.
The firm’s CEO, Mohammed Al Mudarres, told Argaam that SISCO is continuing with its proposed strategy in acquisitions and expansion to achieve its strategic objectives for 2025 and 2026.
Al-Mudarres pointed out challenges in the port and logistics sector during the first half of the year, due to threats related to supply chains between China and Europe, rising shipping rates, and closures in China and shutdown of some plants.
While the firm pulled in just SR3.9 million in the first six months of 2022 compared to SR54.7 million during the same period the previous year, the second quarter of this year did see a rally in profits.
Gains over those three months stood at SR3.1 million, compared to SR0.8 million in the first quarter, driven by higher profitability at its subsidiary Kindasa Co. coupled with performance improvement from associate companies.
The firm is expected to achieve better results in the second half of 2022, on improved performance of the ports, logistics, water and other sectors, according to Al-Mudarres.
The top official indicated that customs duties and inflation in commodity prices were among the reasons that led to certain challenges faced by the import sector.
He concluded that this is a temporary period, as the market will become accustomed in the coming months and adapt to the current price rates.
SISCO declared a 4 percent interim dividend for 2022, as per its dividend policy.
RIYADH: Saudi Arabia’s human resources sector is worth just 0.4 percent of the international market despite the Kingdom being ranked third globally for attracting foreign labor.
Figures released by the Federation of Saudi Chambers show the HR market stands at just over SR6 billion ($1.6 billion).
The global HR market is estimated at about SR1.5 trillion.
The relatively small size of the sector has led the FSC to repeat its demand for financing institutions to provide help to the labor leasing arena by reviewing the components, market size and opportunities available.
The call came as the National Committee for Human Resources Companies revealed its own initiative to finance and install labor leasing services in the Saudi market for both the business sector and individuals.
The initiative aims to push banks and various financial institutions to provide financing products and installment services for leasing labor in the Saudi market.
Human resources companies reviewed studies that prove the clients’ need to finance labor leasing and installment services, and investment opportunities in light of the large size of the labor market in the Kingdom, Saudi Press Agency reported.
They pointed out that human resources companies have a good share of the labor market and provide various advanced services and products, including hourly rental.
They are present in all regions of the Kingdom, and have invested millions of riyals in advanced technologies and systems to manage their various operations, the human resources companies said.
LONDON: The founder of China’s Huobi Group, which runs one of the world’s largest cryptocurrency exchanges, is in talks with investors to sell his almost 60 percent stake in the exchange for over $1 billion, Bloomberg News reported on Friday.
Leon Li’s stake sale would value Huobi between $2 billion and $3 billion, and could be completed as soon as the end of the month, the report said.
Tron founder Justin Sun and Sam Bankman-Fried’s FTX are among those who have been in contact with Huobi regarding the proposed stock sale, the report added, citing people familiar with the matter.
A spokesperson for Huobi confirmed to Bloomberg that Li was engaging with several international institutions about the sale, but declined to offer specifics, while Tron’s Sun told the news agency that he hasn’t had any negotiations with Li about a sale.
Huobi Group, Tron and FTX did not immediately respond to Reuters requests for comment.
The Chinese group’s crypto exchange stopped new registrations of accounts by mainland China customers last year after Beijing introduced a blanket ban on all cryptocurrency trading and mining in the country.
Meanwhile, crypto players globally also ran into difficulties following a sharp selloff in markets that started in May.
The market conditions reflected in the results of rival exchange Coinbase Global, which reported a larger-than-expected quarterly loss this week as investors worried by this year’s rout in risky assets shied away from trading in cryptocurrencies.
