Until the northern emirates have a reliable infrastructure, their economic fortunes will rise and fall with those of their powerful neighbour Dubai – something they are understandably keen to change.


So the announcement in October that the UAE federal government is pressing ahead with plans for a railway linking all seven emirates is good news. The AED30bn Union Railway will make Ajman, Fujairah, Ras al-Khaimah, Sharjah and Umm al-Quwain more attractive to investors.

The northern emirates are already marketed as a cheaper base for industries and logistics companies, but the railway could be the catalyst for large-scale development.

There are signs that private investors are recognising the emirates’ potential. Local port management company Gulftainer is building two ‘logistics cities’ on the outskirts of urban Sharjah to support its shipping operations at Khorfakkan and Sharjah container terminals.

Despite an economic downturn that has forced logistics companies worldwide to adjust to lower volumes, Gulftainer says it has found tenants for up to 80 per cent of the new storage space.

The northern emirates now have to build on this investor interest and provide the infrastructure the region desperately needs to realise its economic potential.

The UAE has plans to build Dh139 million worth water desalination plant in Ajman, one of the 7 emirates, as the emirate has witnessed delays in real estate projects because of shortages of water and electricity. The Federal Electricity and Water Authority (FEWA) have signed a contract with a consortium of UAE-based Tecton Engineering and Aqua Engineering of Austria to build the plant. The plant is located in the Al-Zawrah area and will have a capacity to produce 7 million imperial gallons per day (MIGD) of water.

S. Lakshmanan, MD, Tecton, said, "Ajman requires 18 MIGD of water currently. There will be a huge growth in consumption when buildings and towers under construction are completed in the next five years."

Ajman has two operating desalination plans of 6 MIGD capacity, one of which was built by the Tecton-Aqua consortium a year ago in Al-Zawrah, while the remaining water comes from underground sources. For the new project, the consortium's work includes design, manufacture, supply, construction and commissioning of the plant on a turnkey basis. Ajman has faced increasing water and power shortages due to a rapid increase in construction activity due to UAE-wide real estate boom.

Eight companies have bid for a contract to build two desalination plants in Ajman.

They are Germany's Aqua Engineering, the US' Aquatech, the UK's Acwa, Spain's Cadagua, Dubai-based Veolia Water Systems Emirates, Envicon, and Arco General Contracting, both UAE companies. The local Concorde-Corodex also bid, but the client disqualified it.

The successful bidder will build a greenfield 7 million gallon-a-day (g/d) plant and relocate a 3 million-g/d plant from Fujairah to Ajman.

Both plants will use reverse osmosis technology.

A team of Aqua Engineering and the Ajman-based Tecton Engineering & Construction built the existing 3 million-g/d plant in Fujairah. The consortium won the project in 2004.
The Federal Electricity & Water Authority is the client.

More than 300,000 people will be added to the UAE population this year to record the highest growth of 6.3 per cent in five years and Dubai would likely emerge as the fastest growing emirate, official figures show. The rise rebuffs reports that the global financial turbulence has triggered a mass exodus of expatriates out of the country, mainly Dubai.

From 4.75 million in mid 2008, the UAE's population is projected to increase to 5.066 million in mid 2009, showed the figures by the Ministry of Economy. Foreigners accounted for the bulk of the increase as they are forecast to grow by around 270,000 to 4.143 million from 3.873 million in the same period.

"The UAE still has one of the highest population growth rates in the world and last year's rate was more than double the average global growth," an Abu Dhabi-based economist said. "The estimates of this year's population show that all those reports about a mass migration are not true."

This year's projected growth of 6.3 per cent is the highest in five years, with the rate standing at an average 6.1 per cent during that period. The figures showed Dubai is expected to record the highest growth this year of 7.8 per cent to 1.722 million from 1.596 million. The high rate will allow the emirate to widen the previously closing population gap with Abu Dhabi, whose population will grow by around 4.2 per cent to 1.628 million this year from 1.559 million in mid 2008. Sharjah is projected to have the second-highest growth rate of 7.5 per cent and maintain its position as the third-largest populated emirate in the UAE. Growth was estimated 6.2 per cent in Fujairah, around 5.6 per cent in Umm Al Quwain, 5.4 per cent in Ajman and 4.3 per cent in Ras Al Khaimah. The figures showed UAE nationals are projected to grow by around 3.4 per cent or 31,000 this year, while expatriates would surge by 6.9 per cent.

A breakdown showed the country had around 3.286 million males and 1.479 million females in mid 2008 and their number is forecast to increase to 3.504 million and 1.562 million respectively by mid 2009. The report also showed the 25-29 year age group was the largest in the UAE in mid 2008, standing at 777,186. It was followed by the 30-34 age group, which was estimated at 754,289 and 35-39 group of 588,505. Despite the rapid growth in its population, the UAE has maintained its position as one of the wealthiest nations in terms of GDP capita income, which was estimated at 195,000 at the end of 2008, second only to Qatar in the Arab World.

Figures showed the per capita income has recorded its highest growth rates over the past six years mainly because of a surge in the oil income and expansion in non-hydrocarbon sectors.

Abu Dhabi: Owners of properties and residential units will be able to enter the UAE on a multi-trip entry visa that allows them to stay up to six months. The move is line with a ministerial resolution issued by Lieutenant General Shaikh Saif Bin Zayed Al Nahyan, Interior Minister, with the aim of enhancing the local economic environment and providing all fundamentals that help ensure economic growth and prosperity in the country. Under the resolution, the multi-entry permit can be renewed under certain conditions.

The resolutions is part of the UAE government efforts to introduce adequate legislations that stimulate and boost the domestic economic environment and provide all factors that will ensure highest rates of growth and prosperity as per the vision of the prudent leadership and its continuous directives to improve and upgrade procedural formalities and frameworks to satisfy demands of local markets and serve public interest.

The move also underlines the government commitment to serve interests of all persons who view the country as an oasis of stability and peace, therefore possessing properties in it.

By allowing those persons to bring in their wives and children, the government shows its keenness to ensure family stability to them.

The new resolution adds a new paragraph to Article 33 of the executive regulations of the entry and residency law for entry and residency of foreigners.

It reads: "Owners of built-in properties can stay for six months from the date of entry into the country. On the expiry of this period, the owner pledges to depart for his home country or any of the GCC countries. He will only be allowed to enter the country again after meeting the required conditions".

Another new article, number 34, will be incorporated into the by-law stipulating that the owner should submit a multi-trip entry visa in regards to the property as per the following conditions.

The property should be built-in and this case doesn't include owners of vacant lands. The owner should obtain a title of the property from the property registration authority in the emirate. The unit, be a house or an apartment, should be wholly owned by the concerned person.

The same article stipulates that the value of the unit should not be less than Dh 1 million. The unit should be fit for accommodation and for members of the family. The departments of naturalisation and residency will scrutinise this point.

The article allows the owner to include in the visa application his spouse and children and attaches an insurance cover (for him, his wife and children) valid for the limit of the stay in the country.

Article 34 stipulates that owner should have a fixed income of not less than Dh 10,000 or its equivalent in foreign currencies whether inside or outside the country though the visa doesn't give the owner of the property the right to work inside the country.

In case these terms are not met, the permit shall be null and void. The resolution will take effect from the date of its issuance, and is to be published in the official gazette.

The Federal Electricity and Water Authority (Fewa) announced the setting up of a new water desalination plant in Ras Al Khaima with a capacity to produce 10 million gallons of drinking water daily. It will cover all the demand for water in the emirate for years to come.

Fewa also announced the setting up of two desalination plants in Ajmanm, each with similar capacity as that of the Ras Al Khaimah plant. After the commissioning of the Ajman plants, the water problem of the emirate will also be met.

Mohammad Mohammad Saleh, Fewa's Director General said work on the Ras Al Khaima plant and the first Ajman plant has already started.

He added that the Ras Al Khaimah plant wil be operational during 2011, whereas the first Ajman plant will be operational later this year and the second one will be ready and operational by the beginning of 2011. He added that the total daily capacity of each of the three plants will be 10 million gallons of drinking water. "This is a major project that will meet the needs of the two emirates," he said.

Sources

Saleh highlighted the importance of setting up such desalination plants all over the UAE to increase the available drinking water sources in the various emirates. He said the Fewa has been woring hard to reduce salinity in drinking water, adding that it has recently decided to reduce the use of underground water in producing potable water.

He said that Fewa examines the drinking water that is produced by desalination plants in the country and ensures that only the best possible quality of water reaches consumers' homes. Saleh said that the current production of water should have been enough to meet all the local demands.

However, he blamed the shortage in some emirates to the misuse of water and urged the people not to waste water.

Dubai: Ras Al Khaimah Minerals & Metals Investments (RMMI) will begin supplying coal from Indonesia to power the UAE's first fully coal-fired power plant in Ras Al Khaimah in two years. This should help to solve a potential power shortage in the northern emirates - where hundreds of new towers would host thousands of families in new neighbourhoods.

RMMI is involved in three major mining projects in Indonesia, Armenia and Congo with investments totalling $1 billion (Dh3.67 billion). The projects will help the emirate to secure long-term energy supplies in the coming years, while the excess capacities will help other emirates.

"Initially, we will supply five million tons of coal to the Government of Ras Al Khaimah for the new power plant," Madhu Koneru, managing director of RMMI and vice-chairman of Middle East Coal Private Limited (MEC), a Special Purpose Vehicle (SPV) of RAK Investment Authority, told Gulf News. The strong economic growth in the northern emirates has accelerated the demand for power over the last few years. The fate of a number of projects in Ajman, Umm Al Quwain and Ras Al Khaimah would depend on steady supply of power.

Al Salam City - one of the largest master-planned project - has been held back due to a dispute on potential power supply to the project. "We are also looking at supplying excess production to India and Japan - the two countries in need for energy. In future, we could supply more coal to utilities ventures if more coal-powered power plants are developed in the UAE," Koneru said.

The Government of Ras Al Khaimah yesterday said it has been formally awarded a licence for the procurement, construction and operation of a special purpose rail network to extract and transport coal from Indonesia's East Kalimantan. The licence was granted by the Regency of East Kutai in Indonesia to PT Trans Kutai Kencana, an Indonesian SPV of RMMI. PT Trans Kutai Kencana is the vehicle for a joint venture between PT Kutai Timur Investama, the investment authority of East Kutai Regency and MEC. The commitment to invest into East Kutai from the Government of RAK was announced earlier this month during the signing of a government-to-government socio-economic agreement between RAK and East Kalimantan Province in Indonesia. The signing was witnessed by Shaikh Saud Bin Saqr Al Qasimi, Crown Prince and Deputy Ruler of RAK, and Indonesian President Susilo Bambang Yudhoyono at the World Islamic Economic Forum in Jakarta on March 3.

"East Kalimantan is the largest producer and supplier of thermal coal to both domestic and international markets. The planned infrastructure investments will enable RAK to maintain a high level of cost management and therefore stabilise prices of energy resources in the long-run as well by facilitating economical coal transportation from the resource-rich hinterland of East Kutai Regency in a scalable and efficient manner," Koneru said.

The first phase of the development programme will involve the commissioning of a 17 million metric tonnes per annum coal transportation and handling facility by 2012, while the civil and track work will be completed for 60 million tonnes annually. Global engineering firm ARUP has completed the feasibility study and the engineering design for the 150-kilometre railway line that will connect the district of Muara Wahau to the East Kutai coast in East Kalimantan. The railway is designed to enable a speedy and cost-effective transport of the coal, mined from remote, inaccessible interiors to the coal-loading jetty for easy movement domestically and through to international markets.

"We are going to start talking to contractors in April to construct the railway on a possible built-operate-transfer basis," Koneru said. Construction is estimated to be completed in 30 months. Parallel activities for the construction of ancillary infrastructure is also currently in the pipeline.

Abu Dhabi: The trans-emirates rail network will not only ease traffic congestion, but also reduce the cost of road maintenance and other projects. The network, which would see a double track rail service built from Ruwais in Abu Dhabi to Fujairah, was approved by the Ministerial Council for Services, WAM said on Sunday.

The council chaired by Shaikh Mansour Bin Zayed Al Nahyan, Minister of Presidential Affairs, passed a federal law setting up the Union Railways Company, whose major business will be rail transportation in the country. Tenders for the project will be offered by 2015, Shaikh Hamdan Bin Mubarak Al Nahyan, Minister of Public Works, has said recently. Details of the cost of the network have yet to be released - but some sources said the figure could reach more than $3billion (Dh11b). It will be done in two phases:

The first phase of the project will focus mainly on creating an industrial railway, which will take 5 years to complete.
The second phase will be a passenger rail line that links all seven emirates.

When the project is completed, there would be around 1,000 km of track running from the coat to the Saudi border. Ministry of Public Works must look at ways to ease traffic congestion on Dubai-Sharjah road by building more roads and fast-tracking the trans-emirates rail network, demanded members of the Federal National Council (FNC) recently. Train service will help to ease traffic flow as it would reduce the number of cars on the road, said the lawmakers. Roads in the northern emirates are so crowded that the problem has become unbearable, they added. Shaikh Hamdan agreed proposed railway would not only ease traffic congestion, but also reduce the cost of road maintenance and other projects. The minister said Dubai's metro system is not connected to the national rail network.

"Studies for the trans-Emirates rail network has been completed and a body has been created to make policies and regulations for the rail transport in the country," he told the legislature. Lawmakers said with massive industrialisation and investment in downstream petrochemical projects being undertaken by the UAE, the country is expected to witness a sharp growth in manufacturing activities in the coming years. This will require a speedy and efficient transportation and distribution network, in which the rail will play a vital role, they said. Once completed, the network will link up with similar projects in neighbouring GCC countries.

In Dubai the route will pass through Jebel Ali - but according to the current plans it will not be linked to the metro's red line, which will stop there. The network would ultimately be connected to the planned GCC railway network whose construction is scheduled to start in 2010. The GCC railway network will run for 1,000km near the Gulf coast, extending from Muscat in Oman to Kuwait City and passing through the UAE, Qatar and Saudi Arabia at speeds of up to 180kph.

The property sector of Ajman is on its path of progress and will be rejuvenating in times to come as disclosed by a senior official: "We seek to implant confidence in the minds of investors and buyers of real estate units. The market is doing well and is moving steadily especially after it absorbed the fallout of the global financial crisis," Arabic newspaper Al Khaleej quoted Ajman Land Department General Manager Harib Al Aryani as saying.

The prime aim of the conference was to evaluate the performance of the property market during the beginning of the year and concurrently devise strategies for critical times approaching. He also accentuated upon the proper implementation of all laws and regulations specified by monitory authorities.
During the beginning of the year the government of Ajman established the Ajman Real Estate Regulatory Establishment in order to watchdog the changes and operations being conducted in the realty sector. The organization has also proposed the idea of escrow account formation in which all money deposited by developers will solely be utilized for construction purposes.

In addition to this the establishment will also take the responsibility of administering all property dealings and registration of all property developers. According to Awali Real Estate the formation of such a regulatory authority will spark a new revolution helping in the modification in the skyline of the property sector of Ajman.

"Establishment of such an authority at this crucial time is very significant, and could lead the emirate to be the first to recover from the effects of the financial crisis." Ali Al Nemer, Awali Company Managing Director, said: "The establishment of the real estate authority at this current time is a sound and intelligent move. It reflects a very distinct and ambitious vision to turn Ajman into a foreign investment destination, on the one hand, and to strengthen Ajman's status in the UAE property market, on the other."

It must be kept in mind that in comparison to other emirates, Ajman witnessed a phenomenal influx of foreign investment estimated to be 33%.

"In a time where companies worldwide are busy seeking outlets for their financial dilemmas, Ajman's developing means to regulate property market movement, preparing the market for the post-crisis period. Ajman has worked for years to develop regulations and improve its infrastructure, and has in the process attracted real estate investments in excess of Dh400 billion in 2008 according to reports," he added.

According to Chief Executive Officer of Sweet Homes Group the market is anticipated to develop but at a dawdling speed. "We still see the market growing yet at a slower pace. Property developers will focus more on getting their projects finished and they will be aided by a drop in commodity prices and construction costs. Property is never a deal of loss as it is always something that is in constant demand. It is the personal position of the property holder that makes it so. The real estate market is experiencing the effects of a global credit crunch but there are investors who are still on the lookout for a good bargain," he added.

GS Property Developer-Ajman, is proud to announce the newly appointed Office Manager, Mr. Frank G. Dutine, German national. Mr. Frank holds a degree in business of the Chamber of Industry and Commerce Nuremberg, Germany. He has international business experience in Germany, China and in the UAE. Mr. Frank is looking forward to improve the organization in the aspect of ISO 9001 quality management. Our warmest congratulations from the management and staff of GS Property Developer.

GS Property Developer, a German-owned, internationally experienced property developer and real estate company who specialize in delivering property solutions to meet the demand of the international property investor market. High rise building investments are the expertise. GS is a company whose principals have over 25 years of experience in regards to international property development and management. GS is a company that caters to every customers' need. Whether you are an established real estate company or an investor, the company has exciting projects that will interest you with over 1b Dirhams volume, coming on the way in the emirate along Emirates Road. The major project will be venturing in a five tower complex in Park View City, Ajman, which is called "Parkview Palace". The project is composed of five palatial towers having basement parking plus ground floor semi-parking and typical seven floors podium parking. On the top of the podiums have garden terrace, swimming pools and gymnasium. Parkview Palace towers have the advantage of a dedicated activity area designed to satisfy every desire for leisure and pleasure, relaxation and recreation. Price per value is unique and at least 60% less than in the neighbouring Dubai.

Property in the United Arab Emirates has been one of the leading investments in the world over the past few years, with Dubai leading the way. The tiny emirate of Ajman is looking to be the next UAE property hotspot. Ajman is not far from Dubai along the coast of the persian gulf and is looking to grow its property sector as well as its infrastructure in the next few years.

A new US $3.3 billion Ajman international airport is currently under way and scheduled for completion in 2011. The six million square meter site will include residences and business areas in addition to the airport facilities. The airport is intended to target low cost carriers, making this destination easy to get to from anywhere. In addition to the new airport, the Dubai Metro is considering extending its system to Ajman. The Dubai Metro is under construction, with the first phases set to open in 2009.

In addition to the property and infrastructure projects that are under construction, a new initiative was passed that virtually guarantees a residence visa for buyers of property in the emirate. The visa will be issued once the buyer or investor gains possession of the property and the developer issues a no objection letter, which should be a formality.

Currently, properties in Ajman cost much less than in nearby Dubai. Property in the emirate is close enough to commute to work in Dubai and still costs at least 35% less than similar homes. New developments are popping up all along the coast in Ajman and will help to drive the next UAE property hotspot.

GS Property Developer is a German-owned, internationally experienced property developer and real estate company who specialize in delivering property solutions to meet the demand of the international property investor market. The chairman, HRH Princess Fay von Ary outpoints that high rise building investments are the expertise. GS is a company whose principals have over 25 years of experience in regards to international property development and management. Germany, England, California and the South of France are some of the main regions where the property activities have been successful. The CEO, Alex S. von Ary (M. Eng.), explained, "it is the expertise in foreseeing rising markets and developing off-plan purchases that allows the company to offer buyers the maximum returns on investment". GS builds properties with the best specifications which provide the highest investment returns, but it also incorporates excellent lifestyle options. This means a lot of hard work from the company's serious professionals to bring the investors the quality that they are looking for. GS aims to provide and meet people's lifestyle and work aspirations in regards to better more affordable and impressive projects. Quality management in accordance to ISO 9001 assures the investor the very best returns.

"We deliver!"

GS has come up with a unique Dhs. 1b project in Park View City Ajman, the "Parkview Palace". The building is equal to its title that demands with the link between the aesthetics and historical status be as obvious as the Palace' extraordinary lineage. It is a perfect combination of timeless style in an affordable environment. Parkview Palace is a world class development featuring a harmonious balance of residential and state of the art commercial towers that allows the highest quality of a modern lifestyle.

GS Property Developer, Ajman, one of the leading German-owned international property developer in New Ajman will be pre-launching soon. It is a first state of the art commercial tower in Park View City, one of the best locations and safest haven in the emirate of Ajman. The company is targeting maximum satisfaction for clients not only during the sales process but also after the sale. A thoughtfully designed and stress-free working and living environment is vital for creative exuberance and excellence.

At GS, volumes of projects are in progress of over Dhs 1 billion. One of the main projects of GS is the five tower, "Parkview Palace" project at emirates road in Park View City, with the major activity focussing in the "Center Point Tower", (project volume of Dhs 300 million). It is a full commercial tower, with a unique business center concept that can be found only in the emirate of Ajman. This commercial development upholds a work culture that is both revitalizing and work-oriented, enabling employees reap rich dividends. The "Center Point Tower" will seek to out-class other properties in the market for its prime location, efficiency and effectivity. The "Center Point Tower" has unique business center services with a central reception in each floor, phone and fax secretary services and internet WiFi areas, meeting rooms and free sponsorship, are just some benefits of this unique package. This is the perfect place for both entrepreneurs and small businesses.

Besides the Center Point Tower, other residential building projects are the North and South Towers and the East and West Wing Towers. It is a multibillion dirham venture which makes working, living and leisure harmonious with one another. These major developments will incorporate significant office components and civic amenities as well as sophisticated and luxury living that develop the concept of a "community" where people can work and live in the same complex. "Center Point Tower" at "Parkview Palace" is endowed with innovative state of the art features and with the latest technology that effectively heightens the pleasures of working and living in style. The other four towers are creating valuable lifestyle-adapted communities which are one of its kind with highly progressive and lifestyle masterpieces.

GS Property Developer-Ajman, is proud to announce the newly appointed Sales Director, Mr. Mohammad Reza Bakhshaei, he holds a BBA & Marketing degree of Azad-University. Since he joined the company, he made outstanding progress in building profitable business. Mr. Bakhshaei has proven success in addressing the challenges and his innovative plans for the future development of the company and Ajman, make him a valuable asset and we are confident that he will deliver major benefits for the company. Our warmest congratulations from the management and staff of GS Property Developer.

GS Property Developer, a German-owned, internationally experienced property developer and real estate company who specialize in delivering property solutions to meet the demand of the international property investor market. High rise building investments are the expertise. GS is a company whose principals have over 25 years of experience in regards to international property development and management. GS is a company that caters to every customers' need. Whether you are an established real estate company or an investor, the company has exciting projects that will interest you with over 1b Dirhams volume, coming on the way in the emirate along Emirates Road. The major project will be venturing in a five tower complex in Park View City, Ajman, which is called "Parkview Palace". The project is composed of five palatial towers having basement parking plus ground floor semi-parking and typical seven floors podium parking. On the top of the podiums have garden terrace, swimming pools and gymnasium. Parkview Palace towers have the advantage of a dedicated activity area designed to satisfy every desire for leisure and pleasure, relaxation and recreation. Price per value is unique and at least 60% less than in the neighbouring Dubai.

In spite of the recurrent global financial crises, the UAE is registering impressive growth in all spheres of developmental activity. Rapid urbanization and industrialization have triggered a population boom in the country that is expected to grow by 7% in 2009. According to a release by the UAE Ministry of Economy, the country's population, estimated at 4.48 million at the end of 2007 is projected to climb 6.12% to 5.06 million by 2009. The per capita income of residents has more than doubled from AED 76,000 (US$ 20,000) in 2006 to AED 162,000 ($US 44,000) in 2007, indicating a steep rise in personal incomes despite inflation. Upon evaluating the current and future scenarios, our research team foresees a shortage in the mid-level housing sector that would ignite a scramble for affordable residential properties and amenities.

As real estate prices and rents soar in Dubai and neighboring Abu Dhabi, Ajman with its moderately-priced offerings is drawing considerable investor interest. The recently issued Realty Law legalizing freehold ownership in the emirate has heightened buyer confidence in the market. Property prices in Ajman now average between AED 700 and 750 per square foot as compared to AED 2500 and 3000 per square foot in Dubai.

Unlike Dubai or Abu Dhabi, Ajman is home to a large number of residential developments targeting the middle-income segment. And, we expect the trend to continue as the disparity between demand for and supply of affordable housing grows wider elsewhere in the UAE. Consequently, the emirate is growing popular among non-GCC expatriates on the lookout for quality yet inexpensive accommodation. We expect a high demand in the immediate future for smaller properties like 1 and 2 bedroom apartments, as families shift base to Ajman from neighboring Dubai. This is expected to raise primary as well as secondary sales of properties. Once the road projects are complete by 2011, prices and rents will certainly head north as more families opt for Ajman instead of neighboring emirates.

One overseas property expert has tipped the United Arab Emirate of Ajman as a good place for investors to consider. Nicholas Marr, chief executive of www.homesgofast.com, explained that the state's proximity to Dubai meant that it was likely to see price rises in the near future.

He acknowledged that Ajman did not currently possess the infrastructure of some other Middle Eastern states, but added that this was sure to improve in the coming years. In fact, Mr. Marr went so far as to state that Ajman was his "tip for the top" when it came to international investment opportunities.

"I see this part of UAE as Dubai a few years ago and property prices are low; starting from about £28,000.00" he explained. "Dubai prices are being put up each year, not by demand but by the developers, meaning many workers will be priced out of the region. The lack of infrastructure at this time in Ajman and its desire for foreign investment makes this ideal for speculators."

In related news, Mr. Marr said that Egypt, Turkey, Florida and Portugal all remained good bets for international investors. Ajman is the smallest emirate by area. It is located on the Persian Gulf.

The total value of real estate projects under construction in the GCC is worth more than AED 8.8 trillion, according to latest industry research.

Driven by its aim to meet the demand for rubber based products within the booming regional construction market, Rubber World Industries (RWI), the leading manufacturer of closed cell rubber insulation "Gulf-O-flex" in the Gulf and South-East Asia and part of the international business conglomerate, the Memon Group of Companies, has announced its aims to increase its market share within the Middle East, which is currently at 86 per cent.

The announcement follows the construction of a new production facility worth AED 30 million in Ajman, in an attempt to meet the rising demand for rubber-based products within the booming regional construction market. The rapid emergence of high-profile developments has driven the total value of projects in the GCC, thereby presenting RWI with an excellent opportunity to penetrate the market with its top quality rubber insulation products.

With modern plants located in Ajman, UAE, the manufacturer is undergoing major expansion activities that will triple the production capacity within a five-year period to address the demand. The company has also revealed its efforts to further enhance the performance of its versatile range of rubber insulation producs to meet requirements in the oil and gas fields, construction, shipping and the automobile industries.

"As the only producer of rubber insulation in the Middle East region, we are steadily moving towards our goal of maintaining our leading position by offering a wide range of high-performance rubber insulation and other derived products to discerning regional customers," said Abu Baker Shaikhani, managing director, Rubber World Industries, and chairman of the Memon Group.

"In line with our aggressive expansion, we have earmarked a total of AED 30 million for 2008, which is focused on increasing our production capacity from 1,200 containers to over 3,600 containers per year by 2013. The Gulf countries account for a total of 3,519 projects and our aim is to see our products used in most of the developments being constructed in the region at present. In addition to our expansion plans, we are also investing in research and development to meet regulatory requirements, which are focused on reducing costs and energy consumption in line with "green building" initiatives by regional governments," said Mr Shaikhani.

The Ajman government will spend Dh3 billion (US$821 million) over the next three years to develop the emirates roads, a plan officials hope will put an end to traffic woes.

Mohammed Ahmed al Awadhi, the director of infrastructure development at Ajman Municipality's Planning Department, predicted driving would be much easier when the dozen projects were completed by the end of 2011. Already 80 per cent of the project designs have been completed, Mr Awadhi said. The proposed projects, which have been approved by the federal government, include widening and lengthening several roads. They also include the construction of bridges and additional road lighting.

We are already working on road development projects that include expansion and building bridges on three main roads in the emrate, said Mr. Awadhi. These projects alone under work have cost a total of Dh408m. The road development projects will expand Sheikh Rashid bin Humaid Road, link Sheikh Maktoum bin Rashid Road with two major arteries Sheikh Khalifa and Sheikh Rashid bin Saeed roads and enable Al Zorah Road to handle more cars. Three tunnels will be added to Sheikh Rashid bin Humaid Road, which will be expanded to six lanes and lengthened by four kilometres.

A tunnel will be built under the Humaidiya Bridge, while another bridge will be constructed to link Maktoum bin Rashid Road with Sheikh Khalifa and Sheikh Rashid bin Saeed roads. The third project will expand Al Zorah Road, which will be linked by a bridge to Sheikh Rashid bin Humaid Road. A new intersection will also be built on the road, which will be lengthened to nine kilometres.

Other projects being designed include a network of roads in the Ajman Palm along a 10km stretch of the coast at a cost of Dh39m. A series of bright street lights will also be erected there, along with a new sanitation and drainage network. Mr. Awadhi also said there were plans to build four bridges in different parts of the emirate at a cost of Dh325m.

The bridges will be added to Sheikh Maktoum bin Omar Al Aas Road, at the intersection of Zahra Street and Sheikh Rashid bin Humaid, at Naeemiya Road and Sheikh Rashid bin Saeed Road. The other projects include creating a network of roads and a service road to help drivers better navigate the Julfar area. The entire project, including drainage and lighting facilities, has been budgeted at Dh79m. The new service road, stretching up to 20km in length, will cost Dh39m, including lighting and drainage facilities.

We have already started surveying the area and set up a site office there, said Mr Awadhi. Construction work would begin soon before the end of this year, he added.
Service roads are also planned for Al Naeemiya area, which with lighting and drainage facilities are to cost Dh22m. During the next three years of construction, Mr Awadhi urged motorists to follow signs and alternative roads. He said the municipality was ready to receive any comments or complaints from the public.

The projects are being monitored by Sheikh Humaid bin Rashid Al Nuaimi, the ruler of Ajman, Sheikh Ammar bin Humaid Al Nuaimi, the Crown Prince of Ajman, and Sheikh Rashid bin Humaid al Nuaimi, the Chairman of the Ajman municipality and planning department.

The tiny emirate of Ajman is the latest to feel the domino effect from Dubai's burgeoning property market. With a number of lucrative investment opportunities emerging, offering the prospect of high returns, a growing number of property investors are being lured into buying property in Ajman.

Led by His Highness Sheikh Humaid Bin Rashid Al Nuaimi, Ajman, the smallest emirate state, with a population of just 240,000 people, is trying to emulate the property success achieved in neighbouring Dubai. Located an hour's drive north of Dubai, this rising city is witnessing significant economic growth, spurred by a fast emerging property sector. Property prices have recorded strong appreciation – up to 40% over the past year or so, after Ajman became the second emirate, following Dubai, to offer freehold property. It is also the only state to offer 100 per cent ownership of residential property to people of any nationality.

Alex Upson, Cluttons Middle East, reports that while Dubai looks about building more properties at the luxury end of the market, Ajman is filling a gap, by catering for homeowners at the lower end of the sector. "Ajman is learning from Dubai and is providing very good, reasonably priced residences, at the very important lower end of the market, which is being increasingly ignored by Dubai," he said.

Property prices in Ajman are generally around a third cheaper than in Dubai. This is culminating in a demographic shift, as the emirate starts to attract a growing number of Dubai-based workers, many of who are commuting to work via the Emirates Road.

Stewart Banks, head of product sourcing, Dream Homes Worldwide comments: "The Ajman price point is excellent for investors as the location for the majority of the up coming developments is on the Emirates Road, forming a "commuter belt" to Dubai. This is particularly attractive for people who can now no longer afford to buy or rent in Dubai."

Dubai: Ajman has around Dh1.4 billion worth of infrastructure projects under construction to support the rocketing pace of real estate development in the emirate. Ajman has the third largest real estate market in the UAE, just behind Dubai and Abu Dhabi.

There are currently six mega projects underway in Ajman, with a combined value of Dh40.8 billion, according to Mohammad Al Zarah, vice-president of Great Properties. This accounts for over 10 percent of all projects underway in the whole of the UAE. Projects in Dubai account for 50 percent of the UAE's construction activities and Abu Dhabi projects account for 30 percent, according to Al Zarah. Ajman is now making headway in improving its roads and sewage treatment plants. "A solid infrastructure is being implemented in Ajman with a total investment of about Dh1.4 billion", Al Zarah said.

Allocation

"This figure includes Dh500 million allocated by the emirate for infrastructure as well as Dh800 million that was allocated for he recently launched sewerage system, which is one of the most important infrastructure projects in the emirate," Al Zarah said.

Following tremors in investor confidence and the lack of water, electricity and road networks in Ajman, the government is now making concerted efforts to create good infrastructure networks to attract more investors. His Highness Shaikh Humaid Bin Rashid Al Nuaimi, Member of Supreme Council and Ruler of Ajman, and Ernest Nevaratnam, head of investment and projects at Malaysian Mining Corporation (MMC), Malaysia, signed an agreement on July 17 to build the first coal-fired power plant in the UAE at a cost of $2 billion.

UAE-based BSEL Infrastructure Realty has welcomed Ajman Government's decision to set up a 1000MW coal-driven power plant in the emirate.

"It is certainly a move in the right direction to provide power supply to the region. Investors and property buyers can now be assured that the decision made by Ajman will provide necessary support and infrastructure in the future," said Christina Cabading, President, BSEL Infrastructure Realty. "Coupled with last month's introduction of a new set of laws pertaining to real estate, the power plant news is a strong message that Ajman means business. The emirate has been and will now continue to be a good long-term investment destination."

Last week, Ajman Government also announced a feasibility study of bigger power plants. The power plants are part of the Ajman Government's efforts to ensure adequate infrastructure to keep pace with the increasing residential projects in Ajman. The facility will provide adequate electricity to all the real estate projects in the city. BSEL Infrastructure Realty has high exposure in Ajman with seven plots of about 7.9 million square foot in Emirates City. It will be building a cluster of seven towers - Pearl, Fayrooz, Kahraman, Almas, Emerald, Sapphire and Ruby at a cost of Dh2bn.

Dubai: The first coal-driven power plant in the UAE is to be up and running in Ajman in around three and a half years as part of government efforts to ensure adequate infrastructure is in place to cope with increasing residential projects in the emirate. His Highness Shaikh Humaid Bin Rashid Al Nuaimi, Member of Supreme Council and Ruler of Ajman, and Ernest Nevaratnam, head of investment and projects at Malaysian Mining Corporation (MMC) Malaysia, signed the agreement yesterday to build a 1,000-megawatt power plant at a cost of $2 billion.

Although the UAE sits atop the world's fifth largest gas reserves, this power plant is to be powered by coal. As the economic boom continues in the Gulf, pushing the demand for power and water to the limit, many countries are turning to coal which is a cost-effective alternative. However, it is not clear where the coal will be brought in from. The new plant will be a welcome relief for the emirate's developers who have been struggling with delays in handover of projects while simultaneously trying to attract investors, due to the lack of adequate electricity supplies.

Positive development

Abdul Sattar Dero, chairman of Sweet Homes developers in Ajman, said the power plant would be very positive for developers and investors. "There won't be any more problems as electricity will be there. It will definitely help us," Sattar Dero said.

Sweet Homes currently has over Dh4 billion worth of projects in Ajman and many end-users have been put off investing due to the lack of electricity and water facilities. On the downside, the new power plant may cause the market to increase in Ajman as such fears will be reduced, said Sattar Dero. He said that the power plant is to provide enough electricity to the many upcoming real estate projects in Ajman. MMC Malaysia will operate the plant for 20 years once completed.

Two other power plants built by the Federal Electricity and Water Authority (FEWA) will start operating in the next few months in order to provide existing real estate projects with electricity until the new power plant is completed. Officials at Fewa, which has been mandated to develop and manage power and water supply to the four northern emirates, were unavailable for comment. Power, water and gas supplies could fall short of demand due to the massive construction activities in Ajman, Umm Al Quwain, Fujairah and Ras Al Khaimah. The news comes a few days after Ras Al Khaimah officials said they are going to develop power plants with a total capacity of 2,740MW.

The emirate will spend Dh431 million (US$117m) this year on improving health services by building new hospitals and health centres including a world class maternity hospital a senior health official said today.

The Dh200m hospital specialising in gynaecology and obstetrics will have about 140 beds including a maternity ward, said Hamad al Shamsi, the head of the Ajman health district and director of Sheikh Khalifa Hospital.
"We have tried to make it to international standards."
"It will be opened 24 hours a day with three operation rooms and an intensive care room for children," he said.

A new general hospital is also being built in Masafat with up to 100 beds and a 24-hour accident and emergency centre. Mr. Shamsi said four more health centres were planned in the emirate, while a specialist dental hospital with 12 clinics was due to be completed this year. Sheikh Khalifa Hospital, the biggest in the emirate, will be expanded this year with the addition of 160 beds, bringing the total to 550, and an increase in the number of doctors from 70 to 94, including an additional 18 Emirati doctors. The number of nurses will increase from 220 to 248, including six Emiratis.

"We have also introduced new sections in the hospital such as a brain surgery section, nerves and kidney surgery sections, and will soon open the mental health clinic," Mr Shamsi said. Officials this month submitted a draft proposal to the Ministry of Health for a diabetes centre costing Dh20m. A project for providing improved services in preventive medicine, motherhood, childhood and school health is also planned for completion next September at a cost of Dh50m.

Plans have been discussed to extend the Dubai Metro system, which is currently under construction, to neighbouring emirate Ajman. Although the project is still very much in its "proposal phase", this surprise news is aimed at meeting the growing demand for a public transport system that will connect the Emirates.

According to the proposal, the metro will pass through Emirates Road to Al Corniche in Ajman. From there it will go to Al Zawra and then onto new investment areas currently under development. Sheikh Rashid bin Humaid Al Nuaimi, Chairman of Ajman Municipality and Planning Department has, however, stressed that this proposal is only in discussion and many considerations still have to be made.

Construction of the Dubai Metro system is well underway with the first lines due to open in September 2009 and fully operational by 2012. Metro transport is favoured by many as a fast, safe, economical way of getting around, and with over 70km of train lines planned for Dubai; huge areas can be covered in a short space of time.

With the continuous success of Dubai in the property rankings, Ajman is attracting a wealth of investors looking to follow in the triumphant footsteps of Dubai. More and more people are investing in Ajman, and with the current forecasts predicting some very attractive capital appreciation, this emirate is sure to be a winner for anyone’s property portfolio. If the extension of the metro to Ajman receives the "green light", Ajman will undoubtedly go down the same line of success as Dubai.

Marketing Director of Dream Homes Worldwide Adam Godwin, comments, "With property in Ajman boasting a freehold status, as well as the same attractive personal taxation environment as Dubai, Ajman is a safe and secure emirate in which to invest. With an expected rapid increase in population over the coming years, property prospects are certainly looking positive."

News submitted by Louise Shipway, Dream Homes Worldwide

Dubai: The Gulf property market has attractive opportunities for investors seeking to escape a global fall in property investment transactions, a leading real estate consultancy said on Saturday. Robin Williamson, managing director of DTZ's Middle East operations, said although the worst of the first phase of the sub-prime crisis appears to have passed, the credit crunch has further to go and will continue well into 2009, particularly across the European and US property markets. The company's positive outlook for the Gulf follows the publication of DTZ's annual Money into Property report, which looks at global property trends. The report revealed that the value of the real estate capital market reached $12 trillion in 2007, up 18 per cent on the previous year.

Global investment transactions also grew to $730 billion in 2007, but, following the change in the global investment environment last year, DTZ expects a fall of 30 per cent in 2008 to about $500 billion. Global direct real estate transactions were down some 50 per cent in the first quarter of 2008, compared to the same time in 2007. "Few regions will escape the effects of the sub-prime fall out," Williamson said. "However, we predict that the Gulf region will, to a greater extent, be significantly less affected, along with certain other markets in the Asia Pacific region," he said. "Based both on our research and our on-the-ground experience of dealing extensively across the Gulf markets, we have seen strong indications that the regional property markets are much less likely to succumb to these global trends."

Foreign buyers have been advised to consider purchasing property for sale in Ajman. According to property specialist Sajeer Babu, the Ajman area is much cheaper than neighbouring emirates such as Dubai and Abu Dhabi. Speaking to the National, he said it could therefore represent a far better investment opportunity. Mr. Babu commented: "You can have a one-bedroom flat for [£55,000], while it would cost you four or five times that price in Dubai." He added that since property values in Ajman are starting from a relatively low base, they are more affordable and offer more growth potential. This means that buyers of property for sale in Ajman could potentially collect higher returns than those who are investing elsewhere. Earlier this month, DSL Exhibitions predicted that property for sale in Ajman could rise in value by as much as 40 per cent during the next six months. Marketing director Tessa Morris told gowealthy.com that confidence is high among property professionals in both the residential and commercial sectors in the emirate. Breaking news provided by Real Estate TV, specialists in Ajman property for sale.