1

CONSULATE GENERAL OF THE REPUBLIC OF KOREA IN DUBAI

Dubai and Northern Emirates Economy

Weekly Report ne142018

Trends covered 05 April to 12 April 2018

2

Contents

I PROJECTS amp INFRASTRUCTURE 3

Expo 2020 Dubai 3

Fujairah Intl Airport expansion project 4

Festival Plaza 4

I OIL SECTOR 6

New law regulating the petroleum sector in Ras al-Khaimah 6

Fujairah oil stocks 6

II NON OIL SECTOR 8

Fujairah GDP in 2017 8

Dubai Business conditions 8

Dubais private sector economy in March 9

REAL ESTATE AND CONSTRUCTION 11

Dubais mid-market real estate in Q1 11

Construction activity 12

FINANCES 13

Sharjah FDIs in 2017 13

TOURISM 14

Dubai hotel room rates 14

III MARKET TRENDS 16

1 Oil prices 16

2 Market General Index (DFMGI) 17

IV EVENTS 18

14th International Property Show 18

V REFERENCES 19

3

I PROJECTS amp INFRASTRUCTURE

Expo 2020 Dubai

Expo 2020 Dubai has signed global tech firm Cisco as its digital network partner

The partnership will see Cisco provide tailored digital connectivity for every visitor to the site on

any device - securely reliably and seamlessly Expo 2020 Dubai organisers said

Using its various lsquointelligent solutionsrsquo Cisco will link visitors participants devices applications

business processes and the Expo network into a lsquosmart sitersquo which organisers have said will

make Expo 2020rsquos technology infrastructure the most advanced in World Exporsquos 167-year

history

Whether it is sharing images of Expo 2020rsquos architecture and exhibits or using the official app to

navigate the site check queue lengths or order food people who visit the global destination

during the six months of the event will be fully connected

The partnership will see the first rollout of lsquoCisco Visionrsquo outside the US which will provide

dynamic signage and high-definition digital content and video delivering information and

experiences throughout the Expo in a way that enhances attendee engagement Expo 2020 Dubai

said

It will also enable more than 200 international and other participants to offer compelling

interactive experiences and communicate with visitors and employees in new and more impactful

ways

The collaboration will also see Cisco provide other services solutions and equipment that allow

systems across the Expo 2020 site to engage and securely communicate

has extensive experience in delivering digitally-driven experiences for events on a global scale

Cisco was a strategic partner at both Expo Shanghai 2010 and Expo Milano 2015 as well as the

official networking supplier for both the London 2012 and Rio 2016 Olympic and Paralympic

Games

The tech firm becomes the ninth Expo 2020 Dubai Official Premier Partner alongside Emirates

airline Accenture DP World Emirates NBD Etisalat Nissan SAP and Siemens The Official Partners

4

so far named are DEWA and UPS More partnerships are expected to be announced in the coming

months

Fujairah Intl Airport expansion project

Abu Dhabi Airports announced on Monday the signing of a contract with the joint venture of

Orascom Construction Co and Al Sahraa General Transport amp Clearance Abu Dhabi for the

expansion program of the Fujairah International Airport

The scope of the contract includes design and construction of a new parallel taxiway and

emergency runway with airfield lighting system plus the upgrade and extension of existing runway

and connecting taxiways

The deal also includes a new air traffic control tower and air traffic management systems in

addition to an Aircraft Rescue and Fire Fighting Sub-station along with other associated

infrastructure works

The contract award comes as a result of an agreement signed between Abu Dhabi Airports and the

Department of Civil Aviation of Fujairah in 2014 As per the MOU Abu Dhabi Airports would lend

its resources in the planning stage and also provide administrative assistance during construction

Festival Plaza

Al-Futtaim has revealed that its new lifestyle shopping destination in Jebel Ali will be called Festival

Plaza

The name has been chosen in recognition of Al-Futtaimrsquos successful Festival City Malls brand

located across the MENA region

Following its ground-breaking in March 2017 the mall is planned to open in the fourth quarter of

2019 the company said in a statement

It added that Festival Plaza will have a retail mix to appeal to visitors looking for the best in lifestyle

home food hypermarket and entertainment brands The two biggest announcements so far have

been new concept stores for both IKEA and Al-Futtaim ACE

5

Timothy Earnest group director Retail Malls said ldquoWith our sights keenly fixed on the future

development of Dubai and our confidence in the growth potential during the build up to Expo

2020 we see Festival Plaza becoming a major urban lifestyle destination

ldquoSince we broke ground last year we have received a hugely positive response from residents and

keen interest from retail groups both internationally and in the UAE and are very much looking

forward to welcoming themrdquo

The new development will welcome Dubairsquos second IKEA which will be the brandrsquos newest

concept store globally and will in total host approximately 100 retail outlets a food court and cafeacute-

style dining entertainment and a hypermarket

The location of the new development will be inside wasl Gate a masterplanned community which

will also include a world-class sports complex K-12 schools with international curriculums as well

as a central park connecting the communityrsquos commercial and residential neighbourhoods

6

I OIL SECTOR

New law regulating the petroleum sector in Ras al-Khaimah

HH Sheikh Saud bin Saqr Al Qasimi Supreme Council Member and Ruler of Ras al-Khaimah has

issued a law regulating the petroleum sector in the emirate of Ras al-Khaimah

The law aims at regulating the exploration and commercial use of the petroleum resources within

the territories of Ras al-Khaimah in a way that will benefit the national economy and provide a

conducive environment to attract investments in the sector

It also provides a regulatory framework for the exploration development and commercial

operations of petroleum resources in Ras al-Khaimah

Fujairah oil stocks

Total oil product stocks in Fujairah were 18620 million barrels as of Monday up 122 percent from

a week earlier after a sharp rise in middle distillate numbers according to latest data from the

Fujairah Energy Data Committee or FEDCom

Stocks of middle distillates surged 642 percent on the week to 2855 million barrels Bullish

sentiment in the Asian jet fuel market intensified supported by supply tightness for prompt barrels

as a result of ongoing refinery turnarounds in Asia and the Middle East SampP Global Platts Analytics

said in a report

In addition still-workable arbitrage economics coupled with declining voyage rates pushed jet fuel

barrels from the Gulf and India to Europe as well as from South Korea to the US west coast This

further exacerbated the tight supply the report said

Demand for jet barrels in the Arab Gulf was seen as strong Fundamentals in the Asian gasoil

market were stable and unchanged with softer demand for ULSD and higher freight rates making

it uneconomic to ship cargoes to the west of Suez despite heightened post-winter demand in

Europe

Stocks of heavy distillates and residues also rebounded by 20 percent to 8456 million barrels

Buying sentiment in the Fujairah bunker fuel markets was strong at the start of the week but

retreated on a rise in outright prices Some sellers reported steady levels of inquiries but said bids

were relatively unattractive for deals Fujairah-delivered 380 CST bunker fuel was assessed at

US$39325mt on Tuesday up by US$625mt from Monday

7

Stocks of light distillates fell by 64 percent week-on-week to 7309 million barrels Fundamentals in

the Asian gasoline market seemed to be weakening on excess supplies and tepid demand within

the region with no increase in spot demand seen lately Platts Analytics said

In a potential blow to refiners in India and East Asia Irans oil minister Bijan Zanganeh announced

this week that his country will cease imports of gasoline by the fourth quarter of the year given the

near-completion of Phase II of the Gulf Star refinery

8

II NON OIL SECTOR

Fujairah GDP in 2017

The Annual Statistical Book 2017 of Fujairah showed that the emiratersquos GDP reached AED154

billion in 2017

The value of direct foreign trade amounted to AED64 billion and trade via its free zone amounted

to AED8 billion totalling AED144 billion

The 21st edition of the book issued by the Fujairah Statistics Centre yesterday highlighted the

various developments taking place in the emirate in light of the directives of HH Sheikh Hamad

bin Mohammed Al Sharqi Supreme Council Member and Ruler of Fujairah and the close

monitoring of HH Sheikh Mohammed bin Hamad bin Mohammed Al Sharqi Crown Prince of

Fujairah

The book also said that the emiratersquos population at the end of 2017 reached 236810 while the

previous year witnessed 3924 births and 260 deaths Fujairah International Airport also handled

9204 flights while the number of hotel guests in the emirate reached 706320 The emirate has 31

banks and currency exchange facilities

The number of employees of federal and local government departments reached 15860 while the

number of public and private schools reached 70 with the total number of students amounting to

40700 The emirate also has eight universities and higher education colleges 244 industrial

establishments and 12320 com

Dubai Business conditions

Emirates NBD said that anecdotal evidence suggests that significant inflows of new orders led to

the rising business activity

Business conditions across Dubairsquos non-oil private sector improved in March with sharp growth

in output and new work according to Emirates NBDrsquos seasonally adjusted Dubai Economy

Tracker

According to the data non-oil private sector firms noted a sharp level of output in March albeit at

a slower rate than seen in the previous two services

Emirates NBD said that anecdotal evidence suggests that significant inflows of new orders led to

the rising business activity

9

The data showed that job shedding returned to the non-oil private sector for the first time in 13

months following unchanged employment levels in the preceding survey period The overall rate

of contraction however was found to be marginal

New work grew during March with many firms adopting successful promotional strategies

extending the current sequence of improvement to 25 months

Additionally despite falling to a seven-month low business confidence was found to have

remained strong overall with optimism underpinned by new project wins and expectations of an

upturn in economic conditions

For the first time since February 2016 average cost burdens faced by the non-oil private sector fell

with many respondents reporting price discounting at suppliers The rate of decline however was

fractional overall

Prices charged were also found to have dropped in March ending a three-month sequence of

inflation According to Emirates NBD many businesses reported that output charges have been

reduced to help stimulate client demand

ldquoWhile the Dubai Economy Tracker fell to a four-month low it remained firmly in expansionary

territory with travel and tourism the outperformerrdquo said Daniel Richards MENA economist at

Emirates NBD ldquoThat being said firms continue to make price discounts in order to bolster

demandrdquo

Richards added that squeezed margins appear to be taking their toll on employment

ldquoNevertheless we anticipate faster growth in the Dubai economy this year bolstered by ongoing

infrastructure projects and greater government spendingrdquo he added

Dubais private sector economy in March

A key gauge of Dubais non-oil private sector economy eased slightly in March to the lowest

increase in four months but it remained in growth territory as business conditions improved

But employment slipped into contraction for the first time since February 2017 as squeezed

margins took toll on jobs

10

The seasonally adjusted Emirates NBD Dubai Economy Tracker Index ndash a monthly composite

indicator designed to reflect business conditions ndash slipped to 553 down from 558 in February A

reading above 50 suggests the non-oil economy is growing while a reading below 50 suggests a

contraction

The March figure for the overall economy of the emirate indicated a marked expansion that was in

line with the historical average Growth was also recorded across all three sub-sectors monitored in

the survey led by travel and tourism which ended March at 567 followed by wholesale and retail

at 563 and construction at 532

ldquoWhile the Dubai Economy Tracker fell to a four-month low hellip it remained firmly in expansionary

territory with travel and tourism the outperformerrdquo said Daniel Richards the Middle East and

North Africa economist at Emirates NBD

ldquoWe anticipate faster growth in the Dubai economy this year bolstered by ongoing infrastructure

projects and greater government spendingrdquo

Dubai which has announced record expansionary budget this year is preparing to spend billions

of dollars to complete Expo 2020-related projects The commercial and tourism hub which is

expected to receive millions of visitors during the six-month global fair is witnessing an

improvement in business sentiment as its economy recovers after a three-year oil price slump

Non-oil private sector companies noted a sharp output growth during March but at a slower rate

than that seen in the previous two surveys According to anecdotal evidence strong inflows of new

orders were linked to rising business activity the Emirates NBD survey noted

Successful promotional strategies helped Dubai companies to continue to generate strong growth

of new work in March The rate of expansion during the latest survey was broadly in line with the

average seen over the last two years

Despite easing to a seven-month low in March business confidence towards future growth

prospects remained strongly positive overall

ldquoOptimism was underpinned by new project wins and an expected upturn in economic conditionsrdquo

the survey said

In terms of inflation average cost burdens faced by the non-oil private sector firms fell for the first

time since February 2016 The rate of decline however was fractional overall Prices charged also

dropped at a moderate pace in March ending a three-month sequence of inflation That being said

companies continue to offer price discounts in order to bolster demand

11

REAL ESTATE AND CONSTRUCTION

Dubais mid-market real estate in Q1

Despite flattening in the overall market secondary residential market transactions remained

relatively stable in the first quarter of 2018 according to new data from brokerage firm Luxhabitat

According to the data 622 villas and 7050 apartments were transacted within the first quarter of

the year in both the secondary residential and off-plan market In the secondary market the total

volume of transactions amounted to AED 86 billion ($234 billion) compared to AED 101 billion

($275 billion) in Q4 2017

In comparison off-plan transaction volumes and the number of transactions fell almost 28 percent

from the previous quarter to AED 58 billion ($158 billion)

Luxhabitat noted that the drop is likely due to the announcement that Dubai developers need their

projects to reach 50 percent completion before declaring their properties for sale as well as pay off

all the costs related to land

Property Monitor statistics show 80000 units are scheduled to be completed in 2018 with 2000

units each to be delivered in Downtown Dubai Business Bay Mohammed bin Rashid City and

Jumeirah Village Circle

ldquoWersquore also seeing more extended post-handover payment plans discounts and DLD waivers

from developersrdquo saidLuxhabitat associate director Brigitte Tenbergen

ldquoWhat I perceive as general sentiment is that buyers are overwhelmed with the amount of projects

and in no rush ndash they take their sweet time and are demanding discounts and waivers as they are

well aware that there is an oversupply of properties in the marketrdquo

Sally Ann Ghai another Luxhabitat associate director said that ldquowhile it is true that the attraction

of extended developer payment plans hook those buyers short of a 35 percent deposit for a AED 5

million plus home purchase only a review by the Central Bank on borrowing rules will truly support

a revival in the secondary marketrdquo

Additionally the Luxhabitat analysis found that the prime residential market in Q1 2018 totalled

AED 53 billion ($144 billion) with secondary villa sale volumes far exceeding off-plan sales

ldquoFor clients looking at a longer term investment they may realise more value from a cooled and

increasingly rational secondary market with sellers now reality checked in their asking prices

compared to developers who are front loading pricing in most prime off-plan developmentsrdquo

Ghai said

12

ldquoThe question is whether off-plan can hold these values on delivery under weight of supplyrdquo

Construction activity

Construction activity in Dubai will remain robust in the next two-and-a-half years with

developments related to Expo 2020 being one of the main driving force behind the sectors growth

According to latest data issued by BNC Network the total value of major Expo-related construction

projects reached Dh156 billion ($425 billion) by the end of March 31 2018 driven by both public

and private sectors The majority of these projects are poised to complete before Expo begins in

October 2020 resulting in massive job creation as well The development of Expo 2020 projects will

create a low-level skyline as compared to skyscrapers dominating Northern Dubai

In 2017 Dh11 billion worth of contracts were awarded by Expo 2020 The BNC Network data

showed that the total value of the top 10 active projects linked to Expo 2020 exceeded Dh120

billion ($327 billion) as of March 31 2018

A breakdown provided by BNC Network showed that Dh638 billion are spent on infrastructure and

transports Dh484 billion on commercial and residential housing projects and Dh4037 billion on

hospitality and theme parks

According to BNC Network expansion of Al Maktoum International Airport Phase 1 tops Dh2936

billion followed by Dh25 billion The Villages development at Dubai South Dh242 billion Dubai

Exhibition City and Dh106 billion Dubai Metro Red Line extension

Imran Farooq CEO Samana Developers said Expo 2020 is a game-changer for UAEs construction

and is an international trade platform not only for the construction sector but almost every industry

- be it real estate hospitality tourism airline and related industries

The rising pressure from developers and their competitors has increased the speed of

construction Developers are in a hurry to complete and deliver the projects before 2020 lest the

market loses its steam UAE construction outlook is brighter with Expo as JLLs 2018 report said

approximately 575000 new real estate units could enter the market until 2020 Farooq added

Overall the combined value of 11755 construction projects in the UAE crossed Dh3 trillion in

November 2017 BNC reported last year

Gidwani of BNC Network said Private sector contracts or developments will continue as the

companies own plans regardless of Expo 2020 For example major property developers Nakheel

Emaar Dubai Properties Deyaar Damac Azizi and Danube Properties will continue to invest in the

local economy - that wont be directly linked to Expo 2020

2

Contents

I PROJECTS amp INFRASTRUCTURE 3

Expo 2020 Dubai 3

Fujairah Intl Airport expansion project 4

Festival Plaza 4

I OIL SECTOR 6

New law regulating the petroleum sector in Ras al-Khaimah 6

Fujairah oil stocks 6

II NON OIL SECTOR 8

Fujairah GDP in 2017 8

Dubai Business conditions 8

Dubais private sector economy in March 9

REAL ESTATE AND CONSTRUCTION 11

Dubais mid-market real estate in Q1 11

Construction activity 12

FINANCES 13

Sharjah FDIs in 2017 13

TOURISM 14

Dubai hotel room rates 14

III MARKET TRENDS 16

1 Oil prices 16

2 Market General Index (DFMGI) 17

IV EVENTS 18

14th International Property Show 18

V REFERENCES 19

3

I PROJECTS amp INFRASTRUCTURE

Expo 2020 Dubai

Expo 2020 Dubai has signed global tech firm Cisco as its digital network partner

The partnership will see Cisco provide tailored digital connectivity for every visitor to the site on

any device - securely reliably and seamlessly Expo 2020 Dubai organisers said

Using its various lsquointelligent solutionsrsquo Cisco will link visitors participants devices applications

business processes and the Expo network into a lsquosmart sitersquo which organisers have said will

make Expo 2020rsquos technology infrastructure the most advanced in World Exporsquos 167-year

history

Whether it is sharing images of Expo 2020rsquos architecture and exhibits or using the official app to

navigate the site check queue lengths or order food people who visit the global destination

during the six months of the event will be fully connected

The partnership will see the first rollout of lsquoCisco Visionrsquo outside the US which will provide

dynamic signage and high-definition digital content and video delivering information and

experiences throughout the Expo in a way that enhances attendee engagement Expo 2020 Dubai

said

It will also enable more than 200 international and other participants to offer compelling

interactive experiences and communicate with visitors and employees in new and more impactful

ways

The collaboration will also see Cisco provide other services solutions and equipment that allow

systems across the Expo 2020 site to engage and securely communicate

has extensive experience in delivering digitally-driven experiences for events on a global scale

Cisco was a strategic partner at both Expo Shanghai 2010 and Expo Milano 2015 as well as the

official networking supplier for both the London 2012 and Rio 2016 Olympic and Paralympic

Games

The tech firm becomes the ninth Expo 2020 Dubai Official Premier Partner alongside Emirates

airline Accenture DP World Emirates NBD Etisalat Nissan SAP and Siemens The Official Partners

4

so far named are DEWA and UPS More partnerships are expected to be announced in the coming

months

Fujairah Intl Airport expansion project

Abu Dhabi Airports announced on Monday the signing of a contract with the joint venture of

Orascom Construction Co and Al Sahraa General Transport amp Clearance Abu Dhabi for the

expansion program of the Fujairah International Airport

The scope of the contract includes design and construction of a new parallel taxiway and

emergency runway with airfield lighting system plus the upgrade and extension of existing runway

and connecting taxiways

The deal also includes a new air traffic control tower and air traffic management systems in

addition to an Aircraft Rescue and Fire Fighting Sub-station along with other associated

infrastructure works

The contract award comes as a result of an agreement signed between Abu Dhabi Airports and the

Department of Civil Aviation of Fujairah in 2014 As per the MOU Abu Dhabi Airports would lend

its resources in the planning stage and also provide administrative assistance during construction

Festival Plaza

Al-Futtaim has revealed that its new lifestyle shopping destination in Jebel Ali will be called Festival

Plaza

The name has been chosen in recognition of Al-Futtaimrsquos successful Festival City Malls brand

located across the MENA region

Following its ground-breaking in March 2017 the mall is planned to open in the fourth quarter of

2019 the company said in a statement

It added that Festival Plaza will have a retail mix to appeal to visitors looking for the best in lifestyle

home food hypermarket and entertainment brands The two biggest announcements so far have

been new concept stores for both IKEA and Al-Futtaim ACE

5

Timothy Earnest group director Retail Malls said ldquoWith our sights keenly fixed on the future

development of Dubai and our confidence in the growth potential during the build up to Expo

2020 we see Festival Plaza becoming a major urban lifestyle destination

ldquoSince we broke ground last year we have received a hugely positive response from residents and

keen interest from retail groups both internationally and in the UAE and are very much looking

forward to welcoming themrdquo

The new development will welcome Dubairsquos second IKEA which will be the brandrsquos newest

concept store globally and will in total host approximately 100 retail outlets a food court and cafeacute-

style dining entertainment and a hypermarket

The location of the new development will be inside wasl Gate a masterplanned community which

will also include a world-class sports complex K-12 schools with international curriculums as well

as a central park connecting the communityrsquos commercial and residential neighbourhoods

6

I OIL SECTOR

New law regulating the petroleum sector in Ras al-Khaimah

HH Sheikh Saud bin Saqr Al Qasimi Supreme Council Member and Ruler of Ras al-Khaimah has

issued a law regulating the petroleum sector in the emirate of Ras al-Khaimah

The law aims at regulating the exploration and commercial use of the petroleum resources within

the territories of Ras al-Khaimah in a way that will benefit the national economy and provide a

conducive environment to attract investments in the sector

It also provides a regulatory framework for the exploration development and commercial

operations of petroleum resources in Ras al-Khaimah

Fujairah oil stocks

Total oil product stocks in Fujairah were 18620 million barrels as of Monday up 122 percent from

a week earlier after a sharp rise in middle distillate numbers according to latest data from the

Fujairah Energy Data Committee or FEDCom

Stocks of middle distillates surged 642 percent on the week to 2855 million barrels Bullish

sentiment in the Asian jet fuel market intensified supported by supply tightness for prompt barrels

as a result of ongoing refinery turnarounds in Asia and the Middle East SampP Global Platts Analytics

said in a report

In addition still-workable arbitrage economics coupled with declining voyage rates pushed jet fuel

barrels from the Gulf and India to Europe as well as from South Korea to the US west coast This

further exacerbated the tight supply the report said

Demand for jet barrels in the Arab Gulf was seen as strong Fundamentals in the Asian gasoil

market were stable and unchanged with softer demand for ULSD and higher freight rates making

it uneconomic to ship cargoes to the west of Suez despite heightened post-winter demand in

Europe

Stocks of heavy distillates and residues also rebounded by 20 percent to 8456 million barrels

Buying sentiment in the Fujairah bunker fuel markets was strong at the start of the week but

retreated on a rise in outright prices Some sellers reported steady levels of inquiries but said bids

were relatively unattractive for deals Fujairah-delivered 380 CST bunker fuel was assessed at

US$39325mt on Tuesday up by US$625mt from Monday

7

Stocks of light distillates fell by 64 percent week-on-week to 7309 million barrels Fundamentals in

the Asian gasoline market seemed to be weakening on excess supplies and tepid demand within

the region with no increase in spot demand seen lately Platts Analytics said

In a potential blow to refiners in India and East Asia Irans oil minister Bijan Zanganeh announced

this week that his country will cease imports of gasoline by the fourth quarter of the year given the

near-completion of Phase II of the Gulf Star refinery

8

II NON OIL SECTOR

Fujairah GDP in 2017

The Annual Statistical Book 2017 of Fujairah showed that the emiratersquos GDP reached AED154

billion in 2017

The value of direct foreign trade amounted to AED64 billion and trade via its free zone amounted

to AED8 billion totalling AED144 billion

The 21st edition of the book issued by the Fujairah Statistics Centre yesterday highlighted the

various developments taking place in the emirate in light of the directives of HH Sheikh Hamad

bin Mohammed Al Sharqi Supreme Council Member and Ruler of Fujairah and the close

monitoring of HH Sheikh Mohammed bin Hamad bin Mohammed Al Sharqi Crown Prince of

Fujairah

The book also said that the emiratersquos population at the end of 2017 reached 236810 while the

previous year witnessed 3924 births and 260 deaths Fujairah International Airport also handled

9204 flights while the number of hotel guests in the emirate reached 706320 The emirate has 31

banks and currency exchange facilities

The number of employees of federal and local government departments reached 15860 while the

number of public and private schools reached 70 with the total number of students amounting to

40700 The emirate also has eight universities and higher education colleges 244 industrial

establishments and 12320 com

Dubai Business conditions

Emirates NBD said that anecdotal evidence suggests that significant inflows of new orders led to

the rising business activity

Business conditions across Dubairsquos non-oil private sector improved in March with sharp growth

in output and new work according to Emirates NBDrsquos seasonally adjusted Dubai Economy

Tracker

According to the data non-oil private sector firms noted a sharp level of output in March albeit at

a slower rate than seen in the previous two services

Emirates NBD said that anecdotal evidence suggests that significant inflows of new orders led to

the rising business activity

9

The data showed that job shedding returned to the non-oil private sector for the first time in 13

months following unchanged employment levels in the preceding survey period The overall rate

of contraction however was found to be marginal

New work grew during March with many firms adopting successful promotional strategies

extending the current sequence of improvement to 25 months

Additionally despite falling to a seven-month low business confidence was found to have

remained strong overall with optimism underpinned by new project wins and expectations of an

upturn in economic conditions

For the first time since February 2016 average cost burdens faced by the non-oil private sector fell

with many respondents reporting price discounting at suppliers The rate of decline however was

fractional overall

Prices charged were also found to have dropped in March ending a three-month sequence of

inflation According to Emirates NBD many businesses reported that output charges have been

reduced to help stimulate client demand

ldquoWhile the Dubai Economy Tracker fell to a four-month low it remained firmly in expansionary

territory with travel and tourism the outperformerrdquo said Daniel Richards MENA economist at

Emirates NBD ldquoThat being said firms continue to make price discounts in order to bolster

demandrdquo

Richards added that squeezed margins appear to be taking their toll on employment

ldquoNevertheless we anticipate faster growth in the Dubai economy this year bolstered by ongoing

infrastructure projects and greater government spendingrdquo he added

Dubais private sector economy in March

A key gauge of Dubais non-oil private sector economy eased slightly in March to the lowest

increase in four months but it remained in growth territory as business conditions improved

But employment slipped into contraction for the first time since February 2017 as squeezed

margins took toll on jobs

10

The seasonally adjusted Emirates NBD Dubai Economy Tracker Index ndash a monthly composite

indicator designed to reflect business conditions ndash slipped to 553 down from 558 in February A

reading above 50 suggests the non-oil economy is growing while a reading below 50 suggests a

contraction

The March figure for the overall economy of the emirate indicated a marked expansion that was in

line with the historical average Growth was also recorded across all three sub-sectors monitored in

the survey led by travel and tourism which ended March at 567 followed by wholesale and retail

at 563 and construction at 532

ldquoWhile the Dubai Economy Tracker fell to a four-month low hellip it remained firmly in expansionary

territory with travel and tourism the outperformerrdquo said Daniel Richards the Middle East and

North Africa economist at Emirates NBD

ldquoWe anticipate faster growth in the Dubai economy this year bolstered by ongoing infrastructure

projects and greater government spendingrdquo

Dubai which has announced record expansionary budget this year is preparing to spend billions

of dollars to complete Expo 2020-related projects The commercial and tourism hub which is

expected to receive millions of visitors during the six-month global fair is witnessing an

improvement in business sentiment as its economy recovers after a three-year oil price slump

Non-oil private sector companies noted a sharp output growth during March but at a slower rate

than that seen in the previous two surveys According to anecdotal evidence strong inflows of new

orders were linked to rising business activity the Emirates NBD survey noted

Successful promotional strategies helped Dubai companies to continue to generate strong growth

of new work in March The rate of expansion during the latest survey was broadly in line with the

average seen over the last two years

Despite easing to a seven-month low in March business confidence towards future growth

prospects remained strongly positive overall

ldquoOptimism was underpinned by new project wins and an expected upturn in economic conditionsrdquo

the survey said

In terms of inflation average cost burdens faced by the non-oil private sector firms fell for the first

time since February 2016 The rate of decline however was fractional overall Prices charged also

dropped at a moderate pace in March ending a three-month sequence of inflation That being said

companies continue to offer price discounts in order to bolster demand

11

REAL ESTATE AND CONSTRUCTION

Dubais mid-market real estate in Q1

Despite flattening in the overall market secondary residential market transactions remained

relatively stable in the first quarter of 2018 according to new data from brokerage firm Luxhabitat

According to the data 622 villas and 7050 apartments were transacted within the first quarter of

the year in both the secondary residential and off-plan market In the secondary market the total

volume of transactions amounted to AED 86 billion ($234 billion) compared to AED 101 billion

($275 billion) in Q4 2017

In comparison off-plan transaction volumes and the number of transactions fell almost 28 percent

from the previous quarter to AED 58 billion ($158 billion)

Luxhabitat noted that the drop is likely due to the announcement that Dubai developers need their

projects to reach 50 percent completion before declaring their properties for sale as well as pay off

all the costs related to land

Property Monitor statistics show 80000 units are scheduled to be completed in 2018 with 2000

units each to be delivered in Downtown Dubai Business Bay Mohammed bin Rashid City and

Jumeirah Village Circle

ldquoWersquore also seeing more extended post-handover payment plans discounts and DLD waivers

from developersrdquo saidLuxhabitat associate director Brigitte Tenbergen

ldquoWhat I perceive as general sentiment is that buyers are overwhelmed with the amount of projects

and in no rush ndash they take their sweet time and are demanding discounts and waivers as they are

well aware that there is an oversupply of properties in the marketrdquo

Sally Ann Ghai another Luxhabitat associate director said that ldquowhile it is true that the attraction

of extended developer payment plans hook those buyers short of a 35 percent deposit for a AED 5

million plus home purchase only a review by the Central Bank on borrowing rules will truly support

a revival in the secondary marketrdquo

Additionally the Luxhabitat analysis found that the prime residential market in Q1 2018 totalled

AED 53 billion ($144 billion) with secondary villa sale volumes far exceeding off-plan sales

ldquoFor clients looking at a longer term investment they may realise more value from a cooled and

increasingly rational secondary market with sellers now reality checked in their asking prices

compared to developers who are front loading pricing in most prime off-plan developmentsrdquo

Ghai said

12

ldquoThe question is whether off-plan can hold these values on delivery under weight of supplyrdquo

Construction activity

Construction activity in Dubai will remain robust in the next two-and-a-half years with

developments related to Expo 2020 being one of the main driving force behind the sectors growth

According to latest data issued by BNC Network the total value of major Expo-related construction

projects reached Dh156 billion ($425 billion) by the end of March 31 2018 driven by both public

and private sectors The majority of these projects are poised to complete before Expo begins in

October 2020 resulting in massive job creation as well The development of Expo 2020 projects will

create a low-level skyline as compared to skyscrapers dominating Northern Dubai

In 2017 Dh11 billion worth of contracts were awarded by Expo 2020 The BNC Network data

showed that the total value of the top 10 active projects linked to Expo 2020 exceeded Dh120

billion ($327 billion) as of March 31 2018

A breakdown provided by BNC Network showed that Dh638 billion are spent on infrastructure and

transports Dh484 billion on commercial and residential housing projects and Dh4037 billion on

hospitality and theme parks

According to BNC Network expansion of Al Maktoum International Airport Phase 1 tops Dh2936

billion followed by Dh25 billion The Villages development at Dubai South Dh242 billion Dubai

Exhibition City and Dh106 billion Dubai Metro Red Line extension

Imran Farooq CEO Samana Developers said Expo 2020 is a game-changer for UAEs construction

and is an international trade platform not only for the construction sector but almost every industry

- be it real estate hospitality tourism airline and related industries

The rising pressure from developers and their competitors has increased the speed of

construction Developers are in a hurry to complete and deliver the projects before 2020 lest the

market loses its steam UAE construction outlook is brighter with Expo as JLLs 2018 report said

approximately 575000 new real estate units could enter the market until 2020 Farooq added

Overall the combined value of 11755 construction projects in the UAE crossed Dh3 trillion in

November 2017 BNC reported last year

Gidwani of BNC Network said Private sector contracts or developments will continue as the

companies own plans regardless of Expo 2020 For example major property developers Nakheel

Emaar Dubai Properties Deyaar Damac Azizi and Danube Properties will continue to invest in the

local economy - that wont be directly linked to Expo 2020

3

I PROJECTS amp INFRASTRUCTURE

Expo 2020 Dubai

Expo 2020 Dubai has signed global tech firm Cisco as its digital network partner

The partnership will see Cisco provide tailored digital connectivity for every visitor to the site on

any device - securely reliably and seamlessly Expo 2020 Dubai organisers said

Using its various lsquointelligent solutionsrsquo Cisco will link visitors participants devices applications

business processes and the Expo network into a lsquosmart sitersquo which organisers have said will

make Expo 2020rsquos technology infrastructure the most advanced in World Exporsquos 167-year

history

Whether it is sharing images of Expo 2020rsquos architecture and exhibits or using the official app to

navigate the site check queue lengths or order food people who visit the global destination

during the six months of the event will be fully connected

The partnership will see the first rollout of lsquoCisco Visionrsquo outside the US which will provide

dynamic signage and high-definition digital content and video delivering information and

experiences throughout the Expo in a way that enhances attendee engagement Expo 2020 Dubai

said

It will also enable more than 200 international and other participants to offer compelling

interactive experiences and communicate with visitors and employees in new and more impactful

ways

The collaboration will also see Cisco provide other services solutions and equipment that allow

systems across the Expo 2020 site to engage and securely communicate

has extensive experience in delivering digitally-driven experiences for events on a global scale

Cisco was a strategic partner at both Expo Shanghai 2010 and Expo Milano 2015 as well as the

official networking supplier for both the London 2012 and Rio 2016 Olympic and Paralympic

Games

The tech firm becomes the ninth Expo 2020 Dubai Official Premier Partner alongside Emirates

airline Accenture DP World Emirates NBD Etisalat Nissan SAP and Siemens The Official Partners

4

so far named are DEWA and UPS More partnerships are expected to be announced in the coming

months

Fujairah Intl Airport expansion project

Abu Dhabi Airports announced on Monday the signing of a contract with the joint venture of

Orascom Construction Co and Al Sahraa General Transport amp Clearance Abu Dhabi for the

expansion program of the Fujairah International Airport

The scope of the contract includes design and construction of a new parallel taxiway and

emergency runway with airfield lighting system plus the upgrade and extension of existing runway

and connecting taxiways

The deal also includes a new air traffic control tower and air traffic management systems in

addition to an Aircraft Rescue and Fire Fighting Sub-station along with other associated

infrastructure works

The contract award comes as a result of an agreement signed between Abu Dhabi Airports and the

Department of Civil Aviation of Fujairah in 2014 As per the MOU Abu Dhabi Airports would lend

its resources in the planning stage and also provide administrative assistance during construction

Festival Plaza

Al-Futtaim has revealed that its new lifestyle shopping destination in Jebel Ali will be called Festival

Plaza

The name has been chosen in recognition of Al-Futtaimrsquos successful Festival City Malls brand

located across the MENA region

Following its ground-breaking in March 2017 the mall is planned to open in the fourth quarter of

2019 the company said in a statement

It added that Festival Plaza will have a retail mix to appeal to visitors looking for the best in lifestyle

home food hypermarket and entertainment brands The two biggest announcements so far have

been new concept stores for both IKEA and Al-Futtaim ACE

5

Timothy Earnest group director Retail Malls said ldquoWith our sights keenly fixed on the future

development of Dubai and our confidence in the growth potential during the build up to Expo

2020 we see Festival Plaza becoming a major urban lifestyle destination

ldquoSince we broke ground last year we have received a hugely positive response from residents and

keen interest from retail groups both internationally and in the UAE and are very much looking

forward to welcoming themrdquo

The new development will welcome Dubairsquos second IKEA which will be the brandrsquos newest

concept store globally and will in total host approximately 100 retail outlets a food court and cafeacute-

style dining entertainment and a hypermarket

The location of the new development will be inside wasl Gate a masterplanned community which

will also include a world-class sports complex K-12 schools with international curriculums as well

as a central park connecting the communityrsquos commercial and residential neighbourhoods

6

I OIL SECTOR

New law regulating the petroleum sector in Ras al-Khaimah

HH Sheikh Saud bin Saqr Al Qasimi Supreme Council Member and Ruler of Ras al-Khaimah has

issued a law regulating the petroleum sector in the emirate of Ras al-Khaimah

The law aims at regulating the exploration and commercial use of the petroleum resources within

the territories of Ras al-Khaimah in a way that will benefit the national economy and provide a

conducive environment to attract investments in the sector

It also provides a regulatory framework for the exploration development and commercial

operations of petroleum resources in Ras al-Khaimah

Fujairah oil stocks

Total oil product stocks in Fujairah were 18620 million barrels as of Monday up 122 percent from

a week earlier after a sharp rise in middle distillate numbers according to latest data from the

Fujairah Energy Data Committee or FEDCom

Stocks of middle distillates surged 642 percent on the week to 2855 million barrels Bullish

sentiment in the Asian jet fuel market intensified supported by supply tightness for prompt barrels

as a result of ongoing refinery turnarounds in Asia and the Middle East SampP Global Platts Analytics

said in a report

In addition still-workable arbitrage economics coupled with declining voyage rates pushed jet fuel

barrels from the Gulf and India to Europe as well as from South Korea to the US west coast This

further exacerbated the tight supply the report said

Demand for jet barrels in the Arab Gulf was seen as strong Fundamentals in the Asian gasoil

market were stable and unchanged with softer demand for ULSD and higher freight rates making

it uneconomic to ship cargoes to the west of Suez despite heightened post-winter demand in

Europe

Stocks of heavy distillates and residues also rebounded by 20 percent to 8456 million barrels

Buying sentiment in the Fujairah bunker fuel markets was strong at the start of the week but

retreated on a rise in outright prices Some sellers reported steady levels of inquiries but said bids

were relatively unattractive for deals Fujairah-delivered 380 CST bunker fuel was assessed at

US$39325mt on Tuesday up by US$625mt from Monday

7

Stocks of light distillates fell by 64 percent week-on-week to 7309 million barrels Fundamentals in

the Asian gasoline market seemed to be weakening on excess supplies and tepid demand within

the region with no increase in spot demand seen lately Platts Analytics said

In a potential blow to refiners in India and East Asia Irans oil minister Bijan Zanganeh announced

this week that his country will cease imports of gasoline by the fourth quarter of the year given the

near-completion of Phase II of the Gulf Star refinery

8

II NON OIL SECTOR

Fujairah GDP in 2017

The Annual Statistical Book 2017 of Fujairah showed that the emiratersquos GDP reached AED154

billion in 2017

The value of direct foreign trade amounted to AED64 billion and trade via its free zone amounted

to AED8 billion totalling AED144 billion

The 21st edition of the book issued by the Fujairah Statistics Centre yesterday highlighted the

various developments taking place in the emirate in light of the directives of HH Sheikh Hamad

bin Mohammed Al Sharqi Supreme Council Member and Ruler of Fujairah and the close

monitoring of HH Sheikh Mohammed bin Hamad bin Mohammed Al Sharqi Crown Prince of

Fujairah

The book also said that the emiratersquos population at the end of 2017 reached 236810 while the

previous year witnessed 3924 births and 260 deaths Fujairah International Airport also handled

9204 flights while the number of hotel guests in the emirate reached 706320 The emirate has 31

banks and currency exchange facilities

The number of employees of federal and local government departments reached 15860 while the

number of public and private schools reached 70 with the total number of students amounting to

40700 The emirate also has eight universities and higher education colleges 244 industrial

establishments and 12320 com

Dubai Business conditions

Emirates NBD said that anecdotal evidence suggests that significant inflows of new orders led to

the rising business activity

Business conditions across Dubairsquos non-oil private sector improved in March with sharp growth

in output and new work according to Emirates NBDrsquos seasonally adjusted Dubai Economy

Tracker

According to the data non-oil private sector firms noted a sharp level of output in March albeit at

a slower rate than seen in the previous two services

Emirates NBD said that anecdotal evidence suggests that significant inflows of new orders led to

the rising business activity

9

The data showed that job shedding returned to the non-oil private sector for the first time in 13

months following unchanged employment levels in the preceding survey period The overall rate

of contraction however was found to be marginal

New work grew during March with many firms adopting successful promotional strategies

extending the current sequence of improvement to 25 months

Additionally despite falling to a seven-month low business confidence was found to have

remained strong overall with optimism underpinned by new project wins and expectations of an

upturn in economic conditions

For the first time since February 2016 average cost burdens faced by the non-oil private sector fell

with many respondents reporting price discounting at suppliers The rate of decline however was

fractional overall

Prices charged were also found to have dropped in March ending a three-month sequence of

inflation According to Emirates NBD many businesses reported that output charges have been

reduced to help stimulate client demand

ldquoWhile the Dubai Economy Tracker fell to a four-month low it remained firmly in expansionary

territory with travel and tourism the outperformerrdquo said Daniel Richards MENA economist at

Emirates NBD ldquoThat being said firms continue to make price discounts in order to bolster

demandrdquo

Richards added that squeezed margins appear to be taking their toll on employment

ldquoNevertheless we anticipate faster growth in the Dubai economy this year bolstered by ongoing

infrastructure projects and greater government spendingrdquo he added

Dubais private sector economy in March

A key gauge of Dubais non-oil private sector economy eased slightly in March to the lowest

increase in four months but it remained in growth territory as business conditions improved

But employment slipped into contraction for the first time since February 2017 as squeezed

margins took toll on jobs

10

The seasonally adjusted Emirates NBD Dubai Economy Tracker Index ndash a monthly composite

indicator designed to reflect business conditions ndash slipped to 553 down from 558 in February A

reading above 50 suggests the non-oil economy is growing while a reading below 50 suggests a

contraction

The March figure for the overall economy of the emirate indicated a marked expansion that was in

line with the historical average Growth was also recorded across all three sub-sectors monitored in

the survey led by travel and tourism which ended March at 567 followed by wholesale and retail

at 563 and construction at 532

ldquoWhile the Dubai Economy Tracker fell to a four-month low hellip it remained firmly in expansionary

territory with travel and tourism the outperformerrdquo said Daniel Richards the Middle East and

North Africa economist at Emirates NBD

ldquoWe anticipate faster growth in the Dubai economy this year bolstered by ongoing infrastructure

projects and greater government spendingrdquo

Dubai which has announced record expansionary budget this year is preparing to spend billions

of dollars to complete Expo 2020-related projects The commercial and tourism hub which is

expected to receive millions of visitors during the six-month global fair is witnessing an

improvement in business sentiment as its economy recovers after a three-year oil price slump

Non-oil private sector companies noted a sharp output growth during March but at a slower rate

than that seen in the previous two surveys According to anecdotal evidence strong inflows of new

orders were linked to rising business activity the Emirates NBD survey noted

Successful promotional strategies helped Dubai companies to continue to generate strong growth

of new work in March The rate of expansion during the latest survey was broadly in line with the

average seen over the last two years

Despite easing to a seven-month low in March business confidence towards future growth

prospects remained strongly positive overall

ldquoOptimism was underpinned by new project wins and an expected upturn in economic conditionsrdquo

the survey said

In terms of inflation average cost burdens faced by the non-oil private sector firms fell for the first

time since February 2016 The rate of decline however was fractional overall Prices charged also

dropped at a moderate pace in March ending a three-month sequence of inflation That being said

companies continue to offer price discounts in order to bolster demand

11

REAL ESTATE AND CONSTRUCTION

Dubais mid-market real estate in Q1

Despite flattening in the overall market secondary residential market transactions remained

relatively stable in the first quarter of 2018 according to new data from brokerage firm Luxhabitat

According to the data 622 villas and 7050 apartments were transacted within the first quarter of

the year in both the secondary residential and off-plan market In the secondary market the total

volume of transactions amounted to AED 86 billion ($234 billion) compared to AED 101 billion

($275 billion) in Q4 2017

In comparison off-plan transaction volumes and the number of transactions fell almost 28 percent

from the previous quarter to AED 58 billion ($158 billion)

Luxhabitat noted that the drop is likely due to the announcement that Dubai developers need their

projects to reach 50 percent completion before declaring their properties for sale as well as pay off

all the costs related to land

Property Monitor statistics show 80000 units are scheduled to be completed in 2018 with 2000

units each to be delivered in Downtown Dubai Business Bay Mohammed bin Rashid City and

Jumeirah Village Circle

ldquoWersquore also seeing more extended post-handover payment plans discounts and DLD waivers

from developersrdquo saidLuxhabitat associate director Brigitte Tenbergen

ldquoWhat I perceive as general sentiment is that buyers are overwhelmed with the amount of projects

and in no rush ndash they take their sweet time and are demanding discounts and waivers as they are

well aware that there is an oversupply of properties in the marketrdquo

Sally Ann Ghai another Luxhabitat associate director said that ldquowhile it is true that the attraction

of extended developer payment plans hook those buyers short of a 35 percent deposit for a AED 5

million plus home purchase only a review by the Central Bank on borrowing rules will truly support

a revival in the secondary marketrdquo

Additionally the Luxhabitat analysis found that the prime residential market in Q1 2018 totalled

AED 53 billion ($144 billion) with secondary villa sale volumes far exceeding off-plan sales

ldquoFor clients looking at a longer term investment they may realise more value from a cooled and

increasingly rational secondary market with sellers now reality checked in their asking prices

compared to developers who are front loading pricing in most prime off-plan developmentsrdquo

Ghai said

12

ldquoThe question is whether off-plan can hold these values on delivery under weight of supplyrdquo

Construction activity

Construction activity in Dubai will remain robust in the next two-and-a-half years with

developments related to Expo 2020 being one of the main driving force behind the sectors growth

According to latest data issued by BNC Network the total value of major Expo-related construction

projects reached Dh156 billion ($425 billion) by the end of March 31 2018 driven by both public

and private sectors The majority of these projects are poised to complete before Expo begins in

October 2020 resulting in massive job creation as well The development of Expo 2020 projects will

create a low-level skyline as compared to skyscrapers dominating Northern Dubai

In 2017 Dh11 billion worth of contracts were awarded by Expo 2020 The BNC Network data

showed that the total value of the top 10 active projects linked to Expo 2020 exceeded Dh120

billion ($327 billion) as of March 31 2018

A breakdown provided by BNC Network showed that Dh638 billion are spent on infrastructure and

transports Dh484 billion on commercial and residential housing projects and Dh4037 billion on

hospitality and theme parks

According to BNC Network expansion of Al Maktoum International Airport Phase 1 tops Dh2936

billion followed by Dh25 billion The Villages development at Dubai South Dh242 billion Dubai

Exhibition City and Dh106 billion Dubai Metro Red Line extension

Imran Farooq CEO Samana Developers said Expo 2020 is a game-changer for UAEs construction

and is an international trade platform not only for the construction sector but almost every industry

- be it real estate hospitality tourism airline and related industries

The rising pressure from developers and their competitors has increased the speed of

construction Developers are in a hurry to complete and deliver the projects before 2020 lest the

market loses its steam UAE construction outlook is brighter with Expo as JLLs 2018 report said

approximately 575000 new real estate units could enter the market until 2020 Farooq added

Overall the combined value of 11755 construction projects in the UAE crossed Dh3 trillion in

November 2017 BNC reported last year

Gidwani of BNC Network said Private sector contracts or developments will continue as the

companies own plans regardless of Expo 2020 For example major property developers Nakheel

Emaar Dubai Properties Deyaar Damac Azizi and Danube Properties will continue to invest in the

local economy - that wont be directly linked to Expo 2020

4

so far named are DEWA and UPS More partnerships are expected to be announced in the coming

months

Fujairah Intl Airport expansion project

Abu Dhabi Airports announced on Monday the signing of a contract with the joint venture of

Orascom Construction Co and Al Sahraa General Transport amp Clearance Abu Dhabi for the

expansion program of the Fujairah International Airport

The scope of the contract includes design and construction of a new parallel taxiway and

emergency runway with airfield lighting system plus the upgrade and extension of existing runway

and connecting taxiways

The deal also includes a new air traffic control tower and air traffic management systems in

addition to an Aircraft Rescue and Fire Fighting Sub-station along with other associated

infrastructure works

The contract award comes as a result of an agreement signed between Abu Dhabi Airports and the

Department of Civil Aviation of Fujairah in 2014 As per the MOU Abu Dhabi Airports would lend

its resources in the planning stage and also provide administrative assistance during construction

Festival Plaza

Al-Futtaim has revealed that its new lifestyle shopping destination in Jebel Ali will be called Festival

Plaza

The name has been chosen in recognition of Al-Futtaimrsquos successful Festival City Malls brand

located across the MENA region

Following its ground-breaking in March 2017 the mall is planned to open in the fourth quarter of

2019 the company said in a statement

It added that Festival Plaza will have a retail mix to appeal to visitors looking for the best in lifestyle

home food hypermarket and entertainment brands The two biggest announcements so far have

been new concept stores for both IKEA and Al-Futtaim ACE

5

Timothy Earnest group director Retail Malls said ldquoWith our sights keenly fixed on the future

development of Dubai and our confidence in the growth potential during the build up to Expo

2020 we see Festival Plaza becoming a major urban lifestyle destination

ldquoSince we broke ground last year we have received a hugely positive response from residents and

keen interest from retail groups both internationally and in the UAE and are very much looking

forward to welcoming themrdquo

The new development will welcome Dubairsquos second IKEA which will be the brandrsquos newest

concept store globally and will in total host approximately 100 retail outlets a food court and cafeacute-

style dining entertainment and a hypermarket

The location of the new development will be inside wasl Gate a masterplanned community which

will also include a world-class sports complex K-12 schools with international curriculums as well

as a central park connecting the communityrsquos commercial and residential neighbourhoods

6

I OIL SECTOR

New law regulating the petroleum sector in Ras al-Khaimah

HH Sheikh Saud bin Saqr Al Qasimi Supreme Council Member and Ruler of Ras al-Khaimah has

issued a law regulating the petroleum sector in the emirate of Ras al-Khaimah

The law aims at regulating the exploration and commercial use of the petroleum resources within

the territories of Ras al-Khaimah in a way that will benefit the national economy and provide a

conducive environment to attract investments in the sector

It also provides a regulatory framework for the exploration development and commercial

operations of petroleum resources in Ras al-Khaimah

Fujairah oil stocks

Total oil product stocks in Fujairah were 18620 million barrels as of Monday up 122 percent from

a week earlier after a sharp rise in middle distillate numbers according to latest data from the

Fujairah Energy Data Committee or FEDCom

Stocks of middle distillates surged 642 percent on the week to 2855 million barrels Bullish

sentiment in the Asian jet fuel market intensified supported by supply tightness for prompt barrels

as a result of ongoing refinery turnarounds in Asia and the Middle East SampP Global Platts Analytics

said in a report

In addition still-workable arbitrage economics coupled with declining voyage rates pushed jet fuel

barrels from the Gulf and India to Europe as well as from South Korea to the US west coast This

further exacerbated the tight supply the report said

Demand for jet barrels in the Arab Gulf was seen as strong Fundamentals in the Asian gasoil

market were stable and unchanged with softer demand for ULSD and higher freight rates making

it uneconomic to ship cargoes to the west of Suez despite heightened post-winter demand in

Europe

Stocks of heavy distillates and residues also rebounded by 20 percent to 8456 million barrels

Buying sentiment in the Fujairah bunker fuel markets was strong at the start of the week but

retreated on a rise in outright prices Some sellers reported steady levels of inquiries but said bids

were relatively unattractive for deals Fujairah-delivered 380 CST bunker fuel was assessed at

US$39325mt on Tuesday up by US$625mt from Monday

7

Stocks of light distillates fell by 64 percent week-on-week to 7309 million barrels Fundamentals in

the Asian gasoline market seemed to be weakening on excess supplies and tepid demand within

the region with no increase in spot demand seen lately Platts Analytics said

In a potential blow to refiners in India and East Asia Irans oil minister Bijan Zanganeh announced

this week that his country will cease imports of gasoline by the fourth quarter of the year given the

near-completion of Phase II of the Gulf Star refinery

8

II NON OIL SECTOR

Fujairah GDP in 2017

The Annual Statistical Book 2017 of Fujairah showed that the emiratersquos GDP reached AED154

billion in 2017

The value of direct foreign trade amounted to AED64 billion and trade via its free zone amounted

to AED8 billion totalling AED144 billion

The 21st edition of the book issued by the Fujairah Statistics Centre yesterday highlighted the

various developments taking place in the emirate in light of the directives of HH Sheikh Hamad

bin Mohammed Al Sharqi Supreme Council Member and Ruler of Fujairah and the close

monitoring of HH Sheikh Mohammed bin Hamad bin Mohammed Al Sharqi Crown Prince of

Fujairah

The book also said that the emiratersquos population at the end of 2017 reached 236810 while the

previous year witnessed 3924 births and 260 deaths Fujairah International Airport also handled

9204 flights while the number of hotel guests in the emirate reached 706320 The emirate has 31

banks and currency exchange facilities

The number of employees of federal and local government departments reached 15860 while the

number of public and private schools reached 70 with the total number of students amounting to

40700 The emirate also has eight universities and higher education colleges 244 industrial

establishments and 12320 com

Dubai Business conditions

Emirates NBD said that anecdotal evidence suggests that significant inflows of new orders led to

the rising business activity

Business conditions across Dubairsquos non-oil private sector improved in March with sharp growth

in output and new work according to Emirates NBDrsquos seasonally adjusted Dubai Economy

Tracker

According to the data non-oil private sector firms noted a sharp level of output in March albeit at

a slower rate than seen in the previous two services

Emirates NBD said that anecdotal evidence suggests that significant inflows of new orders led to

the rising business activity

9

The data showed that job shedding returned to the non-oil private sector for the first time in 13

months following unchanged employment levels in the preceding survey period The overall rate

of contraction however was found to be marginal

New work grew during March with many firms adopting successful promotional strategies

extending the current sequence of improvement to 25 months

Additionally despite falling to a seven-month low business confidence was found to have

remained strong overall with optimism underpinned by new project wins and expectations of an

upturn in economic conditions

For the first time since February 2016 average cost burdens faced by the non-oil private sector fell

with many respondents reporting price discounting at suppliers The rate of decline however was

fractional overall

Prices charged were also found to have dropped in March ending a three-month sequence of

inflation According to Emirates NBD many businesses reported that output charges have been

reduced to help stimulate client demand

ldquoWhile the Dubai Economy Tracker fell to a four-month low it remained firmly in expansionary

territory with travel and tourism the outperformerrdquo said Daniel Richards MENA economist at

Emirates NBD ldquoThat being said firms continue to make price discounts in order to bolster

demandrdquo

Richards added that squeezed margins appear to be taking their toll on employment

ldquoNevertheless we anticipate faster growth in the Dubai economy this year bolstered by ongoing

infrastructure projects and greater government spendingrdquo he added

Dubais private sector economy in March

A key gauge of Dubais non-oil private sector economy eased slightly in March to the lowest

increase in four months but it remained in growth territory as business conditions improved

But employment slipped into contraction for the first time since February 2017 as squeezed

margins took toll on jobs

10

The seasonally adjusted Emirates NBD Dubai Economy Tracker Index ndash a monthly composite

indicator designed to reflect business conditions ndash slipped to 553 down from 558 in February A

reading above 50 suggests the non-oil economy is growing while a reading below 50 suggests a

contraction

The March figure for the overall economy of the emirate indicated a marked expansion that was in

line with the historical average Growth was also recorded across all three sub-sectors monitored in

the survey led by travel and tourism which ended March at 567 followed by wholesale and retail

at 563 and construction at 532

ldquoWhile the Dubai Economy Tracker fell to a four-month low hellip it remained firmly in expansionary

territory with travel and tourism the outperformerrdquo said Daniel Richards the Middle East and

North Africa economist at Emirates NBD

ldquoWe anticipate faster growth in the Dubai economy this year bolstered by ongoing infrastructure

projects and greater government spendingrdquo

Dubai which has announced record expansionary budget this year is preparing to spend billions

of dollars to complete Expo 2020-related projects The commercial and tourism hub which is

expected to receive millions of visitors during the six-month global fair is witnessing an

improvement in business sentiment as its economy recovers after a three-year oil price slump

Non-oil private sector companies noted a sharp output growth during March but at a slower rate

than that seen in the previous two surveys According to anecdotal evidence strong inflows of new

orders were linked to rising business activity the Emirates NBD survey noted

Successful promotional strategies helped Dubai companies to continue to generate strong growth

of new work in March The rate of expansion during the latest survey was broadly in line with the

average seen over the last two years

Despite easing to a seven-month low in March business confidence towards future growth

prospects remained strongly positive overall

ldquoOptimism was underpinned by new project wins and an expected upturn in economic conditionsrdquo

the survey said

In terms of inflation average cost burdens faced by the non-oil private sector firms fell for the first

time since February 2016 The rate of decline however was fractional overall Prices charged also

dropped at a moderate pace in March ending a three-month sequence of inflation That being said

companies continue to offer price discounts in order to bolster demand

11

REAL ESTATE AND CONSTRUCTION

Dubais mid-market real estate in Q1

Despite flattening in the overall market secondary residential market transactions remained

relatively stable in the first quarter of 2018 according to new data from brokerage firm Luxhabitat

According to the data 622 villas and 7050 apartments were transacted within the first quarter of

the year in both the secondary residential and off-plan market In the secondary market the total

volume of transactions amounted to AED 86 billion ($234 billion) compared to AED 101 billion

($275 billion) in Q4 2017

In comparison off-plan transaction volumes and the number of transactions fell almost 28 percent

from the previous quarter to AED 58 billion ($158 billion)

Luxhabitat noted that the drop is likely due to the announcement that Dubai developers need their

projects to reach 50 percent completion before declaring their properties for sale as well as pay off

all the costs related to land

Property Monitor statistics show 80000 units are scheduled to be completed in 2018 with 2000

units each to be delivered in Downtown Dubai Business Bay Mohammed bin Rashid City and

Jumeirah Village Circle

ldquoWersquore also seeing more extended post-handover payment plans discounts and DLD waivers

from developersrdquo saidLuxhabitat associate director Brigitte Tenbergen

ldquoWhat I perceive as general sentiment is that buyers are overwhelmed with the amount of projects

and in no rush ndash they take their sweet time and are demanding discounts and waivers as they are

well aware that there is an oversupply of properties in the marketrdquo

Sally Ann Ghai another Luxhabitat associate director said that ldquowhile it is true that the attraction

of extended developer payment plans hook those buyers short of a 35 percent deposit for a AED 5

million plus home purchase only a review by the Central Bank on borrowing rules will truly support

a revival in the secondary marketrdquo

Additionally the Luxhabitat analysis found that the prime residential market in Q1 2018 totalled

AED 53 billion ($144 billion) with secondary villa sale volumes far exceeding off-plan sales

ldquoFor clients looking at a longer term investment they may realise more value from a cooled and

increasingly rational secondary market with sellers now reality checked in their asking prices

compared to developers who are front loading pricing in most prime off-plan developmentsrdquo

Ghai said

12

ldquoThe question is whether off-plan can hold these values on delivery under weight of supplyrdquo

Construction activity

Construction activity in Dubai will remain robust in the next two-and-a-half years with

developments related to Expo 2020 being one of the main driving force behind the sectors growth

According to latest data issued by BNC Network the total value of major Expo-related construction

projects reached Dh156 billion ($425 billion) by the end of March 31 2018 driven by both public

and private sectors The majority of these projects are poised to complete before Expo begins in

October 2020 resulting in massive job creation as well The development of Expo 2020 projects will

create a low-level skyline as compared to skyscrapers dominating Northern Dubai

In 2017 Dh11 billion worth of contracts were awarded by Expo 2020 The BNC Network data

showed that the total value of the top 10 active projects linked to Expo 2020 exceeded Dh120

billion ($327 billion) as of March 31 2018

A breakdown provided by BNC Network showed that Dh638 billion are spent on infrastructure and

transports Dh484 billion on commercial and residential housing projects and Dh4037 billion on

hospitality and theme parks

According to BNC Network expansion of Al Maktoum International Airport Phase 1 tops Dh2936

billion followed by Dh25 billion The Villages development at Dubai South Dh242 billion Dubai

Exhibition City and Dh106 billion Dubai Metro Red Line extension

Imran Farooq CEO Samana Developers said Expo 2020 is a game-changer for UAEs construction

and is an international trade platform not only for the construction sector but almost every industry

- be it real estate hospitality tourism airline and related industries

The rising pressure from developers and their competitors has increased the speed of

construction Developers are in a hurry to complete and deliver the projects before 2020 lest the

market loses its steam UAE construction outlook is brighter with Expo as JLLs 2018 report said

approximately 575000 new real estate units could enter the market until 2020 Farooq added

Overall the combined value of 11755 construction projects in the UAE crossed Dh3 trillion in

November 2017 BNC reported last year

Gidwani of BNC Network said Private sector contracts or developments will continue as the

companies own plans regardless of Expo 2020 For example major property developers Nakheel

Emaar Dubai Properties Deyaar Damac Azizi and Danube Properties will continue to invest in the

local economy - that wont be directly linked to Expo 2020

5

Timothy Earnest group director Retail Malls said ldquoWith our sights keenly fixed on the future

development of Dubai and our confidence in the growth potential during the build up to Expo

2020 we see Festival Plaza becoming a major urban lifestyle destination

ldquoSince we broke ground last year we have received a hugely positive response from residents and

keen interest from retail groups both internationally and in the UAE and are very much looking

forward to welcoming themrdquo

The new development will welcome Dubairsquos second IKEA which will be the brandrsquos newest

concept store globally and will in total host approximately 100 retail outlets a food court and cafeacute-

style dining entertainment and a hypermarket

The location of the new development will be inside wasl Gate a masterplanned community which

will also include a world-class sports complex K-12 schools with international curriculums as well

as a central park connecting the communityrsquos commercial and residential neighbourhoods

6

I OIL SECTOR

New law regulating the petroleum sector in Ras al-Khaimah

HH Sheikh Saud bin Saqr Al Qasimi Supreme Council Member and Ruler of Ras al-Khaimah has

issued a law regulating the petroleum sector in the emirate of Ras al-Khaimah

The law aims at regulating the exploration and commercial use of the petroleum resources within

the territories of Ras al-Khaimah in a way that will benefit the national economy and provide a

conducive environment to attract investments in the sector

It also provides a regulatory framework for the exploration development and commercial

operations of petroleum resources in Ras al-Khaimah

Fujairah oil stocks

Total oil product stocks in Fujairah were 18620 million barrels as of Monday up 122 percent from

a week earlier after a sharp rise in middle distillate numbers according to latest data from the

Fujairah Energy Data Committee or FEDCom

Stocks of middle distillates surged 642 percent on the week to 2855 million barrels Bullish

sentiment in the Asian jet fuel market intensified supported by supply tightness for prompt barrels

as a result of ongoing refinery turnarounds in Asia and the Middle East SampP Global Platts Analytics

said in a report

In addition still-workable arbitrage economics coupled with declining voyage rates pushed jet fuel

barrels from the Gulf and India to Europe as well as from South Korea to the US west coast This

further exacerbated the tight supply the report said

Demand for jet barrels in the Arab Gulf was seen as strong Fundamentals in the Asian gasoil

market were stable and unchanged with softer demand for ULSD and higher freight rates making

it uneconomic to ship cargoes to the west of Suez despite heightened post-winter demand in

Europe

Stocks of heavy distillates and residues also rebounded by 20 percent to 8456 million barrels

Buying sentiment in the Fujairah bunker fuel markets was strong at the start of the week but

retreated on a rise in outright prices Some sellers reported steady levels of inquiries but said bids

were relatively unattractive for deals Fujairah-delivered 380 CST bunker fuel was assessed at

US$39325mt on Tuesday up by US$625mt from Monday

7

Stocks of light distillates fell by 64 percent week-on-week to 7309 million barrels Fundamentals in

the Asian gasoline market seemed to be weakening on excess supplies and tepid demand within

the region with no increase in spot demand seen lately Platts Analytics said

In a potential blow to refiners in India and East Asia Irans oil minister Bijan Zanganeh announced

this week that his country will cease imports of gasoline by the fourth quarter of the year given the

near-completion of Phase II of the Gulf Star refinery

8

II NON OIL SECTOR

Fujairah GDP in 2017

The Annual Statistical Book 2017 of Fujairah showed that the emiratersquos GDP reached AED154

billion in 2017

The value of direct foreign trade amounted to AED64 billion and trade via its free zone amounted

to AED8 billion totalling AED144 billion

The 21st edition of the book issued by the Fujairah Statistics Centre yesterday highlighted the

various developments taking place in the emirate in light of the directives of HH Sheikh Hamad

bin Mohammed Al Sharqi Supreme Council Member and Ruler of Fujairah and the close

monitoring of HH Sheikh Mohammed bin Hamad bin Mohammed Al Sharqi Crown Prince of

Fujairah

The book also said that the emiratersquos population at the end of 2017 reached 236810 while the

previous year witnessed 3924 births and 260 deaths Fujairah International Airport also handled

9204 flights while the number of hotel guests in the emirate reached 706320 The emirate has 31

banks and currency exchange facilities

The number of employees of federal and local government departments reached 15860 while the

number of public and private schools reached 70 with the total number of students amounting to

40700 The emirate also has eight universities and higher education colleges 244 industrial

establishments and 12320 com

Dubai Business conditions

Emirates NBD said that anecdotal evidence suggests that significant inflows of new orders led to

the rising business activity

Business conditions across Dubairsquos non-oil private sector improved in March with sharp growth

in output and new work according to Emirates NBDrsquos seasonally adjusted Dubai Economy

Tracker

According to the data non-oil private sector firms noted a sharp level of output in March albeit at

a slower rate than seen in the previous two services

Emirates NBD said that anecdotal evidence suggests that significant inflows of new orders led to

the rising business activity

9

The data showed that job shedding returned to the non-oil private sector for the first time in 13

months following unchanged employment levels in the preceding survey period The overall rate

of contraction however was found to be marginal

New work grew during March with many firms adopting successful promotional strategies

extending the current sequence of improvement to 25 months

Additionally despite falling to a seven-month low business confidence was found to have

remained strong overall with optimism underpinned by new project wins and expectations of an

upturn in economic conditions

For the first time since February 2016 average cost burdens faced by the non-oil private sector fell

with many respondents reporting price discounting at suppliers The rate of decline however was

fractional overall

Prices charged were also found to have dropped in March ending a three-month sequence of

inflation According to Emirates NBD many businesses reported that output charges have been

reduced to help stimulate client demand

ldquoWhile the Dubai Economy Tracker fell to a four-month low it remained firmly in expansionary

territory with travel and tourism the outperformerrdquo said Daniel Richards MENA economist at

Emirates NBD ldquoThat being said firms continue to make price discounts in order to bolster

demandrdquo

Richards added that squeezed margins appear to be taking their toll on employment

ldquoNevertheless we anticipate faster growth in the Dubai economy this year bolstered by ongoing

infrastructure projects and greater government spendingrdquo he added

Dubais private sector economy in March

A key gauge of Dubais non-oil private sector economy eased slightly in March to the lowest

increase in four months but it remained in growth territory as business conditions improved

But employment slipped into contraction for the first time since February 2017 as squeezed

margins took toll on jobs

10

The seasonally adjusted Emirates NBD Dubai Economy Tracker Index ndash a monthly composite

indicator designed to reflect business conditions ndash slipped to 553 down from 558 in February A

reading above 50 suggests the non-oil economy is growing while a reading below 50 suggests a

contraction

The March figure for the overall economy of the emirate indicated a marked expansion that was in

line with the historical average Growth was also recorded across all three sub-sectors monitored in

the survey led by travel and tourism which ended March at 567 followed by wholesale and retail

at 563 and construction at 532

ldquoWhile the Dubai Economy Tracker fell to a four-month low hellip it remained firmly in expansionary

territory with travel and tourism the outperformerrdquo said Daniel Richards the Middle East and

North Africa economist at Emirates NBD

ldquoWe anticipate faster growth in the Dubai economy this year bolstered by ongoing infrastructure

projects and greater government spendingrdquo

Dubai which has announced record expansionary budget this year is preparing to spend billions

of dollars to complete Expo 2020-related projects The commercial and tourism hub which is

expected to receive millions of visitors during the six-month global fair is witnessing an

improvement in business sentiment as its economy recovers after a three-year oil price slump

Non-oil private sector companies noted a sharp output growth during March but at a slower rate

than that seen in the previous two surveys According to anecdotal evidence strong inflows of new

orders were linked to rising business activity the Emirates NBD survey noted

Successful promotional strategies helped Dubai companies to continue to generate strong growth

of new work in March The rate of expansion during the latest survey was broadly in line with the

average seen over the last two years

Despite easing to a seven-month low in March business confidence towards future growth

prospects remained strongly positive overall

ldquoOptimism was underpinned by new project wins and an expected upturn in economic conditionsrdquo

the survey said

In terms of inflation average cost burdens faced by the non-oil private sector firms fell for the first

time since February 2016 The rate of decline however was fractional overall Prices charged also

dropped at a moderate pace in March ending a three-month sequence of inflation That being said

companies continue to offer price discounts in order to bolster demand

11

REAL ESTATE AND CONSTRUCTION

Dubais mid-market real estate in Q1

Despite flattening in the overall market secondary residential market transactions remained

relatively stable in the first quarter of 2018 according to new data from brokerage firm Luxhabitat

According to the data 622 villas and 7050 apartments were transacted within the first quarter of

the year in both the secondary residential and off-plan market In the secondary market the total

volume of transactions amounted to AED 86 billion ($234 billion) compared to AED 101 billion

($275 billion) in Q4 2017

In comparison off-plan transaction volumes and the number of transactions fell almost 28 percent

from the previous quarter to AED 58 billion ($158 billion)

Luxhabitat noted that the drop is likely due to the announcement that Dubai developers need their

projects to reach 50 percent completion before declaring their properties for sale as well as pay off

all the costs related to land

Property Monitor statistics show 80000 units are scheduled to be completed in 2018 with 2000

units each to be delivered in Downtown Dubai Business Bay Mohammed bin Rashid City and

Jumeirah Village Circle

ldquoWersquore also seeing more extended post-handover payment plans discounts and DLD waivers

from developersrdquo saidLuxhabitat associate director Brigitte Tenbergen

ldquoWhat I perceive as general sentiment is that buyers are overwhelmed with the amount of projects

and in no rush ndash they take their sweet time and are demanding discounts and waivers as they are

well aware that there is an oversupply of properties in the marketrdquo

Sally Ann Ghai another Luxhabitat associate director said that ldquowhile it is true that the attraction

of extended developer payment plans hook those buyers short of a 35 percent deposit for a AED 5

million plus home purchase only a review by the Central Bank on borrowing rules will truly support

a revival in the secondary marketrdquo

Additionally the Luxhabitat analysis found that the prime residential market in Q1 2018 totalled

AED 53 billion ($144 billion) with secondary villa sale volumes far exceeding off-plan sales

ldquoFor clients looking at a longer term investment they may realise more value from a cooled and

increasingly rational secondary market with sellers now reality checked in their asking prices

compared to developers who are front loading pricing in most prime off-plan developmentsrdquo

Ghai said

12

ldquoThe question is whether off-plan can hold these values on delivery under weight of supplyrdquo

Construction activity

Construction activity in Dubai will remain robust in the next two-and-a-half years with

developments related to Expo 2020 being one of the main driving force behind the sectors growth

According to latest data issued by BNC Network the total value of major Expo-related construction

projects reached Dh156 billion ($425 billion) by the end of March 31 2018 driven by both public

and private sectors The majority of these projects are poised to complete before Expo begins in

October 2020 resulting in massive job creation as well The development of Expo 2020 projects will

create a low-level skyline as compared to skyscrapers dominating Northern Dubai

In 2017 Dh11 billion worth of contracts were awarded by Expo 2020 The BNC Network data

showed that the total value of the top 10 active projects linked to Expo 2020 exceeded Dh120

billion ($327 billion) as of March 31 2018

A breakdown provided by BNC Network showed that Dh638 billion are spent on infrastructure and

transports Dh484 billion on commercial and residential housing projects and Dh4037 billion on

hospitality and theme parks

According to BNC Network expansion of Al Maktoum International Airport Phase 1 tops Dh2936

billion followed by Dh25 billion The Villages development at Dubai South Dh242 billion Dubai

Exhibition City and Dh106 billion Dubai Metro Red Line extension

Imran Farooq CEO Samana Developers said Expo 2020 is a game-changer for UAEs construction

and is an international trade platform not only for the construction sector but almost every industry

- be it real estate hospitality tourism airline and related industries

The rising pressure from developers and their competitors has increased the speed of

construction Developers are in a hurry to complete and deliver the projects before 2020 lest the

market loses its steam UAE construction outlook is brighter with Expo as JLLs 2018 report said

approximately 575000 new real estate units could enter the market until 2020 Farooq added

Overall the combined value of 11755 construction projects in the UAE crossed Dh3 trillion in

November 2017 BNC reported last year

Gidwani of BNC Network said Private sector contracts or developments will continue as the

companies own plans regardless of Expo 2020 For example major property developers Nakheel

Emaar Dubai Properties Deyaar Damac Azizi and Danube Properties will continue to invest in the

local economy - that wont be directly linked to Expo 2020

6

I OIL SECTOR

New law regulating the petroleum sector in Ras al-Khaimah

HH Sheikh Saud bin Saqr Al Qasimi Supreme Council Member and Ruler of Ras al-Khaimah has

issued a law regulating the petroleum sector in the emirate of Ras al-Khaimah

The law aims at regulating the exploration and commercial use of the petroleum resources within

the territories of Ras al-Khaimah in a way that will benefit the national economy and provide a

conducive environment to attract investments in the sector

It also provides a regulatory framework for the exploration development and commercial

operations of petroleum resources in Ras al-Khaimah

Fujairah oil stocks

Total oil product stocks in Fujairah were 18620 million barrels as of Monday up 122 percent from

a week earlier after a sharp rise in middle distillate numbers according to latest data from the

Fujairah Energy Data Committee or FEDCom

Stocks of middle distillates surged 642 percent on the week to 2855 million barrels Bullish

sentiment in the Asian jet fuel market intensified supported by supply tightness for prompt barrels

as a result of ongoing refinery turnarounds in Asia and the Middle East SampP Global Platts Analytics

said in a report

In addition still-workable arbitrage economics coupled with declining voyage rates pushed jet fuel

barrels from the Gulf and India to Europe as well as from South Korea to the US west coast This

further exacerbated the tight supply the report said

Demand for jet barrels in the Arab Gulf was seen as strong Fundamentals in the Asian gasoil

market were stable and unchanged with softer demand for ULSD and higher freight rates making

it uneconomic to ship cargoes to the west of Suez despite heightened post-winter demand in

Europe

Stocks of heavy distillates and residues also rebounded by 20 percent to 8456 million barrels

Buying sentiment in the Fujairah bunker fuel markets was strong at the start of the week but

retreated on a rise in outright prices Some sellers reported steady levels of inquiries but said bids

were relatively unattractive for deals Fujairah-delivered 380 CST bunker fuel was assessed at

US$39325mt on Tuesday up by US$625mt from Monday

7

Stocks of light distillates fell by 64 percent week-on-week to 7309 million barrels Fundamentals in

the Asian gasoline market seemed to be weakening on excess supplies and tepid demand within

the region with no increase in spot demand seen lately Platts Analytics said

In a potential blow to refiners in India and East Asia Irans oil minister Bijan Zanganeh announced

this week that his country will cease imports of gasoline by the fourth quarter of the year given the

near-completion of Phase II of the Gulf Star refinery

8

II NON OIL SECTOR

Fujairah GDP in 2017

The Annual Statistical Book 2017 of Fujairah showed that the emiratersquos GDP reached AED154

billion in 2017

The value of direct foreign trade amounted to AED64 billion and trade via its free zone amounted

to AED8 billion totalling AED144 billion

The 21st edition of the book issued by the Fujairah Statistics Centre yesterday highlighted the

various developments taking place in the emirate in light of the directives of HH Sheikh Hamad

bin Mohammed Al Sharqi Supreme Council Member and Ruler of Fujairah and the close

monitoring of HH Sheikh Mohammed bin Hamad bin Mohammed Al Sharqi Crown Prince of

Fujairah

The book also said that the emiratersquos population at the end of 2017 reached 236810 while the

previous year witnessed 3924 births and 260 deaths Fujairah International Airport also handled

9204 flights while the number of hotel guests in the emirate reached 706320 The emirate has 31

banks and currency exchange facilities

The number of employees of federal and local government departments reached 15860 while the

number of public and private schools reached 70 with the total number of students amounting to

40700 The emirate also has eight universities and higher education colleges 244 industrial

establishments and 12320 com

Dubai Business conditions

Emirates NBD said that anecdotal evidence suggests that significant inflows of new orders led to

the rising business activity

Business conditions across Dubairsquos non-oil private sector improved in March with sharp growth

in output and new work according to Emirates NBDrsquos seasonally adjusted Dubai Economy

Tracker

According to the data non-oil private sector firms noted a sharp level of output in March albeit at

a slower rate than seen in the previous two services

Emirates NBD said that anecdotal evidence suggests that significant inflows of new orders led to

the rising business activity

9

The data showed that job shedding returned to the non-oil private sector for the first time in 13

months following unchanged employment levels in the preceding survey period The overall rate

of contraction however was found to be marginal

New work grew during March with many firms adopting successful promotional strategies

extending the current sequence of improvement to 25 months

Additionally despite falling to a seven-month low business confidence was found to have

remained strong overall with optimism underpinned by new project wins and expectations of an

upturn in economic conditions

For the first time since February 2016 average cost burdens faced by the non-oil private sector fell

with many respondents reporting price discounting at suppliers The rate of decline however was

fractional overall

Prices charged were also found to have dropped in March ending a three-month sequence of

inflation According to Emirates NBD many businesses reported that output charges have been

reduced to help stimulate client demand

ldquoWhile the Dubai Economy Tracker fell to a four-month low it remained firmly in expansionary

territory with travel and tourism the outperformerrdquo said Daniel Richards MENA economist at

Emirates NBD ldquoThat being said firms continue to make price discounts in order to bolster

demandrdquo

Richards added that squeezed margins appear to be taking their toll on employment

ldquoNevertheless we anticipate faster growth in the Dubai economy this year bolstered by ongoing

infrastructure projects and greater government spendingrdquo he added

Dubais private sector economy in March

A key gauge of Dubais non-oil private sector economy eased slightly in March to the lowest

increase in four months but it remained in growth territory as business conditions improved

But employment slipped into contraction for the first time since February 2017 as squeezed

margins took toll on jobs

10

The seasonally adjusted Emirates NBD Dubai Economy Tracker Index ndash a monthly composite

indicator designed to reflect business conditions ndash slipped to 553 down from 558 in February A

reading above 50 suggests the non-oil economy is growing while a reading below 50 suggests a

contraction

The March figure for the overall economy of the emirate indicated a marked expansion that was in

line with the historical average Growth was also recorded across all three sub-sectors monitored in

the survey led by travel and tourism which ended March at 567 followed by wholesale and retail

at 563 and construction at 532

ldquoWhile the Dubai Economy Tracker fell to a four-month low hellip it remained firmly in expansionary

territory with travel and tourism the outperformerrdquo said Daniel Richards the Middle East and

North Africa economist at Emirates NBD

ldquoWe anticipate faster growth in the Dubai economy this year bolstered by ongoing infrastructure

projects and greater government spendingrdquo

Dubai which has announced record expansionary budget this year is preparing to spend billions

of dollars to complete Expo 2020-related projects The commercial and tourism hub which is

expected to receive millions of visitors during the six-month global fair is witnessing an

improvement in business sentiment as its economy recovers after a three-year oil price slump

Non-oil private sector companies noted a sharp output growth during March but at a slower rate

than that seen in the previous two surveys According to anecdotal evidence strong inflows of new

orders were linked to rising business activity the Emirates NBD survey noted

Successful promotional strategies helped Dubai companies to continue to generate strong growth

of new work in March The rate of expansion during the latest survey was broadly in line with the

average seen over the last two years

Despite easing to a seven-month low in March business confidence towards future growth

prospects remained strongly positive overall

ldquoOptimism was underpinned by new project wins and an expected upturn in economic conditionsrdquo

the survey said

In terms of inflation average cost burdens faced by the non-oil private sector firms fell for the first

time since February 2016 The rate of decline however was fractional overall Prices charged also

dropped at a moderate pace in March ending a three-month sequence of inflation That being said

companies continue to offer price discounts in order to bolster demand

11

REAL ESTATE AND CONSTRUCTION

Dubais mid-market real estate in Q1

Despite flattening in the overall market secondary residential market transactions remained

relatively stable in the first quarter of 2018 according to new data from brokerage firm Luxhabitat

According to the data 622 villas and 7050 apartments were transacted within the first quarter of

the year in both the secondary residential and off-plan market In the secondary market the total

volume of transactions amounted to AED 86 billion ($234 billion) compared to AED 101 billion

($275 billion) in Q4 2017

In comparison off-plan transaction volumes and the number of transactions fell almost 28 percent

from the previous quarter to AED 58 billion ($158 billion)

Luxhabitat noted that the drop is likely due to the announcement that Dubai developers need their

projects to reach 50 percent completion before declaring their properties for sale as well as pay off

all the costs related to land

Property Monitor statistics show 80000 units are scheduled to be completed in 2018 with 2000

units each to be delivered in Downtown Dubai Business Bay Mohammed bin Rashid City and

Jumeirah Village Circle

ldquoWersquore also seeing more extended post-handover payment plans discounts and DLD waivers

from developersrdquo saidLuxhabitat associate director Brigitte Tenbergen

ldquoWhat I perceive as general sentiment is that buyers are overwhelmed with the amount of projects

and in no rush ndash they take their sweet time and are demanding discounts and waivers as they are

well aware that there is an oversupply of properties in the marketrdquo

Sally Ann Ghai another Luxhabitat associate director said that ldquowhile it is true that the attraction

of extended developer payment plans hook those buyers short of a 35 percent deposit for a AED 5

million plus home purchase only a review by the Central Bank on borrowing rules will truly support

a revival in the secondary marketrdquo

Additionally the Luxhabitat analysis found that the prime residential market in Q1 2018 totalled

AED 53 billion ($144 billion) with secondary villa sale volumes far exceeding off-plan sales

ldquoFor clients looking at a longer term investment they may realise more value from a cooled and

increasingly rational secondary market with sellers now reality checked in their asking prices

compared to developers who are front loading pricing in most prime off-plan developmentsrdquo

Ghai said

12

ldquoThe question is whether off-plan can hold these values on delivery under weight of supplyrdquo

Construction activity

Construction activity in Dubai will remain robust in the next two-and-a-half years with

developments related to Expo 2020 being one of the main driving force behind the sectors growth

According to latest data issued by BNC Network the total value of major Expo-related construction

projects reached Dh156 billion ($425 billion) by the end of March 31 2018 driven by both public

and private sectors The majority of these projects are poised to complete before Expo begins in

October 2020 resulting in massive job creation as well The development of Expo 2020 projects will

create a low-level skyline as compared to skyscrapers dominating Northern Dubai

In 2017 Dh11 billion worth of contracts were awarded by Expo 2020 The BNC Network data

showed that the total value of the top 10 active projects linked to Expo 2020 exceeded Dh120

billion ($327 billion) as of March 31 2018

A breakdown provided by BNC Network showed that Dh638 billion are spent on infrastructure and

transports Dh484 billion on commercial and residential housing projects and Dh4037 billion on

hospitality and theme parks

According to BNC Network expansion of Al Maktoum International Airport Phase 1 tops Dh2936

billion followed by Dh25 billion The Villages development at Dubai South Dh242 billion Dubai

Exhibition City and Dh106 billion Dubai Metro Red Line extension

Imran Farooq CEO Samana Developers said Expo 2020 is a game-changer for UAEs construction

and is an international trade platform not only for the construction sector but almost every industry

- be it real estate hospitality tourism airline and related industries

The rising pressure from developers and their competitors has increased the speed of

construction Developers are in a hurry to complete and deliver the projects before 2020 lest the

market loses its steam UAE construction outlook is brighter with Expo as JLLs 2018 report said

approximately 575000 new real estate units could enter the market until 2020 Farooq added

Overall the combined value of 11755 construction projects in the UAE crossed Dh3 trillion in

November 2017 BNC reported last year

Gidwani of BNC Network said Private sector contracts or developments will continue as the

companies own plans regardless of Expo 2020 For example major property developers Nakheel

Emaar Dubai Properties Deyaar Damac Azizi and Danube Properties will continue to invest in the

local economy - that wont be directly linked to Expo 2020

7

Stocks of light distillates fell by 64 percent week-on-week to 7309 million barrels Fundamentals in

the Asian gasoline market seemed to be weakening on excess supplies and tepid demand within

the region with no increase in spot demand seen lately Platts Analytics said

In a potential blow to refiners in India and East Asia Irans oil minister Bijan Zanganeh announced

this week that his country will cease imports of gasoline by the fourth quarter of the year given the

near-completion of Phase II of the Gulf Star refinery

8

II NON OIL SECTOR

Fujairah GDP in 2017

The Annual Statistical Book 2017 of Fujairah showed that the emiratersquos GDP reached AED154

billion in 2017

The value of direct foreign trade amounted to AED64 billion and trade via its free zone amounted

to AED8 billion totalling AED144 billion

The 21st edition of the book issued by the Fujairah Statistics Centre yesterday highlighted the

various developments taking place in the emirate in light of the directives of HH Sheikh Hamad

bin Mohammed Al Sharqi Supreme Council Member and Ruler of Fujairah and the close

monitoring of HH Sheikh Mohammed bin Hamad bin Mohammed Al Sharqi Crown Prince of

Fujairah

The book also said that the emiratersquos population at the end of 2017 reached 236810 while the

previous year witnessed 3924 births and 260 deaths Fujairah International Airport also handled

9204 flights while the number of hotel guests in the emirate reached 706320 The emirate has 31

banks and currency exchange facilities

The number of employees of federal and local government departments reached 15860 while the

number of public and private schools reached 70 with the total number of students amounting to

40700 The emirate also has eight universities and higher education colleges 244 industrial

establishments and 12320 com

Dubai Business conditions

Emirates NBD said that anecdotal evidence suggests that significant inflows of new orders led to

the rising business activity

Business conditions across Dubairsquos non-oil private sector improved in March with sharp growth

in output and new work according to Emirates NBDrsquos seasonally adjusted Dubai Economy

Tracker

According to the data non-oil private sector firms noted a sharp level of output in March albeit at

a slower rate than seen in the previous two services

Emirates NBD said that anecdotal evidence suggests that significant inflows of new orders led to

the rising business activity

9

The data showed that job shedding returned to the non-oil private sector for the first time in 13

months following unchanged employment levels in the preceding survey period The overall rate

of contraction however was found to be marginal

New work grew during March with many firms adopting successful promotional strategies

extending the current sequence of improvement to 25 months

Additionally despite falling to a seven-month low business confidence was found to have

remained strong overall with optimism underpinned by new project wins and expectations of an

upturn in economic conditions

For the first time since February 2016 average cost burdens faced by the non-oil private sector fell

with many respondents reporting price discounting at suppliers The rate of decline however was

fractional overall

Prices charged were also found to have dropped in March ending a three-month sequence of

inflation According to Emirates NBD many businesses reported that output charges have been

reduced to help stimulate client demand

ldquoWhile the Dubai Economy Tracker fell to a four-month low it remained firmly in expansionary

territory with travel and tourism the outperformerrdquo said Daniel Richards MENA economist at

Emirates NBD ldquoThat being said firms continue to make price discounts in order to bolster

demandrdquo

Richards added that squeezed margins appear to be taking their toll on employment

ldquoNevertheless we anticipate faster growth in the Dubai economy this year bolstered by ongoing

infrastructure projects and greater government spendingrdquo he added

Dubais private sector economy in March

A key gauge of Dubais non-oil private sector economy eased slightly in March to the lowest

increase in four months but it remained in growth territory as business conditions improved

But employment slipped into contraction for the first time since February 2017 as squeezed

margins took toll on jobs

10

The seasonally adjusted Emirates NBD Dubai Economy Tracker Index ndash a monthly composite

indicator designed to reflect business conditions ndash slipped to 553 down from 558 in February A

reading above 50 suggests the non-oil economy is growing while a reading below 50 suggests a

contraction

The March figure for the overall economy of the emirate indicated a marked expansion that was in

line with the historical average Growth was also recorded across all three sub-sectors monitored in

the survey led by travel and tourism which ended March at 567 followed by wholesale and retail

at 563 and construction at 532

ldquoWhile the Dubai Economy Tracker fell to a four-month low hellip it remained firmly in expansionary

territory with travel and tourism the outperformerrdquo said Daniel Richards the Middle East and

North Africa economist at Emirates NBD

ldquoWe anticipate faster growth in the Dubai economy this year bolstered by ongoing infrastructure

projects and greater government spendingrdquo

Dubai which has announced record expansionary budget this year is preparing to spend billions

of dollars to complete Expo 2020-related projects The commercial and tourism hub which is

expected to receive millions of visitors during the six-month global fair is witnessing an

improvement in business sentiment as its economy recovers after a three-year oil price slump

Non-oil private sector companies noted a sharp output growth during March but at a slower rate

than that seen in the previous two surveys According to anecdotal evidence strong inflows of new

orders were linked to rising business activity the Emirates NBD survey noted

Successful promotional strategies helped Dubai companies to continue to generate strong growth

of new work in March The rate of expansion during the latest survey was broadly in line with the

average seen over the last two years

Despite easing to a seven-month low in March business confidence towards future growth

prospects remained strongly positive overall

ldquoOptimism was underpinned by new project wins and an expected upturn in economic conditionsrdquo

the survey said

In terms of inflation average cost burdens faced by the non-oil private sector firms fell for the first

time since February 2016 The rate of decline however was fractional overall Prices charged also

dropped at a moderate pace in March ending a three-month sequence of inflation That being said

companies continue to offer price discounts in order to bolster demand

11

REAL ESTATE AND CONSTRUCTION

Dubais mid-market real estate in Q1

Despite flattening in the overall market secondary residential market transactions remained

relatively stable in the first quarter of 2018 according to new data from brokerage firm Luxhabitat

According to the data 622 villas and 7050 apartments were transacted within the first quarter of

the year in both the secondary residential and off-plan market In the secondary market the total

volume of transactions amounted to AED 86 billion ($234 billion) compared to AED 101 billion

($275 billion) in Q4 2017

In comparison off-plan transaction volumes and the number of transactions fell almost 28 percent

from the previous quarter to AED 58 billion ($158 billion)

Luxhabitat noted that the drop is likely due to the announcement that Dubai developers need their

projects to reach 50 percent completion before declaring their properties for sale as well as pay off

all the costs related to land

Property Monitor statistics show 80000 units are scheduled to be completed in 2018 with 2000

units each to be delivered in Downtown Dubai Business Bay Mohammed bin Rashid City and

Jumeirah Village Circle

ldquoWersquore also seeing more extended post-handover payment plans discounts and DLD waivers

from developersrdquo saidLuxhabitat associate director Brigitte Tenbergen

ldquoWhat I perceive as general sentiment is that buyers are overwhelmed with the amount of projects

and in no rush ndash they take their sweet time and are demanding discounts and waivers as they are

well aware that there is an oversupply of properties in the marketrdquo

Sally Ann Ghai another Luxhabitat associate director said that ldquowhile it is true that the attraction

of extended developer payment plans hook those buyers short of a 35 percent deposit for a AED 5

million plus home purchase only a review by the Central Bank on borrowing rules will truly support

a revival in the secondary marketrdquo

Additionally the Luxhabitat analysis found that the prime residential market in Q1 2018 totalled

AED 53 billion ($144 billion) with secondary villa sale volumes far exceeding off-plan sales

ldquoFor clients looking at a longer term investment they may realise more value from a cooled and

increasingly rational secondary market with sellers now reality checked in their asking prices

compared to developers who are front loading pricing in most prime off-plan developmentsrdquo

Ghai said

12

ldquoThe question is whether off-plan can hold these values on delivery under weight of supplyrdquo

Construction activity

Construction activity in Dubai will remain robust in the next two-and-a-half years with

developments related to Expo 2020 being one of the main driving force behind the sectors growth

According to latest data issued by BNC Network the total value of major Expo-related construction

projects reached Dh156 billion ($425 billion) by the end of March 31 2018 driven by both public

and private sectors The majority of these projects are poised to complete before Expo begins in

October 2020 resulting in massive job creation as well The development of Expo 2020 projects will

create a low-level skyline as compared to skyscrapers dominating Northern Dubai

In 2017 Dh11 billion worth of contracts were awarded by Expo 2020 The BNC Network data

showed that the total value of the top 10 active projects linked to Expo 2020 exceeded Dh120

billion ($327 billion) as of March 31 2018

A breakdown provided by BNC Network showed that Dh638 billion are spent on infrastructure and

transports Dh484 billion on commercial and residential housing projects and Dh4037 billion on

hospitality and theme parks

According to BNC Network expansion of Al Maktoum International Airport Phase 1 tops Dh2936

billion followed by Dh25 billion The Villages development at Dubai South Dh242 billion Dubai

Exhibition City and Dh106 billion Dubai Metro Red Line extension

Imran Farooq CEO Samana Developers said Expo 2020 is a game-changer for UAEs construction

and is an international trade platform not only for the construction sector but almost every industry

- be it real estate hospitality tourism airline and related industries

The rising pressure from developers and their competitors has increased the speed of

construction Developers are in a hurry to complete and deliver the projects before 2020 lest the

market loses its steam UAE construction outlook is brighter with Expo as JLLs 2018 report said

approximately 575000 new real estate units could enter the market until 2020 Farooq added

Overall the combined value of 11755 construction projects in the UAE crossed Dh3 trillion in

November 2017 BNC reported last year

Gidwani of BNC Network said Private sector contracts or developments will continue as the

companies own plans regardless of Expo 2020 For example major property developers Nakheel

Emaar Dubai Properties Deyaar Damac Azizi and Danube Properties will continue to invest in the

local economy - that wont be directly linked to Expo 2020

8

II NON OIL SECTOR

Fujairah GDP in 2017

The Annual Statistical Book 2017 of Fujairah showed that the emiratersquos GDP reached AED154

billion in 2017

The value of direct foreign trade amounted to AED64 billion and trade via its free zone amounted

to AED8 billion totalling AED144 billion

The 21st edition of the book issued by the Fujairah Statistics Centre yesterday highlighted the

various developments taking place in the emirate in light of the directives of HH Sheikh Hamad

bin Mohammed Al Sharqi Supreme Council Member and Ruler of Fujairah and the close

monitoring of HH Sheikh Mohammed bin Hamad bin Mohammed Al Sharqi Crown Prince of

Fujairah

The book also said that the emiratersquos population at the end of 2017 reached 236810 while the

previous year witnessed 3924 births and 260 deaths Fujairah International Airport also handled

9204 flights while the number of hotel guests in the emirate reached 706320 The emirate has 31

banks and currency exchange facilities

The number of employees of federal and local government departments reached 15860 while the

number of public and private schools reached 70 with the total number of students amounting to

40700 The emirate also has eight universities and higher education colleges 244 industrial

establishments and 12320 com

Dubai Business conditions

Emirates NBD said that anecdotal evidence suggests that significant inflows of new orders led to

the rising business activity

Business conditions across Dubairsquos non-oil private sector improved in March with sharp growth

in output and new work according to Emirates NBDrsquos seasonally adjusted Dubai Economy

Tracker

According to the data non-oil private sector firms noted a sharp level of output in March albeit at

a slower rate than seen in the previous two services

Emirates NBD said that anecdotal evidence suggests that significant inflows of new orders led to

the rising business activity

9

The data showed that job shedding returned to the non-oil private sector for the first time in 13

months following unchanged employment levels in the preceding survey period The overall rate

of contraction however was found to be marginal

New work grew during March with many firms adopting successful promotional strategies

extending the current sequence of improvement to 25 months

Additionally despite falling to a seven-month low business confidence was found to have

remained strong overall with optimism underpinned by new project wins and expectations of an

upturn in economic conditions

For the first time since February 2016 average cost burdens faced by the non-oil private sector fell

with many respondents reporting price discounting at suppliers The rate of decline however was

fractional overall

Prices charged were also found to have dropped in March ending a three-month sequence of

inflation According to Emirates NBD many businesses reported that output charges have been

reduced to help stimulate client demand

ldquoWhile the Dubai Economy Tracker fell to a four-month low it remained firmly in expansionary

territory with travel and tourism the outperformerrdquo said Daniel Richards MENA economist at

Emirates NBD ldquoThat being said firms continue to make price discounts in order to bolster

demandrdquo

Richards added that squeezed margins appear to be taking their toll on employment

ldquoNevertheless we anticipate faster growth in the Dubai economy this year bolstered by ongoing

infrastructure projects and greater government spendingrdquo he added

Dubais private sector economy in March

A key gauge of Dubais non-oil private sector economy eased slightly in March to the lowest

increase in four months but it remained in growth territory as business conditions improved

But employment slipped into contraction for the first time since February 2017 as squeezed

margins took toll on jobs

10

The seasonally adjusted Emirates NBD Dubai Economy Tracker Index ndash a monthly composite

indicator designed to reflect business conditions ndash slipped to 553 down from 558 in February A

reading above 50 suggests the non-oil economy is growing while a reading below 50 suggests a

contraction

The March figure for the overall economy of the emirate indicated a marked expansion that was in

line with the historical average Growth was also recorded across all three sub-sectors monitored in

the survey led by travel and tourism which ended March at 567 followed by wholesale and retail

at 563 and construction at 532

ldquoWhile the Dubai Economy Tracker fell to a four-month low hellip it remained firmly in expansionary

territory with travel and tourism the outperformerrdquo said Daniel Richards the Middle East and

North Africa economist at Emirates NBD

ldquoWe anticipate faster growth in the Dubai economy this year bolstered by ongoing infrastructure

projects and greater government spendingrdquo

Dubai which has announced record expansionary budget this year is preparing to spend billions

of dollars to complete Expo 2020-related projects The commercial and tourism hub which is

expected to receive millions of visitors during the six-month global fair is witnessing an

improvement in business sentiment as its economy recovers after a three-year oil price slump

Non-oil private sector companies noted a sharp output growth during March but at a slower rate

than that seen in the previous two surveys According to anecdotal evidence strong inflows of new

orders were linked to rising business activity the Emirates NBD survey noted

Successful promotional strategies helped Dubai companies to continue to generate strong growth

of new work in March The rate of expansion during the latest survey was broadly in line with the

average seen over the last two years

Despite easing to a seven-month low in March business confidence towards future growth

prospects remained strongly positive overall

ldquoOptimism was underpinned by new project wins and an expected upturn in economic conditionsrdquo

the survey said

In terms of inflation average cost burdens faced by the non-oil private sector firms fell for the first

time since February 2016 The rate of decline however was fractional overall Prices charged also

dropped at a moderate pace in March ending a three-month sequence of inflation That being said

companies continue to offer price discounts in order to bolster demand

11

REAL ESTATE AND CONSTRUCTION

Dubais mid-market real estate in Q1

Despite flattening in the overall market secondary residential market transactions remained

relatively stable in the first quarter of 2018 according to new data from brokerage firm Luxhabitat

According to the data 622 villas and 7050 apartments were transacted within the first quarter of

the year in both the secondary residential and off-plan market In the secondary market the total

volume of transactions amounted to AED 86 billion ($234 billion) compared to AED 101 billion

($275 billion) in Q4 2017

In comparison off-plan transaction volumes and the number of transactions fell almost 28 percent

from the previous quarter to AED 58 billion ($158 billion)

Luxhabitat noted that the drop is likely due to the announcement that Dubai developers need their

projects to reach 50 percent completion before declaring their properties for sale as well as pay off

all the costs related to land

Property Monitor statistics show 80000 units are scheduled to be completed in 2018 with 2000

units each to be delivered in Downtown Dubai Business Bay Mohammed bin Rashid City and

Jumeirah Village Circle

ldquoWersquore also seeing more extended post-handover payment plans discounts and DLD waivers

from developersrdquo saidLuxhabitat associate director Brigitte Tenbergen

ldquoWhat I perceive as general sentiment is that buyers are overwhelmed with the amount of projects

and in no rush ndash they take their sweet time and are demanding discounts and waivers as they are

well aware that there is an oversupply of properties in the marketrdquo

Sally Ann Ghai another Luxhabitat associate director said that ldquowhile it is true that the attraction

of extended developer payment plans hook those buyers short of a 35 percent deposit for a AED 5

million plus home purchase only a review by the Central Bank on borrowing rules will truly support

a revival in the secondary marketrdquo

Additionally the Luxhabitat analysis found that the prime residential market in Q1 2018 totalled

AED 53 billion ($144 billion) with secondary villa sale volumes far exceeding off-plan sales

ldquoFor clients looking at a longer term investment they may realise more value from a cooled and

increasingly rational secondary market with sellers now reality checked in their asking prices

compared to developers who are front loading pricing in most prime off-plan developmentsrdquo

Ghai said

12

ldquoThe question is whether off-plan can hold these values on delivery under weight of supplyrdquo

Construction activity

Construction activity in Dubai will remain robust in the next two-and-a-half years with

developments related to Expo 2020 being one of the main driving force behind the sectors growth

According to latest data issued by BNC Network the total value of major Expo-related construction

projects reached Dh156 billion ($425 billion) by the end of March 31 2018 driven by both public

and private sectors The majority of these projects are poised to complete before Expo begins in

October 2020 resulting in massive job creation as well The development of Expo 2020 projects will

create a low-level skyline as compared to skyscrapers dominating Northern Dubai

In 2017 Dh11 billion worth of contracts were awarded by Expo 2020 The BNC Network data

showed that the total value of the top 10 active projects linked to Expo 2020 exceeded Dh120

billion ($327 billion) as of March 31 2018

A breakdown provided by BNC Network showed that Dh638 billion are spent on infrastructure and

transports Dh484 billion on commercial and residential housing projects and Dh4037 billion on

hospitality and theme parks

According to BNC Network expansion of Al Maktoum International Airport Phase 1 tops Dh2936

billion followed by Dh25 billion The Villages development at Dubai South Dh242 billion Dubai

Exhibition City and Dh106 billion Dubai Metro Red Line extension

Imran Farooq CEO Samana Developers said Expo 2020 is a game-changer for UAEs construction

and is an international trade platform not only for the construction sector but almost every industry

- be it real estate hospitality tourism airline and related industries

The rising pressure from developers and their competitors has increased the speed of

construction Developers are in a hurry to complete and deliver the projects before 2020 lest the

market loses its steam UAE construction outlook is brighter with Expo as JLLs 2018 report said

approximately 575000 new real estate units could enter the market until 2020 Farooq added

Overall the combined value of 11755 construction projects in the UAE crossed Dh3 trillion in

November 2017 BNC reported last year

Gidwani of BNC Network said Private sector contracts or developments will continue as the

companies own plans regardless of Expo 2020 For example major property developers Nakheel

Emaar Dubai Properties Deyaar Damac Azizi and Danube Properties will continue to invest in the

local economy - that wont be directly linked to Expo 2020

9

The data showed that job shedding returned to the non-oil private sector for the first time in 13

months following unchanged employment levels in the preceding survey period The overall rate

of contraction however was found to be marginal

New work grew during March with many firms adopting successful promotional strategies

extending the current sequence of improvement to 25 months

Additionally despite falling to a seven-month low business confidence was found to have

remained strong overall with optimism underpinned by new project wins and expectations of an

upturn in economic conditions

For the first time since February 2016 average cost burdens faced by the non-oil private sector fell

with many respondents reporting price discounting at suppliers The rate of decline however was

fractional overall

Prices charged were also found to have dropped in March ending a three-month sequence of

inflation According to Emirates NBD many businesses reported that output charges have been

reduced to help stimulate client demand

ldquoWhile the Dubai Economy Tracker fell to a four-month low it remained firmly in expansionary

territory with travel and tourism the outperformerrdquo said Daniel Richards MENA economist at

Emirates NBD ldquoThat being said firms continue to make price discounts in order to bolster

demandrdquo

Richards added that squeezed margins appear to be taking their toll on employment

ldquoNevertheless we anticipate faster growth in the Dubai economy this year bolstered by ongoing

infrastructure projects and greater government spendingrdquo he added

Dubais private sector economy in March

A key gauge of Dubais non-oil private sector economy eased slightly in March to the lowest

increase in four months but it remained in growth territory as business conditions improved

But employment slipped into contraction for the first time since February 2017 as squeezed

margins took toll on jobs

10

The seasonally adjusted Emirates NBD Dubai Economy Tracker Index ndash a monthly composite

indicator designed to reflect business conditions ndash slipped to 553 down from 558 in February A

reading above 50 suggests the non-oil economy is growing while a reading below 50 suggests a

contraction

The March figure for the overall economy of the emirate indicated a marked expansion that was in

line with the historical average Growth was also recorded across all three sub-sectors monitored in

the survey led by travel and tourism which ended March at 567 followed by wholesale and retail

at 563 and construction at 532

ldquoWhile the Dubai Economy Tracker fell to a four-month low hellip it remained firmly in expansionary

territory with travel and tourism the outperformerrdquo said Daniel Richards the Middle East and

North Africa economist at Emirates NBD

ldquoWe anticipate faster growth in the Dubai economy this year bolstered by ongoing infrastructure

projects and greater government spendingrdquo

Dubai which has announced record expansionary budget this year is preparing to spend billions

of dollars to complete Expo 2020-related projects The commercial and tourism hub which is

expected to receive millions of visitors during the six-month global fair is witnessing an

improvement in business sentiment as its economy recovers after a three-year oil price slump

Non-oil private sector companies noted a sharp output growth during March but at a slower rate

than that seen in the previous two surveys According to anecdotal evidence strong inflows of new

orders were linked to rising business activity the Emirates NBD survey noted

Successful promotional strategies helped Dubai companies to continue to generate strong growth

of new work in March The rate of expansion during the latest survey was broadly in line with the

average seen over the last two years

Despite easing to a seven-month low in March business confidence towards future growth

prospects remained strongly positive overall

ldquoOptimism was underpinned by new project wins and an expected upturn in economic conditionsrdquo

the survey said

In terms of inflation average cost burdens faced by the non-oil private sector firms fell for the first

time since February 2016 The rate of decline however was fractional overall Prices charged also

dropped at a moderate pace in March ending a three-month sequence of inflation That being said

companies continue to offer price discounts in order to bolster demand

11

REAL ESTATE AND CONSTRUCTION

Dubais mid-market real estate in Q1

Despite flattening in the overall market secondary residential market transactions remained

relatively stable in the first quarter of 2018 according to new data from brokerage firm Luxhabitat

According to the data 622 villas and 7050 apartments were transacted within the first quarter of

the year in both the secondary residential and off-plan market In the secondary market the total

volume of transactions amounted to AED 86 billion ($234 billion) compared to AED 101 billion

($275 billion) in Q4 2017

In comparison off-plan transaction volumes and the number of transactions fell almost 28 percent

from the previous quarter to AED 58 billion ($158 billion)

Luxhabitat noted that the drop is likely due to the announcement that Dubai developers need their

projects to reach 50 percent completion before declaring their properties for sale as well as pay off

all the costs related to land

Property Monitor statistics show 80000 units are scheduled to be completed in 2018 with 2000

units each to be delivered in Downtown Dubai Business Bay Mohammed bin Rashid City and

Jumeirah Village Circle

ldquoWersquore also seeing more extended post-handover payment plans discounts and DLD waivers

from developersrdquo saidLuxhabitat associate director Brigitte Tenbergen

ldquoWhat I perceive as general sentiment is that buyers are overwhelmed with the amount of projects

and in no rush ndash they take their sweet time and are demanding discounts and waivers as they are

well aware that there is an oversupply of properties in the marketrdquo

Sally Ann Ghai another Luxhabitat associate director said that ldquowhile it is true that the attraction

of extended developer payment plans hook those buyers short of a 35 percent deposit for a AED 5

million plus home purchase only a review by the Central Bank on borrowing rules will truly support

a revival in the secondary marketrdquo

Additionally the Luxhabitat analysis found that the prime residential market in Q1 2018 totalled

AED 53 billion ($144 billion) with secondary villa sale volumes far exceeding off-plan sales

ldquoFor clients looking at a longer term investment they may realise more value from a cooled and

increasingly rational secondary market with sellers now reality checked in their asking prices

compared to developers who are front loading pricing in most prime off-plan developmentsrdquo

Ghai said

12

ldquoThe question is whether off-plan can hold these values on delivery under weight of supplyrdquo

Construction activity

Construction activity in Dubai will remain robust in the next two-and-a-half years with

developments related to Expo 2020 being one of the main driving force behind the sectors growth

According to latest data issued by BNC Network the total value of major Expo-related construction

projects reached Dh156 billion ($425 billion) by the end of March 31 2018 driven by both public

and private sectors The majority of these projects are poised to complete before Expo begins in

October 2020 resulting in massive job creation as well The development of Expo 2020 projects will

create a low-level skyline as compared to skyscrapers dominating Northern Dubai

In 2017 Dh11 billion worth of contracts were awarded by Expo 2020 The BNC Network data

showed that the total value of the top 10 active projects linked to Expo 2020 exceeded Dh120

billion ($327 billion) as of March 31 2018

A breakdown provided by BNC Network showed that Dh638 billion are spent on infrastructure and

transports Dh484 billion on commercial and residential housing projects and Dh4037 billion on

hospitality and theme parks

According to BNC Network expansion of Al Maktoum International Airport Phase 1 tops Dh2936

billion followed by Dh25 billion The Villages development at Dubai South Dh242 billion Dubai

Exhibition City and Dh106 billion Dubai Metro Red Line extension

Imran Farooq CEO Samana Developers said Expo 2020 is a game-changer for UAEs construction

and is an international trade platform not only for the construction sector but almost every industry

- be it real estate hospitality tourism airline and related industries

The rising pressure from developers and their competitors has increased the speed of

construction Developers are in a hurry to complete and deliver the projects before 2020 lest the

market loses its steam UAE construction outlook is brighter with Expo as JLLs 2018 report said

approximately 575000 new real estate units could enter the market until 2020 Farooq added

Overall the combined value of 11755 construction projects in the UAE crossed Dh3 trillion in

November 2017 BNC reported last year

Gidwani of BNC Network said Private sector contracts or developments will continue as the

companies own plans regardless of Expo 2020 For example major property developers Nakheel

Emaar Dubai Properties Deyaar Damac Azizi and Danube Properties will continue to invest in the

local economy - that wont be directly linked to Expo 2020

10

The seasonally adjusted Emirates NBD Dubai Economy Tracker Index ndash a monthly composite

indicator designed to reflect business conditions ndash slipped to 553 down from 558 in February A

reading above 50 suggests the non-oil economy is growing while a reading below 50 suggests a

contraction

The March figure for the overall economy of the emirate indicated a marked expansion that was in

line with the historical average Growth was also recorded across all three sub-sectors monitored in

the survey led by travel and tourism which ended March at 567 followed by wholesale and retail

at 563 and construction at 532

ldquoWhile the Dubai Economy Tracker fell to a four-month low hellip it remained firmly in expansionary

territory with travel and tourism the outperformerrdquo said Daniel Richards the Middle East and

North Africa economist at Emirates NBD

ldquoWe anticipate faster growth in the Dubai economy this year bolstered by ongoing infrastructure

projects and greater government spendingrdquo

Dubai which has announced record expansionary budget this year is preparing to spend billions

of dollars to complete Expo 2020-related projects The commercial and tourism hub which is

expected to receive millions of visitors during the six-month global fair is witnessing an

improvement in business sentiment as its economy recovers after a three-year oil price slump

Non-oil private sector companies noted a sharp output growth during March but at a slower rate

than that seen in the previous two surveys According to anecdotal evidence strong inflows of new

orders were linked to rising business activity the Emirates NBD survey noted

Successful promotional strategies helped Dubai companies to continue to generate strong growth

of new work in March The rate of expansion during the latest survey was broadly in line with the

average seen over the last two years

Despite easing to a seven-month low in March business confidence towards future growth

prospects remained strongly positive overall

ldquoOptimism was underpinned by new project wins and an expected upturn in economic conditionsrdquo

the survey said

In terms of inflation average cost burdens faced by the non-oil private sector firms fell for the first

time since February 2016 The rate of decline however was fractional overall Prices charged also

dropped at a moderate pace in March ending a three-month sequence of inflation That being said

companies continue to offer price discounts in order to bolster demand

11

REAL ESTATE AND CONSTRUCTION

Dubais mid-market real estate in Q1

Despite flattening in the overall market secondary residential market transactions remained

relatively stable in the first quarter of 2018 according to new data from brokerage firm Luxhabitat

According to the data 622 villas and 7050 apartments were transacted within the first quarter of

the year in both the secondary residential and off-plan market In the secondary market the total

volume of transactions amounted to AED 86 billion ($234 billion) compared to AED 101 billion

($275 billion) in Q4 2017

In comparison off-plan transaction volumes and the number of transactions fell almost 28 percent

from the previous quarter to AED 58 billion ($158 billion)

Luxhabitat noted that the drop is likely due to the announcement that Dubai developers need their

projects to reach 50 percent completion before declaring their properties for sale as well as pay off

all the costs related to land

Property Monitor statistics show 80000 units are scheduled to be completed in 2018 with 2000

units each to be delivered in Downtown Dubai Business Bay Mohammed bin Rashid City and

Jumeirah Village Circle

ldquoWersquore also seeing more extended post-handover payment plans discounts and DLD waivers

from developersrdquo saidLuxhabitat associate director Brigitte Tenbergen

ldquoWhat I perceive as general sentiment is that buyers are overwhelmed with the amount of projects

and in no rush ndash they take their sweet time and are demanding discounts and waivers as they are

well aware that there is an oversupply of properties in the marketrdquo

Sally Ann Ghai another Luxhabitat associate director said that ldquowhile it is true that the attraction

of extended developer payment plans hook those buyers short of a 35 percent deposit for a AED 5

million plus home purchase only a review by the Central Bank on borrowing rules will truly support

a revival in the secondary marketrdquo

Additionally the Luxhabitat analysis found that the prime residential market in Q1 2018 totalled

AED 53 billion ($144 billion) with secondary villa sale volumes far exceeding off-plan sales

ldquoFor clients looking at a longer term investment they may realise more value from a cooled and

increasingly rational secondary market with sellers now reality checked in their asking prices

compared to developers who are front loading pricing in most prime off-plan developmentsrdquo

Ghai said

12

ldquoThe question is whether off-plan can hold these values on delivery under weight of supplyrdquo

Construction activity

Construction activity in Dubai will remain robust in the next two-and-a-half years with

developments related to Expo 2020 being one of the main driving force behind the sectors growth

According to latest data issued by BNC Network the total value of major Expo-related construction

projects reached Dh156 billion ($425 billion) by the end of March 31 2018 driven by both public

and private sectors The majority of these projects are poised to complete before Expo begins in

October 2020 resulting in massive job creation as well The development of Expo 2020 projects will

create a low-level skyline as compared to skyscrapers dominating Northern Dubai

In 2017 Dh11 billion worth of contracts were awarded by Expo 2020 The BNC Network data

showed that the total value of the top 10 active projects linked to Expo 2020 exceeded Dh120

billion ($327 billion) as of March 31 2018

A breakdown provided by BNC Network showed that Dh638 billion are spent on infrastructure and

transports Dh484 billion on commercial and residential housing projects and Dh4037 billion on

hospitality and theme parks

According to BNC Network expansion of Al Maktoum International Airport Phase 1 tops Dh2936

billion followed by Dh25 billion The Villages development at Dubai South Dh242 billion Dubai

Exhibition City and Dh106 billion Dubai Metro Red Line extension

Imran Farooq CEO Samana Developers said Expo 2020 is a game-changer for UAEs construction

and is an international trade platform not only for the construction sector but almost every industry

- be it real estate hospitality tourism airline and related industries

The rising pressure from developers and their competitors has increased the speed of

construction Developers are in a hurry to complete and deliver the projects before 2020 lest the

market loses its steam UAE construction outlook is brighter with Expo as JLLs 2018 report said

approximately 575000 new real estate units could enter the market until 2020 Farooq added

Overall the combined value of 11755 construction projects in the UAE crossed Dh3 trillion in

November 2017 BNC reported last year

Gidwani of BNC Network said Private sector contracts or developments will continue as the

companies own plans regardless of Expo 2020 For example major property developers Nakheel

Emaar Dubai Properties Deyaar Damac Azizi and Danube Properties will continue to invest in the

local economy - that wont be directly linked to Expo 2020

11

REAL ESTATE AND CONSTRUCTION

Dubais mid-market real estate in Q1

Despite flattening in the overall market secondary residential market transactions remained

relatively stable in the first quarter of 2018 according to new data from brokerage firm Luxhabitat

According to the data 622 villas and 7050 apartments were transacted within the first quarter of

the year in both the secondary residential and off-plan market In the secondary market the total

volume of transactions amounted to AED 86 billion ($234 billion) compared to AED 101 billion

($275 billion) in Q4 2017

In comparison off-plan transaction volumes and the number of transactions fell almost 28 percent

from the previous quarter to AED 58 billion ($158 billion)

Luxhabitat noted that the drop is likely due to the announcement that Dubai developers need their

projects to reach 50 percent completion before declaring their properties for sale as well as pay off

all the costs related to land

Property Monitor statistics show 80000 units are scheduled to be completed in 2018 with 2000

units each to be delivered in Downtown Dubai Business Bay Mohammed bin Rashid City and

Jumeirah Village Circle

ldquoWersquore also seeing more extended post-handover payment plans discounts and DLD waivers

from developersrdquo saidLuxhabitat associate director Brigitte Tenbergen

ldquoWhat I perceive as general sentiment is that buyers are overwhelmed with the amount of projects

and in no rush ndash they take their sweet time and are demanding discounts and waivers as they are

well aware that there is an oversupply of properties in the marketrdquo

Sally Ann Ghai another Luxhabitat associate director said that ldquowhile it is true that the attraction

of extended developer payment plans hook those buyers short of a 35 percent deposit for a AED 5

million plus home purchase only a review by the Central Bank on borrowing rules will truly support

a revival in the secondary marketrdquo

Additionally the Luxhabitat analysis found that the prime residential market in Q1 2018 totalled

AED 53 billion ($144 billion) with secondary villa sale volumes far exceeding off-plan sales

ldquoFor clients looking at a longer term investment they may realise more value from a cooled and

increasingly rational secondary market with sellers now reality checked in their asking prices

compared to developers who are front loading pricing in most prime off-plan developmentsrdquo

Ghai said

12

ldquoThe question is whether off-plan can hold these values on delivery under weight of supplyrdquo

Construction activity

Construction activity in Dubai will remain robust in the next two-and-a-half years with

developments related to Expo 2020 being one of the main driving force behind the sectors growth

According to latest data issued by BNC Network the total value of major Expo-related construction

projects reached Dh156 billion ($425 billion) by the end of March 31 2018 driven by both public

and private sectors The majority of these projects are poised to complete before Expo begins in

October 2020 resulting in massive job creation as well The development of Expo 2020 projects will

create a low-level skyline as compared to skyscrapers dominating Northern Dubai

In 2017 Dh11 billion worth of contracts were awarded by Expo 2020 The BNC Network data

showed that the total value of the top 10 active projects linked to Expo 2020 exceeded Dh120

billion ($327 billion) as of March 31 2018

A breakdown provided by BNC Network showed that Dh638 billion are spent on infrastructure and

transports Dh484 billion on commercial and residential housing projects and Dh4037 billion on

hospitality and theme parks

According to BNC Network expansion of Al Maktoum International Airport Phase 1 tops Dh2936

billion followed by Dh25 billion The Villages development at Dubai South Dh242 billion Dubai

Exhibition City and Dh106 billion Dubai Metro Red Line extension

Imran Farooq CEO Samana Developers said Expo 2020 is a game-changer for UAEs construction

and is an international trade platform not only for the construction sector but almost every industry

- be it real estate hospitality tourism airline and related industries

The rising pressure from developers and their competitors has increased the speed of

construction Developers are in a hurry to complete and deliver the projects before 2020 lest the

market loses its steam UAE construction outlook is brighter with Expo as JLLs 2018 report said

approximately 575000 new real estate units could enter the market until 2020 Farooq added

Overall the combined value of 11755 construction projects in the UAE crossed Dh3 trillion in

November 2017 BNC reported last year

Gidwani of BNC Network said Private sector contracts or developments will continue as the

companies own plans regardless of Expo 2020 For example major property developers Nakheel

Emaar Dubai Properties Deyaar Damac Azizi and Danube Properties will continue to invest in the

local economy - that wont be directly linked to Expo 2020

12

ldquoThe question is whether off-plan can hold these values on delivery under weight of supplyrdquo

Construction activity

Construction activity in Dubai will remain robust in the next two-and-a-half years with

developments related to Expo 2020 being one of the main driving force behind the sectors growth

According to latest data issued by BNC Network the total value of major Expo-related construction

projects reached Dh156 billion ($425 billion) by the end of March 31 2018 driven by both public

and private sectors The majority of these projects are poised to complete before Expo begins in

October 2020 resulting in massive job creation as well The development of Expo 2020 projects will

create a low-level skyline as compared to skyscrapers dominating Northern Dubai

In 2017 Dh11 billion worth of contracts were awarded by Expo 2020 The BNC Network data

showed that the total value of the top 10 active projects linked to Expo 2020 exceeded Dh120

billion ($327 billion) as of March 31 2018

A breakdown provided by BNC Network showed that Dh638 billion are spent on infrastructure and

transports Dh484 billion on commercial and residential housing projects and Dh4037 billion on

hospitality and theme parks

According to BNC Network expansion of Al Maktoum International Airport Phase 1 tops Dh2936

billion followed by Dh25 billion The Villages development at Dubai South Dh242 billion Dubai

Exhibition City and Dh106 billion Dubai Metro Red Line extension

Imran Farooq CEO Samana Developers said Expo 2020 is a game-changer for UAEs construction

and is an international trade platform not only for the construction sector but almost every industry

- be it real estate hospitality tourism airline and related industries

The rising pressure from developers and their competitors has increased the speed of

construction Developers are in a hurry to complete and deliver the projects before 2020 lest the

market loses its steam UAE construction outlook is brighter with Expo as JLLs 2018 report said

approximately 575000 new real estate units could enter the market until 2020 Farooq added

Overall the combined value of 11755 construction projects in the UAE crossed Dh3 trillion in

November 2017 BNC reported last year

Gidwani of BNC Network said Private sector contracts or developments will continue as the

companies own plans regardless of Expo 2020 For example major property developers Nakheel

Emaar Dubai Properties Deyaar Damac Azizi and Danube Properties will continue to invest in the

local economy - that wont be directly linked to Expo 2020

13

FINANCES

Sharjah FDIs in 2017

The Sharjah FDI Office Invest in Sharjah the investment promotion arm of the Sharjah government

has unveiled that the emiratersquos performance in attracting foreign direct investment FDI in

various economic sectors which has seen a sharp increase of 102 percent between 2016 and 2017

with FDI inflows worth AED597 billion (US$1622 billion) last year as compared to AED920 million

(US$808 million) in 2016

One of the key benefits of the process of these enlarged foreign investments has been felt by the

job market in Sharjah which has reported a 174 percent growth in 2017 with the creation of 2815

new jobs as compared to 1025 in 2016 More than 5000 jobs were created in 2017 from all

investments that came into Sharjah including local regional and international businesses

These announcements were made by the Invest in Sharjah CEO Mohammed Jumarsquoa Al

Musharrkh at a press conference as part of the entityrsquos participation at the Annual Investment

Meeting AIM 2018

Al Musharrkh revealed that the 2017 capital investments were made by 18 new projects that were

set up in diverse sectors with the top three being architectural metal manufacturing investing

approximately AED27 billion (US$725 million) agricultural construction and mining machinery

with approximately AED13 billion (US$356 million) and real estate FDI standing at approx

AED126 billion (US$344 million)

He noted Sharjah has witnessed a qualitative growth in FDI inflows in the past year with 18 new

businesses bringing in more than double the capital that was invested by 20 projects in 2016

These figures testify that Sharjahrsquos commitment to reinforcing positive perceptions of the

emiratersquos competitiveness as one of the top investment locations in the UAE and the larger Arab

region by continually enhancing its infrastructure services and regulations increase ease of doing

business are headed in the right direction and reaping fantastic results for us as well as our

investors

He added Sharjahrsquos trade practices and FDI policies have had a positive effect on productivity

growth and job creation Of the total FDI inflows into Sharjah between 2016 and mid-2017 which

was valued at US$803 million US$553 million was attracted within the first six months of 2017 ndash

reflecting a 543 percent or 55 times increase in foreign investments in the emirate as compared to

US$250 million that was invested in various businesses throughout 2016

14

Invest in Sharjah identified top international investors in the emirate in 2017 as India UK USA

China and Saudi Arabia and reported that a total of approximately AED39 billion (US$105 billion)

was invested in different businesses last year in a total of 35 new ventures characterised by

domestic projects from the other emirates in the UAE and FDIs

The UAE Federal Competitiveness Authority has revealed that as of December 2016 the total FDI

stocks in Sharjah stood at AED 30 billion High-level projects which are undergoing sales

opportunities include the Azure Beach Resort project in Maryam Island developed by Eagle Hills

Sharjah Development Al Jada by Arada Al Mamsha by Alef Group Tilal City by Tilal Properties and

the Sharjah Waterfront City by the Sharjah Oasis Real Estate Development company

Mariam Nasser Al Suwaidi Deputy Director of the Department of Industrial Affairs highlighted

during the conference that in 2017 Sharjah underwent a five percent increase in its GDP with key

manufacturing industries such as construction wholesale and retail restaurants and hotels real

estate and business services ranging between six percent and nine percent in net growth

Al Suwaidi continued by unveiling that a total of 73000 trade licenses were issued in Sharjah

during 2017 with an average growth of two percent in comparison to that volume in 2016 as well

as a growth of 27 percent in total number of industrial licenses issued

Abdullah Sultan Al Owais Chairman of the Sharjah Chamber of Commerce and Industry SCCI said

Trade has been a key driver in Sharjahrsquos FDI growth where we issued a total of 105061

certificate of origin across all our four branches boosting investorsrsquo trade activities both locally

and internationally These figures enable us the opportunity to move forward with more strategic

initiatives and services that continue in catering to investorsrsquo demands and position us at the

forefront of promoting their businesses from Sharjah to the rest of the world

TOURISM

Dubai hotel room rates

Dubai hotels are set to register a small increase in average daily rates (ADR) for March the first in

almost a year according to new figures released by analysts STR

STRrsquos preliminary March 2018 data for Dubai indicated strong growth in both supply and demand

Based on daily data from March Dubai reported a 54 percent rise in supply against a 47 percent

increase in demand

15

Occupancy rose by 06 percent to 857 percent while ADR increased by 05 percent to AED75249

the STR figures showed while revenue per available room (RevPAR) fell marginally by 01 percent to

AED64497

STR said the increase in ADR would be the first for the market since April 2017 and only the second

overall since July 2014

STR analysts noted the rise in ADR could be due to the shift in Saudi school holidays which

occurred March 10-20

Overall performance remains consistent as demand (room nights sold) grows but not as fast as

supply they added

16

III MARKET TRENDS

1 Oil prices

17

2 Market General Index (DFMGI)

Results

Daily closing value

3 Gold Price

Updated Thursday 12 April 2018 0448 am GMT

18

IV EVENTS

14th International Property Show

Sultan bin Saeed Al Mansouri Minister of Economy inaugurated the highly-anticipated 14th

edition of the International Property Show (IPS) at the Dubai International Convention and

Exhibition Centre

This year the festival features lsquoCountry Pavilionsrsquo for Egypt and Europe

The improved IPS 2018 programme was developed in partnership with DLD the main partner to

the event and features a lsquoMega Property Salersquo under the Dubai Property Festival DPF which

offers exclusive deals for three days

DPF is the first real estate festival of its kind to showcase market-leading offers from UAE regional

and international developers in addition to banks real estate agents and property auction houses

providing investors with a one-stop shop where they can find complete packages of bargain deals

19

V REFERENCES 1 wwwdfmaemarket-datahistorical-data

2 wwwnasdaqcommarkets

3 wwwgoldpricesdubaicom

4 wwwwamaeendetails1395302680757

5 wwwzawyacomuaeenstoryExpo_2020_Dubai_driving_growth_in_construction_sector-

SNG_113913991

6 wwwthenationalaebusinesseconomydubai-s-private-sector-economy-eases-in-march-

but-remains-in-growth-1720007

7 wwwarabianbusinesscompolitics-economics393731-business-conditions-improve-in-

dubais-non-oil-private-sector

8 wwwarabianbusinesscomnews393671-dubais-secondary-real-estate-market-strong-in-

q1-report-shows

9 wwwarabianbusinesscomtravel-hospitality393825-dubai-hotel-room-rates-set-to-

register-rare-increase

10 wwwarabianbusinesscomtechnology393842-expo-2020-dubai-signs-cisco-as-digital-

partner

11 wwwarabianbusinesscomconstruction393793-firm-hired-for-fujairah-intl-airport-

expansion-project

12 wwwarabianbusinesscomretail394023-al-futtaim-unveils-festival-plaza-set-to-open-in-

late-2019

13 wwwwamaeendetails1395302681025

14 wwwwamaeendetails1395302680888

15 wwwwamaeendetails1395302680880

16 wwwwamaeendetails1395302681283

14

Invest in Sharjah identified top international investors in the emirate in 2017 as India UK USA

China and Saudi Arabia and reported that a total of approximately AED39 billion (US$105 billion)

was invested in different businesses last year in a total of 35 new ventures characterised by

domestic projects from the other emirates in the UAE and FDIs

The UAE Federal Competitiveness Authority has revealed that as of December 2016 the total FDI

stocks in Sharjah stood at AED 30 billion High-level projects which are undergoing sales

opportunities include the Azure Beach Resort project in Maryam Island developed by Eagle Hills

Sharjah Development Al Jada by Arada Al Mamsha by Alef Group Tilal City by Tilal Properties and

the Sharjah Waterfront City by the Sharjah Oasis Real Estate Development company

Mariam Nasser Al Suwaidi Deputy Director of the Department of Industrial Affairs highlighted

during the conference that in 2017 Sharjah underwent a five percent increase in its GDP with key

manufacturing industries such as construction wholesale and retail restaurants and hotels real

estate and business services ranging between six percent and nine percent in net growth

Al Suwaidi continued by unveiling that a total of 73000 trade licenses were issued in Sharjah

during 2017 with an average growth of two percent in comparison to that volume in 2016 as well

as a growth of 27 percent in total number of industrial licenses issued

Abdullah Sultan Al Owais Chairman of the Sharjah Chamber of Commerce and Industry SCCI said

Trade has been a key driver in Sharjahrsquos FDI growth where we issued a total of 105061

certificate of origin across all our four branches boosting investorsrsquo trade activities both locally

and internationally These figures enable us the opportunity to move forward with more strategic

initiatives and services that continue in catering to investorsrsquo demands and position us at the

forefront of promoting their businesses from Sharjah to the rest of the world

TOURISM

Dubai hotel room rates

Dubai hotels are set to register a small increase in average daily rates (ADR) for March the first in

almost a year according to new figures released by analysts STR

STRrsquos preliminary March 2018 data for Dubai indicated strong growth in both supply and demand

Based on daily data from March Dubai reported a 54 percent rise in supply against a 47 percent

increase in demand

15

Occupancy rose by 06 percent to 857 percent while ADR increased by 05 percent to AED75249

the STR figures showed while revenue per available room (RevPAR) fell marginally by 01 percent to

AED64497

STR said the increase in ADR would be the first for the market since April 2017 and only the second

overall since July 2014

STR analysts noted the rise in ADR could be due to the shift in Saudi school holidays which

occurred March 10-20

Overall performance remains consistent as demand (room nights sold) grows but not as fast as

supply they added

16

III MARKET TRENDS

1 Oil prices

17

2 Market General Index (DFMGI)

Results

Daily closing value

3 Gold Price

Updated Thursday 12 April 2018 0448 am GMT

18

IV EVENTS

14th International Property Show

Sultan bin Saeed Al Mansouri Minister of Economy inaugurated the highly-anticipated 14th

edition of the International Property Show (IPS) at the Dubai International Convention and

Exhibition Centre

This year the festival features lsquoCountry Pavilionsrsquo for Egypt and Europe

The improved IPS 2018 programme was developed in partnership with DLD the main partner to

the event and features a lsquoMega Property Salersquo under the Dubai Property Festival DPF which

offers exclusive deals for three days

DPF is the first real estate festival of its kind to showcase market-leading offers from UAE regional

and international developers in addition to banks real estate agents and property auction houses

providing investors with a one-stop shop where they can find complete packages of bargain deals

19

V REFERENCES 1 wwwdfmaemarket-datahistorical-data

2 wwwnasdaqcommarkets

3 wwwgoldpricesdubaicom

4 wwwwamaeendetails1395302680757

5 wwwzawyacomuaeenstoryExpo_2020_Dubai_driving_growth_in_construction_sector-

SNG_113913991

6 wwwthenationalaebusinesseconomydubai-s-private-sector-economy-eases-in-march-

but-remains-in-growth-1720007

7 wwwarabianbusinesscompolitics-economics393731-business-conditions-improve-in-

dubais-non-oil-private-sector

8 wwwarabianbusinesscomnews393671-dubais-secondary-real-estate-market-strong-in-

q1-report-shows

9 wwwarabianbusinesscomtravel-hospitality393825-dubai-hotel-room-rates-set-to-

register-rare-increase

10 wwwarabianbusinesscomtechnology393842-expo-2020-dubai-signs-cisco-as-digital-

partner

11 wwwarabianbusinesscomconstruction393793-firm-hired-for-fujairah-intl-airport-

expansion-project

12 wwwarabianbusinesscomretail394023-al-futtaim-unveils-festival-plaza-set-to-open-in-

late-2019

13 wwwwamaeendetails1395302681025

14 wwwwamaeendetails1395302680888

15 wwwwamaeendetails1395302680880

16 wwwwamaeendetails1395302681283

15

Occupancy rose by 06 percent to 857 percent while ADR increased by 05 percent to AED75249

the STR figures showed while revenue per available room (RevPAR) fell marginally by 01 percent to

AED64497

STR said the increase in ADR would be the first for the market since April 2017 and only the second

overall since July 2014

STR analysts noted the rise in ADR could be due to the shift in Saudi school holidays which

occurred March 10-20

Overall performance remains consistent as demand (room nights sold) grows but not as fast as

supply they added

16

III MARKET TRENDS

1 Oil prices

17

2 Market General Index (DFMGI)

Results

Daily closing value

3 Gold Price

Updated Thursday 12 April 2018 0448 am GMT

18

IV EVENTS

14th International Property Show

Sultan bin Saeed Al Mansouri Minister of Economy inaugurated the highly-anticipated 14th

edition of the International Property Show (IPS) at the Dubai International Convention and

Exhibition Centre

This year the festival features lsquoCountry Pavilionsrsquo for Egypt and Europe

The improved IPS 2018 programme was developed in partnership with DLD the main partner to

the event and features a lsquoMega Property Salersquo under the Dubai Property Festival DPF which

offers exclusive deals for three days

DPF is the first real estate festival of its kind to showcase market-leading offers from UAE regional

and international developers in addition to banks real estate agents and property auction houses

providing investors with a one-stop shop where they can find complete packages of bargain deals

19

V REFERENCES 1 wwwdfmaemarket-datahistorical-data

2 wwwnasdaqcommarkets

3 wwwgoldpricesdubaicom

4 wwwwamaeendetails1395302680757

5 wwwzawyacomuaeenstoryExpo_2020_Dubai_driving_growth_in_construction_sector-

SNG_113913991

6 wwwthenationalaebusinesseconomydubai-s-private-sector-economy-eases-in-march-

but-remains-in-growth-1720007

7 wwwarabianbusinesscompolitics-economics393731-business-conditions-improve-in-

dubais-non-oil-private-sector

8 wwwarabianbusinesscomnews393671-dubais-secondary-real-estate-market-strong-in-

q1-report-shows

9 wwwarabianbusinesscomtravel-hospitality393825-dubai-hotel-room-rates-set-to-

register-rare-increase

10 wwwarabianbusinesscomtechnology393842-expo-2020-dubai-signs-cisco-as-digital-

partner

11 wwwarabianbusinesscomconstruction393793-firm-hired-for-fujairah-intl-airport-

expansion-project

12 wwwarabianbusinesscomretail394023-al-futtaim-unveils-festival-plaza-set-to-open-in-

late-2019

13 wwwwamaeendetails1395302681025

14 wwwwamaeendetails1395302680888

15 wwwwamaeendetails1395302680880

16 wwwwamaeendetails1395302681283

16

III MARKET TRENDS

1 Oil prices

17

2 Market General Index (DFMGI)

Results

Daily closing value

3 Gold Price

Updated Thursday 12 April 2018 0448 am GMT

18

IV EVENTS

14th International Property Show

Sultan bin Saeed Al Mansouri Minister of Economy inaugurated the highly-anticipated 14th

edition of the International Property Show (IPS) at the Dubai International Convention and

Exhibition Centre

This year the festival features lsquoCountry Pavilionsrsquo for Egypt and Europe

The improved IPS 2018 programme was developed in partnership with DLD the main partner to

the event and features a lsquoMega Property Salersquo under the Dubai Property Festival DPF which

offers exclusive deals for three days

DPF is the first real estate festival of its kind to showcase market-leading offers from UAE regional

and international developers in addition to banks real estate agents and property auction houses

providing investors with a one-stop shop where they can find complete packages of bargain deals

19

V REFERENCES 1 wwwdfmaemarket-datahistorical-data

2 wwwnasdaqcommarkets

3 wwwgoldpricesdubaicom

4 wwwwamaeendetails1395302680757

5 wwwzawyacomuaeenstoryExpo_2020_Dubai_driving_growth_in_construction_sector-

SNG_113913991

6 wwwthenationalaebusinesseconomydubai-s-private-sector-economy-eases-in-march-

but-remains-in-growth-1720007

7 wwwarabianbusinesscompolitics-economics393731-business-conditions-improve-in-

dubais-non-oil-private-sector

8 wwwarabianbusinesscomnews393671-dubais-secondary-real-estate-market-strong-in-

q1-report-shows

9 wwwarabianbusinesscomtravel-hospitality393825-dubai-hotel-room-rates-set-to-

register-rare-increase

10 wwwarabianbusinesscomtechnology393842-expo-2020-dubai-signs-cisco-as-digital-

partner

11 wwwarabianbusinesscomconstruction393793-firm-hired-for-fujairah-intl-airport-

expansion-project

12 wwwarabianbusinesscomretail394023-al-futtaim-unveils-festival-plaza-set-to-open-in-

late-2019

13 wwwwamaeendetails1395302681025

14 wwwwamaeendetails1395302680888

15 wwwwamaeendetails1395302680880

16 wwwwamaeendetails1395302681283

17

2 Market General Index (DFMGI)

Results

Daily closing value

3 Gold Price

Updated Thursday 12 April 2018 0448 am GMT

18

IV EVENTS

14th International Property Show

Sultan bin Saeed Al Mansouri Minister of Economy inaugurated the highly-anticipated 14th

edition of the International Property Show (IPS) at the Dubai International Convention and

Exhibition Centre

This year the festival features lsquoCountry Pavilionsrsquo for Egypt and Europe

The improved IPS 2018 programme was developed in partnership with DLD the main partner to

the event and features a lsquoMega Property Salersquo under the Dubai Property Festival DPF which

offers exclusive deals for three days

DPF is the first real estate festival of its kind to showcase market-leading offers from UAE regional

and international developers in addition to banks real estate agents and property auction houses

providing investors with a one-stop shop where they can find complete packages of bargain deals

19

V REFERENCES 1 wwwdfmaemarket-datahistorical-data

2 wwwnasdaqcommarkets

3 wwwgoldpricesdubaicom

4 wwwwamaeendetails1395302680757

5 wwwzawyacomuaeenstoryExpo_2020_Dubai_driving_growth_in_construction_sector-

SNG_113913991

6 wwwthenationalaebusinesseconomydubai-s-private-sector-economy-eases-in-march-

but-remains-in-growth-1720007

7 wwwarabianbusinesscompolitics-economics393731-business-conditions-improve-in-

dubais-non-oil-private-sector

8 wwwarabianbusinesscomnews393671-dubais-secondary-real-estate-market-strong-in-

q1-report-shows

9 wwwarabianbusinesscomtravel-hospitality393825-dubai-hotel-room-rates-set-to-

register-rare-increase

10 wwwarabianbusinesscomtechnology393842-expo-2020-dubai-signs-cisco-as-digital-

partner

11 wwwarabianbusinesscomconstruction393793-firm-hired-for-fujairah-intl-airport-

expansion-project

12 wwwarabianbusinesscomretail394023-al-futtaim-unveils-festival-plaza-set-to-open-in-

late-2019

13 wwwwamaeendetails1395302681025

14 wwwwamaeendetails1395302680888

15 wwwwamaeendetails1395302680880

16 wwwwamaeendetails1395302681283

18

IV EVENTS

14th International Property Show

Sultan bin Saeed Al Mansouri Minister of Economy inaugurated the highly-anticipated 14th

edition of the International Property Show (IPS) at the Dubai International Convention and

Exhibition Centre

This year the festival features lsquoCountry Pavilionsrsquo for Egypt and Europe

The improved IPS 2018 programme was developed in partnership with DLD the main partner to

the event and features a lsquoMega Property Salersquo under the Dubai Property Festival DPF which

offers exclusive deals for three days

DPF is the first real estate festival of its kind to showcase market-leading offers from UAE regional

and international developers in addition to banks real estate agents and property auction houses

providing investors with a one-stop shop where they can find complete packages of bargain deals

19

V REFERENCES 1 wwwdfmaemarket-datahistorical-data

2 wwwnasdaqcommarkets

3 wwwgoldpricesdubaicom

4 wwwwamaeendetails1395302680757

5 wwwzawyacomuaeenstoryExpo_2020_Dubai_driving_growth_in_construction_sector-

SNG_113913991

6 wwwthenationalaebusinesseconomydubai-s-private-sector-economy-eases-in-march-

but-remains-in-growth-1720007

7 wwwarabianbusinesscompolitics-economics393731-business-conditions-improve-in-

dubais-non-oil-private-sector

8 wwwarabianbusinesscomnews393671-dubais-secondary-real-estate-market-strong-in-

q1-report-shows

9 wwwarabianbusinesscomtravel-hospitality393825-dubai-hotel-room-rates-set-to-

register-rare-increase

10 wwwarabianbusinesscomtechnology393842-expo-2020-dubai-signs-cisco-as-digital-

partner

11 wwwarabianbusinesscomconstruction393793-firm-hired-for-fujairah-intl-airport-

expansion-project

12 wwwarabianbusinesscomretail394023-al-futtaim-unveils-festival-plaza-set-to-open-in-

late-2019

13 wwwwamaeendetails1395302681025

14 wwwwamaeendetails1395302680888

15 wwwwamaeendetails1395302680880

16 wwwwamaeendetails1395302681283

19

V REFERENCES 1 wwwdfmaemarket-datahistorical-data

2 wwwnasdaqcommarkets

3 wwwgoldpricesdubaicom

4 wwwwamaeendetails1395302680757

5 wwwzawyacomuaeenstoryExpo_2020_Dubai_driving_growth_in_construction_sector-

SNG_113913991

6 wwwthenationalaebusinesseconomydubai-s-private-sector-economy-eases-in-march-

but-remains-in-growth-1720007

7 wwwarabianbusinesscompolitics-economics393731-business-conditions-improve-in-

dubais-non-oil-private-sector

8 wwwarabianbusinesscomnews393671-dubais-secondary-real-estate-market-strong-in-

q1-report-shows

9 wwwarabianbusinesscomtravel-hospitality393825-dubai-hotel-room-rates-set-to-

register-rare-increase

10 wwwarabianbusinesscomtechnology393842-expo-2020-dubai-signs-cisco-as-digital-

partner

11 wwwarabianbusinesscomconstruction393793-firm-hired-for-fujairah-intl-airport-

expansion-project

12 wwwarabianbusinesscomretail394023-al-futtaim-unveils-festival-plaza-set-to-open-in-

late-2019

13 wwwwamaeendetails1395302681025

14 wwwwamaeendetails1395302680888

15 wwwwamaeendetails1395302680880

16 wwwwamaeendetails1395302681283