Rolls-Royce, the global power systems company, has opened a new office in Abu Dhabi to further enhance its growing activities in the emirate and the wider region, said a press statement on Monday.

The office, located in the new “HQ” building, developed by Aldar Properties, will become home to all Rolls-Royce employees in Abu Dhabi.

Rob Watson, Rolls-Royce, Regional Director – Middle East, said: “This is an exciting time and an important milestone in the continuing development of our business in the UAE. Rolls-Royce has a long and proud history of serving customers across the Middle East for over 75 years and this new office in Abu Dhabi demonstrates the strength of our commitment here for the long-term. Expanding our presence will enable us to work more closely with our customers and stakeholders in this important market.”

The Rolls-Royce Abu Dhabi office will be an important platform for the Group’s education initiatives to promote science and technology to Emiratis. In line with the Abu Dhabi Economic Vision 2030, these initiatives will help encourage national workforce participation and employability and increase labour productivity in line with international benchmarks. More info

Rents in Abu Dhabi fell by 10 per cent in the second quarter as supply continued to outweigh demand amidst expectations that this phenomenon will prevail for the rest of the year whereby up to 14, 000 residential units, primarily high end, will be handed over in Abu Dhabi by the end of 2011.

With regard to office supply, there is an oversupply. The total oversupply of office space in Abu Dhabi is expanding, but it is important to note that only 11 per cent of the current stock qualifies as international Grade A quality..

Several large scale office projects are expected to be delivered this year, including more buildings at Sowwah Square, Capital Plaza, Etihad Towers, International Towers, The Sky and Sun Towers, Infinity Tower, the Guardian Towers, the Capital Towers, the Marina Square, Al Bustan Complex, AL Muneera and Al Zeina projects, Yas Island Villas and Saadiyat Beach. As for office supply, Tower One at Sowwah Square and Guardian Tower at Danet Abu Dhabi.

The Al Raha Beach development, which is being completed and delivered in phases, will accommodate 120,000 residents. Aldar will also hand over Al Noor Tower, an office tower in Al Muneera during the second half of 2011.

Aldar’s portfolio of projects in Abu Dhabi is valued at more than $75 billion, (Dh275.4 billion).

Moreover, Aldar announced in July, 2011 that its 278m, 59 storey Trust Tower, one of the tallest office developments in the capital and the centerpiece of the capital’s downtown district is available for pre-lease.

The Emporium Shopping Mall will be completed in the third quarter of 2012 and the residential Domain Tower, home to 274 residential units will be finished in 2012, according to Aldar statement.

The Strata Tower will be the tallest building in Al Dana precinct once completed in 2011. The tower’s height is 160 meter high, and the Strata Tower will be the tallest building in the Al Dana precinct.

The whole Saadiyat Island Projects estimated cost would amount up to $27 billion (Dh97.2). It houses two hotels: The St Regis Saadiyat Island Resort and the AED 1 billion Park Hyatt Abu Dhabi. Both are expected to be completed by the end of 2011.

The Rocco Forte Abu Dhabi development, a joint venture between TDIC and Al Farida Investments Company LLC, is the brand’s first venture into the Middle East. It is located on Sheikh Rashid bin Saeed Al Makhtoum Street.

The Regent Emirates Pearl is a joint venture between TDIC and Atlas Group. The expected cost of the resort will be AED 500 million. The tower will stand 255 tall with 47 floors. It is expected to be finished in 2012, according to TDIC estimations.

Capital Gates distinctive futuristic design, aesthetic splendor and technical excellence made it a modern marvel and a celebration of human achievement that reflects dynamism of Abu Dhabi..

Investment bank Rasmala reckons a 20 per cent downside potential to property prices in Dubai, estimating that an additional 35,000 homes will be delivered in the emirate between 2011 and 2013 – boosting the existing housing stock of an estimated 330,000 units by about 10 per cent.

“We believe the Dubai residential market may see delivery of 30,000-35,000 units of apartments and villas combined between 2011 and 2013, upon an existing supply base of roughly 330,000 units. This translates into roughly 10 per cent incremental supply over three years, which we believe will further depress real state asset values,” the bank said today in a report on the UAE’s real estate market.

“Our house view remains that Dubai residential sales may bottom out at Dh600-650 per sq ft, hence current price levels of Dh750 per sq ft imply an additional 15-20 per cent downside potential to property prices,” it added.

On the other hand, analysts at the investment bank maintain that Abu Dhabi, which will see more houses entering the market than Dubai, will see at least a 20 per cent drop in residential prices. “We expect Abu Dhabi to lag Dubai by about nine to 12 months on the property clock, and we estimate approximately 40,000 units will be delivered there between 2011 and 2013 on an existing install base of roughly 200,000 units, hence 20 per cent incremental supply over three years,” the report said.

“Although we believe Abu Dhabi will retain a certain premium over Dubai in terms of rents and house prices, both emirates markets are largely correlated in our view, given a similarity in demographics (80 per cent-plus expat community), marginal mortgage financing, substitution effect and meaningful supply-demand mismatches between 2011 and 2013. We expect Abu Dhabi to experience at least 20 per cent declines in residential values from current levels of roughly Dh1,000 per sq ft prior to reaching a sustainable trough,” it said.

Rasmala, nevertheless, sees a number of long-term positives for the UAE’s property market, including the receding impact of the Arab Spring on property investments, as well as the affirmative effect of new property visa rules in the country.

“In addition to regional risk subsiding, for UAE specifically visa law changes may have marginal benefits in the near term and potentially greater benefits in the long run,” the Rasmala report said.

“Increasing UAE residency visa tenures from six months to three years for real estate investors is likely a positive development for the sector and, in our view, supports broader confidence. However, a direct tangible impact on property prices is difficult to estimate in the foreseeable future. We believe current property transactions are primarily driven by supply-demand dynamics and associated risk-rewards, while visa implications are more secondary catalysts.”

The investment bank has therefore upgraded regional property benchmark Emaar Properties to a Buy and reiterated Drake and Scull International as a Buy while keeping Aldar, Sorouh and Arabtec as Holds. “We believe the regional risk profile and investor sentiment is gradually turning positive, so we reduce our risk premium forecasts across the board as we ease through the uncertain Arab uprising phase.”

Abu Dhabi home rental rates continue to slide, providing opportunities for house hunters looking for bargains.

Al Raha Beach

The average rental price dropped 9 per cent in the second quarter from the previous, according to data released Tuesday by Asteco, the property management firm.

Rates are down anywhere from 25 to 40 per cent in the last year, depending on the neighbourhood, said Paul Maisfield, general manager of Asteco’s Abu Dhabi office

“It’s a tenant-led market at the moment,” Mr Maisfield said. “A lot of supply is coming on line when demand is not there.”

Two bedroom apartments in a quality development on the Corniche are now renting for between Dh140,000 and Dh170,000 a year, the company reported. One of the few exceptions to the trend is Al Bandar on Raha Beach, where two bedroom apartments are attracting between Dh140,000 and Dh180,000.

Villas in Al Reef also witnessed a small increase in rates.

But the completion of several new projects, including apartments in Al Zeina in Al Raha and 516 townhomes in Al Reef, is likely to continue to drive down rates.

“We haven’t had an influx of new people coming in,” Mr Maisfield said. “It’s just bad timing for the market.”

More than 16,000 residential units are scheduled for completion in the next year, according to Jones Lang Lasalle. Projects on Reem Island, Raha Beach and Etihad Towers will offer new choices for renters.

“It will be an interesting six months,” Mr Maisfield said. “These developments will set important benchmarks for the market.”

A two-bedroom apartment is available for Dh125,000 a year in Sun and Sky towers on Reem Island, which started handing over units earlier this year.

“Everybody else will have to adjust accordingly,” Mr Maisfield said.

Gardens Plaza, a new shopping and community centre in Al Raha Gardens, has been completed by Aldar Properties and will open to customers on June 4. The latest addition to Aldar’s growing retail portfolio, Gardens Plaza will offer a range of retail and leisure opportunities to residents of Al Raha Gardens and surrounding communities in Khalifa City and Al Raha Beach.

Fred Douglas, Director of Leasing at Aldar Properties said: “We are pleased to announce the opening of our new Gardens Plaza Centre at Al Raha Gardens. It offers convenient retail outlets and locations for the residents and the surrounding areas of Khalifa City to come together. There is a real demand for community retail concepts that meet the demand of local catchment areas – we are committed to the development of sustainable communities in Abu Dhabi and this is a tangible example of how we are delivering this.”

Located between the Samra and Al Mariyah Communities at the heart of Al Raha Gardens, this community retail centre joins a range of kiosks in three locations through the development that were opened in September 2010.

Gardens Plaza has a Gross Leasable Area (GLA) of 2,300 sqm, and includes a gym, community hall and 85 car parking spaces. It features a range of coffee shops and restaurants including Jones the Grocer, Zyng Asian Grill and the central supermarket – Al Safa supermarket – is nearing completion and will open shortly.

Architecturally, the development blends traditional Arabian and modern themes, with a double height covered entrance area, landscaped courtyard areas and a 2,500sqm outdoor garden and play area with external seating. Gardens Plaza will be open from 9:00am until 10:00pm, seven days a week.

Abu Dhabi’s biggest developer Aldar Properties does not need financial support from the government of Abu Dhabi, a top official said.

“We are in a stable condition, I don’t think there will be a need,”  Chief Executive Officer Sami Asad told reporters on the sidelines of the Arabian World Construction Summit here in 
the capital.

He said: “Financially, we’re quite good.” In January, Aldar recognised a Dh10.5 billion impairment charge relating to the value of its assets.

The developer announced a number of financial steps including the transfer of certain infrastructure assets on Yas Island that included Ferrari World Abu Dhabi Theme Park, roads, bridges, marine infrastructure and land for
 Dh10.9 billion.

Other measures included placement of a convertible bond worth Dh2.8 billion with Mubadala Development Company and sale of housing units and land for Dh5.5 billion to the Government of Abu Dhabi.

The property firm returned to profit in the first quarter of the year when it earned Dh189.1 million over a net loss of Dh314.2 million. The revenue rose to Dh784.7 million in the quarter ending 31 March on Dh227 million, in the same period last year.

The chief executive officer said “Aldar will deliver over 2,500 units this year in the Al Muneera and Al Zeina developments.

Other deliveries include 150 car show rooms at Motor World and one commercial tower in Al Muneera project on Raha Beach. Aldar’s diverse portfolio includes commercial developments such as Central Market, Al Raha Beach, Yas Island ,including Yas Mall and Yas Hotel, Head Quarter, and Al Bateen Park, and government projects such as the Al Falah Emirati housing project.

In addition, the company continues to deliver major infrastructure works, as well as significant projects on behalf of Abu Dhabi companies such as Mubadala.

Abu Dhabi Tourism Authority (ADTA) will later this month launch a six-city road show around the GCC as it looks to build on rising inbound regional momentum and entice families from throughout the region to its fourth ‘Summer in Abu Dhabi’ festival which kicks off next month (June).

The authority and key stakeholders are visiting Muscat, Doha, Kuwait, Jeddah, Dammam and Riyadh staging a press conference in each of the countries and travel trade promotional evenings in each destination.

The Abu Dhabi delegation includes representatives of: Al Raha Beach Resort Abu Dhabi; Cristal Hotels & Resorts; Al Ain’s new Ayla Hotel; Danat’s Jebel Dhanna Resort; the opulent Emirates Palace hotel; the five-star InterContinental Abu Dhagi; Net Tours & Travel; Nirvana Travel; the award-winning Qasr Al Sarab Desert Resort; the four-star Aloft Abu Dhabi which is next door to ADNEC; the four-star Tilal Liwa Hotel and Mourouj Hotel Apartments.

The fourth ‘Summer in Abu Dhabi’ festival, will be a month-long, fun-filled extravaganza of family-centric activities, award-winning international acts and shows, premium edutainment concepts and value-driven ticket, hotel and attraction deals.

The expanded event’s summer promotions at various Abu Dhabi attractions start on June 15, before four multi-purpose halls at Abu Dhabi National Exhibition Centre (ADNEC) – triple the size of last year’s ADNEC offering – open to the public on June 30. Running until July 30, Summer in Abu Dhabi is organised by ADTA to engage UAE residents and increase inbound visitor numbers to the UAE capital during the traditionally quieter summer season.

GCC families are primary targets for the festival, which includes an array of discounts and offers through the emirate’s attractions and hotels all aimed at pulling in a festival audience of between 65,000 and 70,000. The deals, which come into effect June 15, include a ‘Kids Go Free’ offer at the fabulous Ferrari World Abu Dhabi – the world’s biggest indoor theme park and home to ‘Formula Rossa’, the world’s fastest rollercoaster – for kids under 1.5 metres in height. Entry will be free for those sporting a Summer in Abu Dhabi ADNEC ticket.

Deals will run throughout 12 mainline attractions, which include Big Bus Tours, Caracal Shooting Club, Al Ain Wildlife Park & Resort, the vast Al Forsan International Sports Resort, the thrilling Al Ain Raceway, speedy Yellow Boats, Falcon Aviation’s helicopter tours, Al Ain’s refurbished Hili Fun City, the iconic Yas Marina Circuit, Abu Dhabi Golf Club and Saadiyat Beach Golf Club.

“The deals range from ‘Buy Two Get One Free’ packages for golf tee-times and city tours, to discounted prices and ‘Two For One’ offers at karting tracks, zoos and activity clubs,” said Faisal Al Sheikh, Events Manager, ADTA. “Visitors will find some of the best summer deals around right across Abu Dhabi’s expanded portfolio of world-class hotels, resorts and hotel apartments.”

The GCC, second only to the UK, remains a primary source market for Abu Dhabi, with the first quarter of this year seeing some 29,253 GCC nationals staying in hotels throughout the emirate – a 10 per cent rise on the same period last year. The region’s continued growth comes despite a three per cent fall in Omani guests during Q1, down from 5,371 to 5,223.

“We remain on course to achieve our target of accruing two million hotel guest nights this year. Every event in our dynamic year-round calendar meets the objective of raising the profile of the destination, which continues to mature and offers more – and at better value – than ever before with hotel rates having reduced by almost a quarter in the past year,” added Al Sheikh.

At the forefront of action in ADNEC show halls 9-11, the all-new ‘Adventure World’ will find a champion who completes the 11 ‘telematch’-style activities in the fastest time. Elsewhere, ‘Smurf World’, a village filled with fun activities dedicated to the little blue characters of comic and television fame. Their popularity is summed up by the 10 million Smurf CDs sold in the last 3 years alone and the upcoming ‘Smurfs’ movie is due out this summer. And for kids that want to show-off their ambitions, there is ‘Career World’, where they can dress up and land any one of 12 dream careers.

Elsewhere, 13 Cartoon Network characters appearing in ‘Cartoonival’ – the renowned kids’ TV network’s debut live-action spectacle – top the daily programme of state-of-the-art shows in Abu Dhabi Hall, the GCC’s largest indoor entertainment venue. Similarly, ‘Show World’ – a specially-constructed, 120-capacity theatre – will feature twice-daily shows by international favourites such as SpongeBob SquarePants, Dora The Explorer, as well as Marvel’s Thor, Spiderman, Captain America and Green Goblin.

With ADNEC entry rates of AED20 for children aged up to 12 years old – toddlers up to two years old go free – and AED40 for adults covering the majority of ADNEC activities, visitors can try out all the activities and receive two free tokens for fairground rides. Tickets for the Cartoonival show are available at boxofficeme.com.

“We have packed the programme this year to live up to the expectations of over 90% of last year’s visitors who said they would return and the more than two thirds who said they would recommend it to others in a post event survey,” said Al Sheikh.

For the first time in Summer in Abu Dhabi history, a host of deals, discounts and attractive packages at attractions across Yas Island, Abu Dhabi’s purpose-built entertainment destination just 10 minutes drive from Abu Dhabi International Airport, has been incorporated into the event schedule.

Lower earnings by nearly 30 companies listed on Abu Dhabi’s bourse pulled down the combined income of most listed firms by 6.5 per cent in the first quarter of 2011 despite higher income by banks.

Balance sheets published in the semi official daily Al Ittihad showed banks were one of two sectors to record higher net profits in the first quarter thanks to better investment income.

The real estate sector, which was worst hit by the 2008 global financial crisis, recorded a surge in net income after Aldar properties, the largest real estate firm in the UAE, rebounded into profits in the first quarter of 2011 following a loss in the fourth quarter of 2010.

From around Dh8.17 billion in the first quarter of 2010, the consolidated net earnings of 51 listed companies that have released quarter results dipped by 6.5 per cent to Dh7.64 billion in the first quarter of this year, the report showed.
Higher earnings were reported by only 17 firms while 30 companies recorded lower income and the others suffered from losses.

The banking sector, which had been jolted by the global crisis and regional debt default problems, maintained its recovery and recorded a 8.3 per growth in net profits. From around Dh3.63 billion, the profits of 14 listed banks swelled to nearly Dh3.93 billion in the same period.

While there was growth in the government-controlled Union National Bank and the Abu Dhabi Islamic Bank, such major banks as National Bank of Abu Dhabi and First Gulf Bank reported lower earnings.

In the real estate sector, Aldar’s recovery lifted the sector’s total income, with the combined profits leaping by nearly 72 per cent to Dh300.9 million in the first quarter of 2011 from Dh174.2 million in the first quarter of 2010, according to their balance sheets.

The surge was due to a sharp recovery in Aldar’s earnings, which stood at Dh189.1 million compared with a loss of Dh314.2 million.

The income of Surouh, another key property developer, tumbled by around 42 per cent while that of Ras Al Khaimah Properties dipped by nearly 16.5 per cent in the same period.

The net profits of the telecommunication sector plunged by 22.7 per cent to Dh2.53 billion from Dh3.27 billion after a nine-per cent decline in the income of the UAE’s Etisalat to Dh1.8 billion from Dh1.97 billion. There was also a drop in the earnings of foreign listed telcom firms, including those of Qatar and Sudan.

The report showed there was a decline in the net income of other sectors, including energy, insurance, services and manufacturing.

“Despite less-than-expected results by leading companies, the banking sector is considered to be a good performer…most banks achieved good results in the first quarter and this indicates an improvement in the domestic economy,” said Mohammed Yassin, a well-known stockbroker based in Abu Dhabi.

Abu Dhabi The Abu Dhabi Education Council (Adec) is developing a new school model (NSM) in efforts to improve teaching quality, learning environment, school leadership and parental involvement across public schools.

Principals and vice-principals, who play a key role in the success of the NSM journey and the Kafa’ah Programme, were invited on Thursday to a presentation by Adec Director General Dr Mugheer Khamis Al Khaili on the new initiatives at Al Raha Beach Theatre.

The Kafa’ah Programme defines a range of Adec projects aimed at enhancing the performance of public schools and in turn improving the quality of learning — driving the implementation of the NSM.

Key areas under the Kafa’ah programme include the provision of new schools and facilities, Public Private Partnership (PPP) phase-out, and the development of new policies that will improve efficiency while maintaining quality.

“PPP is an initiative which was designed to use the expertise of private school operators to enhance public school operations. The initiative has been successful in bringing about rapid improvements in public schools over the past five years including improvements in attainment levels, improved quality of school leadership and teaching.

Facilities

“The schools are now ready for the PPP completion and will be provided with ongoing support to ensure a smooth transition. They are capable of running independently,” said Al Khaili.

Keeping in mind the fact that various schools across the emirate of Abu Dhabi are under-utilised, lack modern facilities and infrastructure needed to deliver high-quality education to students, Al Khaili declared that “Adec’s schools strategy involves renovating schools and building new schools with improved Information Communications Technology (ICT) infrastructure and sports facilities”.

Twenty-three new schools are planned for the emirate, of which 20 are expected to be ready by the beginning of the academic year 2011/2012 and three by the beginning of the second term of the same year.

Final applications are now being accepted for the new intake of Aldar‘s Leadership Excellence Applied Diploma (LEAD) which will begin classes on 25 May 2011.

The LEAD programme is delivered by Cambridge University’s Judge Business School, one of the world’s leading business schools and was originally created to develop the leadership skills and competencies of future Emirati business leaders in both the private and public sectors.

The LEAD programme aims to strategically develop leadership qualities, provide a foundation for the constantly changing business environment in the UAE, sharpen understanding for trends and expand analytical abilities.

All teaching is carried out by University of Cambridge Faculty and Fellows, combining the latest research with practical industry insights and further optional modules are available in Cambridge to create a truly bespoke leadership programme. All sessions are held from 4pm to 8pm, allowing students to participate without having to leave full time employment.

Bayan Al Hosany, Director of Human Resources, Aldar , said:

“Limited places remain on our diploma programme for Abu Dhabi’s future business leaders which restarts at the end of this month. This scheme is designed to help students understand Abu Dhabi in the strategic global context and respond to business challenges through innovation.

I would like to thank Cambridge University Judge Business School and our partners: the Executive Council, TDIC, Injazat, Abu Dhabi Commercial Bank, Dolphin Energy, the Environment Agency Abu Dhabi and Al Fahim group – for their ongoing support.”

For further details of the LEAD programme, or to make enquiries about registration please contact the LEAD team on telephone: 02-810-5576, Email: Lead@aldar.com