Big 5 opens: Mega projects and market recovery entices industry

Updated 25 November 2013
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Big 5 opens: Mega projects and market recovery entices industry

Sheikh Hamdan bin Rashid Al Maktoum, deputy ruler of Dubai, officially inaugurated The Big 5, Middle East Concrete and PMV Live 2013 at the Dubai World Trade Center.
With a history of more than 33 years in the region, the event has grown 10 percent this year, and brings together more than 2,500 exhibitors from 65 countries with an anticipated 60,000 construction industry professionals on site over the course of four days.
Professionals from the construction industry gather together to showcase and source new, innovative and sustainable products, see the latest trends, get an update on regulations impacting design and build, and identify new markets and business opportunities.
Opening alongside The Big 5 will be Middle East Concrete, the largest event for the concrete industry showcasing innovative concrete products, technical seminars and live product demonstrations, as well as PMV Live, an interactive event for the plant, machinery and vehicle industry highlighting the latest heavy vehicles and related equipment throughout the four day event.
Andy White, group event director for The Big 5 2013, said the event continues to grow with each edition and is still considered the region’s most important event for the building and construction industry.
“This year The Big 5 is once again giving architects, interior designers, contractors, developers and all other construction professionals, access to the full spectrum of products. Our educational program has also expanded this year giving our visitors access to hundreds of free seminars, workshops and regulatory updates,” he was quoted as saying in a press release received here.
As part of The Big 5, international and regional experts will be addressing industry issues such as sustainability and low energy emitting materials, project management in construction, building interior trends, façade design, fire safety and managing aging structural asset portfolios at over 100 free to attend seminars running throughout the event. Best in class studies will be presented during the Sustainable Design & Construction Conference including the LEED Platinum rated DEWA building and the futuristic White Sky iHouse.
Dubai Municipality will also be presenting on the update to its Green Building Codes, due to go live from January 1, at a free to attend seminar on the 25 November.
This year’s event also includes a new arena specifically dedicated to building interiors, bringing together a wide range of products and services catering to this sector of the industry.
The new arena provides a selective platform for this increasingly influential market segment, currently worth around $10 million within the GCC.
In addition to the new arena, the exhibition will be further broken down into product specific sectors, including HVAC, Coatings, Adhesives & Sealants, Kitchens & Bathrooms, Windows & Doors, Steel, Marble, Slate & Ceramics, Water Technology and General Construction. The show ends on Thursday.


Dubai real estate market recovery to be seen as of 2022: S&P

Updated 20 February 2019
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Dubai real estate market recovery to be seen as of 2022: S&P

  • The outlook on property was part of a challenging assessment of the credit-worthiness of the emirate
  • S&P was generally comfortable with the credit ratings of the emirate’s banking system

DUBAI: S&P Global, the ratings agency, painted a grim picture for the real estate sector in Dubai, with a meaningful recovery in property prices expected only after 2022.
At a presentation to journalists in the Dubai International Financial Center, S&P analyst Sapna Jagtiani said that under the firm’s “base case scenario,” the Dubai real estate market would fall by between 5 and 10 percent this year, roughly the same as the fall in 2018, which would bring property prices to the levels seen at the bottom of the last cycle in 2010, in the aftermath of the global financial crisis.
“On the real estate side we continue to have a very grim view of the market. While we expect prices to broadly stabilize in 2020, we don’t see a meaningful recovery in 2021. Relative to the previous recovery cycle, we believe it will take longer time for prices to display a meaningful recovery,” she said.
S&P’s verdict adds to several recent pessimistic assessments of the Dubai real estate market. Jagtiani said that conditions in the other big UAE property market, in Abu Dhabi, were not as negative, because “Abu Dhabi never did ramp up as much in 2014 and 2015 as Dubai.” S&P does not rate developers in the capital.
She added that a “stress scenario” could arise if government and royal family related developers — such as Emaar Properties, Meraas, Dubai Properties and Nakheel — which have attractive land banks and economies of scale, continue to launch new developments.
“In such a scenario, we think residential real estate prices could decline by 10-15 percent in 2019 and a further 5-10 percent in 2020. In this case, we expect no upside for Dubai residential real estate prices in 2021, as we expect it will take a while for the market to absorb oversupply,” she said.
S&P recently downgraded Damac, one of the biggest Dubai-based developers, to BB- rating, on weak market prospects.
However, Jagtiani said that, despite the “significant oversupply” from existing projects, several factors should held stabilize the market: Few, if any, major product launches; improved affordability and “bargain hunting” by bulk buyers; and a resurgence of Asian, especially Chinese, investor interest in the market.
Jagtiani also said that government measures such as new ownership and visa regulations and reduction in government fees could help prevent prices falling more sharply, as well as “increased economic activity related to Dubai Expo 2020, which is expected to attract about 25 million visitors to the emirate.”
The outlook on property was part of a challenging assessment of the credit-worthiness of the emirate. “In our view, credit conditions deteriorated in Dubai in 2018, reducing the government’s ability to provide extraordinary financial support to its government related entities (GREs) if needed,” S&P said in a report. “The negative outlook on Dubai Electricity and Water
Authority (DEWA) partly reflects our concern that a real estate downturn beyond our base case could out increased pressure on government finances,” the report said.
It pointed out that about 70 percent of government revenues come from non-tax sources, including land transfer and mortgage registration fees, as well as charges for housing and municipality liabilities, as well as dividends from real estate developers it controls, like Emaar and Nakheel.
S&P was generally comfortable with the credit ratings of the emirate’s banking system, which has an estimated 20 percent exposure to real estate. “Banks in the UAE tend to generally display a good level of profitability and capitalization, giving them a good margin to absorb a moderate increase in risks,” the report said.