United Arab Emirates Real Estate Report Q3 2012

CONTENTS
Executive Summary ......................................................................................................................................... 5
SWOT Analysis ................................................................................................................................................. 6
UAE Real Estate Industry SWOT ........................................................................................................................................................................... 6
UAE Political SWOT ............................................................................................................................................................................................. 7
UAE Economic SWOT ........................................................................................................................................................................................... 7
UAE Business Environment SWOT ........................................................................................................................................................................ 8

Real Estate Market Overview .......................................................................................................................... 9

Market Analysis Office ................................................................................................................................ 14
Rents and Yields................................................................................................................................................................................................... 14
Table: Historic Office Rents, 2010-2011 (US$ per m2/month) ............................................................................................................................. 14
Table: Net Office Yields, 2011-2012 .................................................................................................................................................................... 14
Table: Terms of Office Rental Contract/Lease, Mid 2011.................................................................................................................................... 14
Supply and Demand ............................................................................................................................................................................................. 15
Industry Forecast Scenario .................................................................................................................................................................................. 15
Table: Forecast Office Rents, 2012 (AED per m2/month) .................................................................................................................................... 16
Table: Forecast Net Office Yields, 2008-2016 ..................................................................................................................................................... 16

Market Analysis Retail ................................................................................................................................ 17

Rents and Yields................................................................................................................................................................................................... 17
Table: Historic Retail Rents, 2010-2011 (US$ per m2/month) ............................................................................................................................. 17
Table: Net Retail Yields, 2011-2012 .................................................................................................................................................................... 17
Table: Terms of Retail Rental Contract/Lease, Mid 2011 .................................................................................................................................... 18
Supply and Demand ............................................................................................................................................................................................. 18
Industry Forecast Scenario .................................................................................................................................................................................. 20
Table: Forecast Retail Rents, 2012 (AED per m2/month) .................................................................................................................................... 20
Table: Forecast Net Retail Yields, 2008-2016 ..................................................................................................................................................... 20
Table: UAE Retail Sales Indicators, 2008-2016 .................................................................................................................................................. 21

Market Analysis Industrial .......................................................................................................................... 22

Rents and Yields................................................................................................................................................................................................... 22
Table: Table: Historic Industrial Rents, 2010-2011 (AED per m2/month) ........................................................................................................... 22
Table: Net Industrial Yields, 2011-2012 .............................................................................................................................................................. 22
Table: Terms of Industrial Rental Contract/Lease, Mid 2011 .............................................................................................................................. 22
Supply and Demand ............................................................................................................................................................................................. 23
Industry Forecast Scenario .................................................................................................................................................................................. 23
Table: Forecast Industrial Rents, 2012 (AED per m2/month) .............................................................................................................................. 23
Table: Forecast Net Industrial Yields, 2008-2016 ............................................................................................................................................... 24

Construction And Infrastructure Outlook .................................................................................................... 25

Table: UAE Construction And Infrastructure Industry Historical Data & Forecasts, 2007-2016 ....................................................................... 25
Table: UAE Construction And Infrastructure Industry Long-Term Forecasts, 2012-2021 .................................................................................. 26
Construction And Infrastructure Forecast Scenario ............................................................................................................................................ 27

Macroeconomic Outlook ............................................................................................................................... 30

Table: United Arab Emirates - Economic Activity, 2011-2016 ............................................................................................................................ 32

Real Estate Risk/Reward Ratings ................................................................................................................. 33

Business Monitor International Ltd

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United Arab Emirates Real Estate Report Q3 2012

Real Estate/Construction Risk/Reward Ratings ................................................................................................................................................... 33

Table: Middle East And North Africa Risk/Reward Ratings, Q312...................................................................................................................... 33
The UAEs Business Environment ....................................................................................................................................................................... 33
Table: BMI Business And Operation Risk Ratings ............................................................................................................................................... 34
Institutions ........................................................................................................................................................................................................... 34
Table: BMI Legal Framework Rating .................................................................................................................................................................. 35
Infrastructure ....................................................................................................................................................................................................... 36
Table: Labour Force Quality ............................................................................................................................................................................... 38
Market Orientation .............................................................................................................................................................................................. 38
Table: Middle East and Africa - Annual FDI Inflows, 2006-2008 ....................................................................................................................... 39
Table: Trade And Investment Ratings .................................................................................................................................................................. 42
Table: UAEs Top Export Destinations, 2002-2009 (US$mn) ............................................................................................................................. 43
Operational Risk .................................................................................................................................................................................................. 43

Competitive Landscape ................................................................................................................................. 45

Company Profiles ........................................................................................................................................... 49
Aldar Properties PJSC......................................................................................................................................................................................... 49
Al-Habtoor Leighton Group................................................................................................................................................................................. 51
Damac Properties ................................................................................................................................................................................................ 53
Deyaar Development ........................................................................................................................................................................................... 55
Dutco Balfour Beatty ........................................................................................................................................................................................... 56
Emaar .................................................................................................................................................................................................................. 58
Mubadala Development ....................................................................................................................................................................................... 60
Nakheel ................................................................................................................................................................................................................ 62
Sorouh ................................................................................................................................................................................................................. 64

BMI Methodology ........................................................................................................................................... 65

How We Generate Our Industry Forecasts .......................................................................................................................................................... 65
Construction Industry .......................................................................................................................................................................................... 66
Bank Lending ....................................................................................................................................................................................................... 67
Real Estate/Construction Business Environment Rating ...................................................................................................................................... 67
Table: Weighting Of Indicators ........................................................................................................................................................................... 68
Sources ................................................................................................................................................................................................................ 70

Business Monitor International Ltd

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