Dubai continued to stand alone as the preferred location for home buyers in the Gulf in 2009, despite its property market being hardest hit by the global downturn.

Dubai

More than 43 percent of respondents to the FutureBrand Gulf Real Estate Study, released on Tuesday, said Dubai was their number one choice in the region despite house prices slumping by up to 50 percent in some parts of the city during 2009.

The percentage rose from 36 percent in 2008 but its lead at the top of the list was reduced by its neighbour Abu Dhabi, the report showed.

The UAE capital more than doubled its appeal among home buyers looking to purchase a second or vacation home in the GCC countries.

Twenty-three percent of respondents picked Abu Dhabi as their preferred location in 2009, compared to just 11.5 percent the previous year.

The report said it saw Abu Dhabi as having the potential to take over from Dubai as the top property location in the long run.

“With its financial strength and its rise as a destination of note, Abu Dhabi is best placed to lead the region’s real estate recovery,” the report said.

“It is also poised to be the first place in the region to attract foreign investment and partnership opportunities in the future, should the emirate seek these,” it added.

But Jae Hwang, executive director at FutureBrand said Dubai still had a lot going for it and that it was premature to announce the death of its real estate industry.

“There is definitely a truth in the matter that the business model for real estate in Dubai needs to be reevaluated and I believe companies are starting to do that…our study shows that it’s still the most popular place to live.”

He said mega projects like the Burj Khalifa and Dubai Metro becoming a reality added to the city’s appeal to would-be home buyers.

Elsewhere in the Gulf, Doha was the third most popular city – chosen by just over 11 percent of respondents – while Jeddah (9.2 percent) and Muscat (5.9 percent) completed the top five destinations.

All top five locations increased their appeal in 2009 but Sharjah and Ras al Khaimah saw big falls last year compared to 2008.

Sharjah dropped from being the most popular location with 9.9 percent of buyers in 2008 to just 0.4 percent last year while RAK fell from 6.8 percent to 0.8 percent.

Riyadh, Manama, Kuwait City and Fujairah also lost appeal among home buyers, FutureBrand’s report said.

The Dubai Roads & Transport Authority (RTA) has won two awards of the biannual Gulf Traffic Conference & Exhibition 2009 in recognition of its competence in the fields of safety, transport and infrastructure in the Middle East.

Traffic Department at RTA Traffic & Roads Agency won Road Safety Award (Infrastructure Projects), while Rail Agency won Transport Project of the Year Award (Public Transport).

H.E. Mattar Al Tayer, Chairman of the Board and Executive Director of the RTA hailed the efforts of RTA engineers and employees who contributed to the award-winning projects and stressed that RTA projects & business are aligned on international specifications of high quality standards; which qualify them to clinch several international awards.

“Winning such awards brings in fresh responsibilities to our standing commitment of living up to the international standards in the projects and programs undertaken. Moreover, it leverages RTA staff to be creative and innovative in order to remain competitive at the top and have an edge to introduce creative concepts & methods in transport, traffic and roads sectors across the globe” commented Al Tayer.

“The Emirate of Dubai has undergone a quality transition in developing mass transit systems which have been recently culminated in the opening Phase I of Dubai Metro Project; the longest automated driverless metro project implemented in a single project worldwide. The overall length of the project is 75 km; 52 km on the Red Line and 23 km on the Green Line, both lines have 47 stations.

“Dubai Metro uses state-of-the-art rail technology featuring an air-conditioning system inside the stations and trains customized to function under the climatic conditions of metropolitan Dubai.

 All trains operate according to an integrated electronic system enabling enhanced control and accurate setting of journey timings. The metro stations have been designed in an innovative architectural stylish method and fitted with the latest safety & security technologies, while providing parking facilities for private vehicles and public transport modes in each station.

“Having Traffic & Roads Agency winning Road Safety Award underscores the efforts made by Traffic Dep’t in carrying out of programs & plans that contributed to effectively improving traffic safety level of roads in the Emirate, according to indicators and statistics contained in the bidding file of the Award.

“Traffic Safety Section at Traffic Department compiles, audits, streamlines and saves traffic accidents data in the GIS in order to further study and identify their indicators in a way that guides us in drawing up plans and business of traffic safety in Dubai. Traffic safety strategy of Dubai Emirate 2015 includes 25 initiatives to improve the traffic safety in the Emirate. Traffic Safety Section has recently completed several projects & programs related to road safety such as Auditing Road Traffic Safety Manual, Traffic Diversions Manual, Roadsides Designing Manual, Safety & Pedestrian Security Plan, Identifying the Locations of Footbridges and Pedestrian Crossings, Identifying the Locations of Black Points System, Upgrading the Standards of Roads Infrastructure Safety, and Reviewing Traffic Rules and Benchmarking them to the Best International Practices of the Industry” added RTA Chairman.

Al Tayer concluded by reiterating RTA attention to reduce traffic accident rates through focusing on safety & awareness aspects in well-rehearsed and guided approach to realize RTA vision of providing Safe & Smooth Transport for All.

For her part Sarah Woodbridge, Group Director – Exhibitions at The Institute for International Research (IIR), the organizer of Gulf Traffic said: “We feel it is necessary to reward the pioneers and innovators at public and private entities operating in the fields of transport and infrastructure across the Middle East”.

She added: Gulf Traffic Conference & Exhibition is held biannually featuring participation from public & private organizations at various countries.

It is the first time the organizers decide on offering awards for the best practices and applications in the fields of traffic, roads & safety. The awards comprise three segments: transport innovation, road safety and public transport project of the year.  The Awards comprise 8 categories and the Dubai RTA won both the second and third categories. The Director of Traffic Department at Traffic & Roads Agency Hussain Al Banna collected Roads Safety Award, while the Director of Rail Planning & Designing Dep’t at Rail Agency Abdul Rida Abu Al Hassan received the Project of the Year Award – Public Transport in a ceremony held at Dubai Aviation Club attended by all participants.

Judges Panel comprises Dr. Reem Ahmed Akbari at Centre for Transport and Road Studies, University of Bahrain, Tony Pearce, Honorary Director General, International Road Federation, and Dr. Paul Carlson, Division Head of Operations & Design, Texas Transportation Institute.

The Dubai Roads & Transport Authority has landed the Gulf Engineering Union’s Excellence & Innovation Award for the Dubai Metro Project, the longest automated metro project undertaken as a single unit in the world.

The Award was presented during the 13th Gulf Engineering Forum held recently in Kuwait under the patronage of the Kuwaiti Prime Minister HH Sheikh Nasir Al Mohammad Al Sabbah under the theme: “Transport & Traffic Issues: Opportunities & Aspirations”.

The UAE was selected to host the 14th edition of the Forum (2010), which will be held in the emirate of Dubai under the theme: “Intelligent Systems in transport and mobility modes”.

The Award was received on behalf of RTA Chairman & Executive Director, Chairman of UAE Engineers Society, H.E. Mattar Al Tayer, by the CEO of RTA Rail Agency Abdul Majeed Al Khaja. The Gulf Engineering Union’s Excellence & Innovation Award revolves around two basic concepts; promoting GCC joint engineering work to meet the objectives of the Gulf engineering forums on the one side, and honing the spirits of competitiveness, creativity and excellence in the various fields of engineering activities on the other.

Commenting on landing this prestigious Award H.E. Mattar Al Tayer said: “It is thrilling to add another achievement to the record of the RTA which boasts an array of vital and vital projects and strategic projects that cement the profile of the UAE in general and the emirate of Dubai in particular at the local and regional level. The Award is in fact an incentive for all of us to redouble our efforts and set our sight to achieving the best from our ongoing projects.

“Dubai Metro, which is an inspiration of HH Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, marks the intention of His Highness to provide integrated roads & transport infrastructure.

 “More than 30,000 engineers and workers hailing from 5 main contractors and 150 subcontractors have worked in this enormous project. It comprises two lines; the Red and Green. The Red Line extends 52 km and covers 29 stations (4 underground stations: Khalid bin Al Waleed, Al Ittihad, Riggah and Port Saeed, and 25 elevated stations, including two stations at Dubai International Airport). The Green line extends about 22 km over 18 stations (including 6 underground stations) and runs 10 km in an underground track” said Al Tayer.

In constructing Dubai Metro, RTA used the latest technology in rail industry and the stations have been designed in an innovative architectural style that forms an excellent and unique blend between modernity and the authenticity, reflecting the four elements of nature; water, air, fire and earth, besides the heritage design of Al Ras & Al Ghubaiba Stations.

More than 30,000 engineers and workers hailing from 5 main contractors and 150 subcontractors have worked in this enormous project, and sophisticated methods have been used in constructing the metro viaducts using 10 gantry cranes, and 3 tunnel boring machines.

Al Tayer continued: “RTA has managed to overcome a host of challenges during the construction of Dubai Metro at the top of which comes the delivering of the project on time (about four years) considered a record period, as the completion of such projects usually takes 3 times this period. Building the world’s longest driverless Metro system to be constructed in a single project was also another challenge and so was the recording of an average accident rate below the international rate with one injury per one million working hours.

Challenges list also includes providing the highest level of architectural finishes in the trains, stations and annexes, achieving full integration with other modes of transportation such as buses, taxis and water transport, building the largest underground metro station in the world at Union square with a total area of 220,000 square feet, using state-of-the-art technology in the rail industry, providing every comfort and entertainment packages to passengers, and operating the Metro system transporting passengers from 200 nationalities and backgrounds”.

For his part Abdul Majeed Al Khaja, CEO of Rail Agency said: “Winning this Award would not have been made without the wise directives and ongoing support of H.E. Mattar Al Tayer, Chairman of the Board and Executive Director of the RTA, as well as the tireless efforts of RTA field teams engaged in this project which plays a crucial role in driving transportation multi-modal integration and raises the ridership of public transport modes”.

The Award event was attended by Dr. Khaleel Al Hosani, Vice-Chairman of the UAE Engineers Society, Adnan Al Hamadi, Director of Rail Construction Projects Dep’t at RTA Rail Agency, and Abdullah Yousef Al Ali, Director of Bus Dep’t at RTA Public Transport Agency.

Abu Dhabi: Structuring and finance procurement are the main challenges facing Gulf rail projects, industry heads concluded at the first session of a regional rail conference held on Monday.

In order to speed implementation of planned rail projects in the Gulf Cooperation Council (GCC), including a $20-$25 billion (Dh74-Dh92 billion) track linking all six member states, governments are being forced to assume more of the risk and use public funds to finance these projects.

Countries that have tried to use a full public-private-partnership model, such as Saudi Arabia, have had to assume more control of their projects because of the lack of historical transportation data which would be used by lenders to assess risk.

Reliable data

“If you want to do it correctly, you have to have reliable historical data on traffic patterns, people and cargo movement,” Frank Beckers, head of the Middle East, Africa and Asia Project and Capital Advisory unit at Deutsche Bank, said during a panel discussion at MEED’s Middle East Rail Projects 2009 conference.

“If you don’t have those numbers, it’s very much like looking into a crystal ball because you have to predict how much is going to be taken away from other transportation modes,” he added.

Sufficient funds

But a project structure in which a government regulator assumes more of the risk may not necessarily be a bad option for GCC countries as their governments hold sufficient funds to see their projects to profitability in the long term.

Joss Dare, a partner at Ashurst, a legal consultancy which served as an adviser on the Dubai Metro project, said more government control of rail projects means speedy implementation and avoidance of conflicts that may result from conflicts of interest between the designing, construction and operation and maintenance companies.

“One of the challenges is making sure you’re continuing the build process in a safe and timely manor,” Dare said of the ongoing construction of Dubai Metro’s Red and Green lines.

“And it’s a challenge I think [the Dubai government] is meeting very well.”

GCC countries have announced rail projects worth more than $100 billion including high speed train lines and light and heavy city metro systems.

Abu Dhabi: The Gulf Cooperation Council (GCC) countries’ proactive approach to building railroad networks, whose estimated cost is more than $60 billion (Dh220 billion), will help boost cross-border trade, cut freight costs and result in faster movement of cargo and passengers, experts have said.

Dubai Metro seems to be a precursor to GCC-wide railway developments. The long-awaited Gulf network is expected to start in 2010 or 2011. Image Credit: Gulf News

“Rail is safer, faster, cleaner and [a] more economical mode of transportation. Strong logistics networks encourage trade and provide industry with a competitive advantage,” Hussain Al Nowais, chairman of the UAE’s newly created Union Railway Company, told delegates at a rail conference organised by Meed.

Construction of the long-awaited rail network that will link the six members of the GCC is expected to start in 2010 or 2011. The cost will be shared among the six Gulf states — Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE.

In the UAE, the Union Railway Company has estimated it will cost up to Dh30 billion to build a countrywide network of railways by 2016, with a track length of almost 1,400km.

In Dubai, the cost of building the Metro stood at Dh28 billion for the two lines.

If everything proceeds smoothly, the GCC railway network, stretching 2,000km from the Kuwait-Iraq border to Oman, will come online in 2017.

Strategic location

Union Railway leverages the strategic location of the UAE. It aims to connect the UAE to Oman and Saudi Arabia — connecting to Sohar in Oman through Al Ain, and connecting to Fujairah in the Eastern region.

It will offer two routes that provide alternative access to the Indian Ocean. The railway will also connect to Saudi Arabia through the Guweifat border and greater GCC and Mena regions.

Union Railway expects to transport 30 million tonnes of bulk and break bulk by 2015. At present, rail transport in Saudi Arabia is managed by the Saudi Railway Organisation, which provides freight services on three main lines totalling 1,018km. There are plans to extend the network to the Red Sea port of Jeddah and eventually, to the borders of Jordan, Yemen, and perhaps all the way to Egypt.

Alstom: Dubai Tram contract

French engineer Alstom said it is in talks for a five-year contract to maintain a 550 million euro (Dh2.9 billion) tram system in Dubai. It added that it is close to signing a high-speed rail project deal in Morocco.

Marc Chagnas, vice president of business development for transport in south Europe, said Alstom was also chasing a tender for a multi-billion dollar high speed rail linking Jeddah with Makkah and Madinah in Saudi Arabia.

—Reuters

If you look out the carriage window to your right, this train will be passing the majestic Arabian desert and to your left the water of the Gulf.

A main source of inspiration for the proposed regional rail network is the Dubai Metro, which was inaugurated last month

It could be true by 2017 when the new proposed regional rail network is scheduled to connect all six countries that make up the Gulf Co-operation Council (GCC) – Kuwait, Qatar, Bahrain, Saudi Arabia, Oman and the United Arab Emirates (UAE).

When the idea was first presented the estimated cost was $14bn but that sum has since risen to $25bn due to changing technical specifications, an issue at the heart of negotiations among regional heads.

 “I think this in an interesting concept but it needs a central structure that will follow up on the development and work on finding solutions,” Jean-Pierre Loubinoux, general director of the International Union of Railways, told The Media Line.      

Its economic feasibility, on the other hand, was something that still needed to be evaluated, he said.

One of the main sources of inspirations for the network is the Dubai Metro, inaugurated on September 9. Despite the fact that not all the lines have been completed yet, the metro or light railway, is being used by thousands of residents, and being considered a huge success. The trains, which are fully automated and driverless, are expected to carry 1.2mn passengers a day upon completion.

The rail project is just one of a number of projects that the six countries are working on to increase their co-operation.

 “There is an apparent will to come towards more economic integration and this would be translated by actual infrastructural common work, of which the rail network is one example,” Philippe Dauba-Pantanacce, senior economist with Standard Chartered Bank in Dubai told The Media Line.

 “There are still a lot of questions pertaining to the actual need of such a network. It’s a great idea in terms of concept but at the same time we know from history that rail networks function best in high-density areas. Something which is not the case here in the region,” he said. 

 “We see some signs of converging economic activity and one of the best examples is the electricity grid which was connected over the summer,” he said.

Despite Saudi Arabia having the world’s largest known oil reserves as well as being the number one oil producer in the world, and despite both Qatar and Bahrain being home to vast natural gas resources, electricity is still a scarce commodity. As a shared problem, electricity production serves well as a point of co-operation.

According to some estimations, the need for electricity is expected to increase between 5% to 7% annually. 

In order to deal with this problem the nations completed the first stage in June 2009 of what will become a regional power grid. The grid, which is due for completion in 2015, is expected to cost $49bn.

Another sign of increasing co-operation can be seen in the plans for a common currency and a de-pegging from the dollar.

While the Gulf countries experienced tremendous economic growth and development following the discovery of oil in the region in the 1950s, their currencies have remained insignificant in the international market.

In addition to the Gulf’s currencies being pegged to the US dollar, oil is traded in it, which has forced the regional central banks to keep their currencies on a par with the dollar. This has meant that their currency has been limited by the strength of the American economy rather than their own.

While plans for de-pegging are strong in Saudi Arabia, Qatar and Kuwait, support for it across the whole region is only partial, with the UAE having pulled out in May 2009 and Oman back in 2004.

Another joint infrastructural project is the Dolphin gas pipeline, which starts in Qatar and goes to Oman via the UAE. Because natural gas is considered to represent a diversification of the national economies away from oil, the pipeline is seen as a crucial development.

 “Another major topic that I would say is very important is the better integration of statistical tools, this is crucial if you are thinking about more economic integration,” Dauba-Pantanacce said.

“If one day you want to move towards a homogenous market it is imperative to have comparative statistical tools. The latest one to have been announced was one on inflation,” he concluded.

The estimated cost of the Gulf rail network has rocketed from the initial $14 billion (Dh51.4bn) to between $20bn and $25bn, a senior official has revealed.

The increase is the result of improvements to the specifications ordered by the rulers of the GCC member-states, said Mohammed Obaid Al Mazrouie, the organisation’s Assistant Secretary-General for Economic Affairs. He added: “The GCC leaders demand very high standards.”

The project will link the six GCC countries.

Al Mazrouie said the costs that will be shared by each state had been calculated, and Saudi Arabia and the UAE would pay the most because the largest parts of the network would be built on their territory.

A major study into the project has just been launched by the member states. “An international partnership has been asked to compile the study and work on it began a few days ago,” Al Mazrouie said, while speaking on the sidelines of the 33rd meeting of the Council of Governors of Arab Central Banks and Monetary Agencies.

Al Mazrouie said a technical committee had recently been formed to prepare for the construction of the railway. If the project proceeded the trains should start running in 2017.

Al Mazrouie highlighted the importance of member-states setting up local train services to boost the benefits of the GCC network.

Local train specifications should be compatible with those of the Gulf service.

He said the Dubai Metro was a major driving force behind the moves to establish a Gulf network.

“The Metro is a project that encourages the idea of the use of trains in GCC member-states. We believe the Gulf countries will benefit greatly from the example of the Metro as they set up similar projects.”

Dubai on Wednesday opened its first metro system and largest infrastructure project in over a decade.

The $7.6 billion Dubai Metro, when running at full capacity, will be the world’s longest driverless train system with over 70 km (43 miles) of track. In Dubai style, the metro also boasts a VIP gold-class section.

Sheikh Mohammed bin Rashid Al Maktoum, Dubai’s ruler, called the metro a vital component to the nation’s infrastructure. “It’s the start of something,” he told reporters before the operation’s launch. “It is like when the first plane flew for Emirates (airline) and the first container ship arrived into port.”

There are over one million automobiles registered in Dubai, amounting to a car for every two residents. This has lead to unbearable bumper-to-bumper traffic in the growing city.

“Dubai Metro aims to ease traffic congestion and reduce traveling time, which in effect will reduce air pollution caused by cars and improve air quality,” the Roads and Transport Authority (RTA) said in a statement.

While the opening date was meant to imply symbolism—09/09/09—Wednesday’s opening seemed rushed. As of now, only 10 of 29 stations are functioning. Some stations won’t open until as late as June. The project, moreover, is nearly 80 percent over budget.

Nevertheless, the new metro is among the most technologically advanced in the world. It is entirely driverless and controlled by remote controls. A screen barrier between passengers and the track keeps the stations air conditioned, while Internet is anticipated in the future.

In line with cultural considerations, each five-car train has separate compartments for women and children.

A ride on the new metro will cost 1.8 dirhams, or about 50 U.S. cents, while the gold-class trip will cost 13 dirhams, or $3.55, each way. RTA anticipates 200 million passenger trips annually.

© 2009 Mena Report (www.menareport.com)