Dubai Property Newsletter

The Kingdom Holding Co. has announced its plans to complete the construction of the world’s tallest tower in Saudi Arabia in just over five years, the Associated Press has reported. The investment company headed by Saudi billionaire Prince Alwaleed bin Talal has not mentioned when work would begin on the Kingdom Tower. The $1.2bn tower will be roughly two-thirds of a mile (1 kilometer) high. It is part of a $20bn mega project on the outskirts of the Red Sea city of Jeddah.

The UAE’ biggest construction company by market value, Arabtec, has posted a 74% drop in second-quarter profit, Bloomberg has reported .The company’s net income declined to Dhs28.97m ($7.9m), or 2 fils a share, from Dhs111m, or 7 fils, a year earlier. The company added that its second-quarter expenses surged 91% to Dhs94m, while revenue dropped to Dhs1.22bn from Dhs1.28bn a year earlier.

The Sharjah Investment and Development Authority (Shurooq) has started the delivery phase of amenities at the Al Majaz Waterfront development, Khaleej Times has reported. The project offers open areas designated specifically for children, areas set aside for cultural and entertainment activities, a magnificent mosque with a modern architectural design, special areas for walking, jogging and cycling, a sculpture garden, an arts area for children, a dancing fountain, public amenities, parking for 1,000 vehicles, and sidewalks.

Although a large influx of new supply will continue to drive down rents and sale prices in Abu Dhabi’s residential market in the second half of this year, falling prices for accommodation will also help boost demand in the emirate and draw commuters back from Dubai, according to a new report by Jones Lang Lasalle.

The UAE Ministry of Finance figures have shown that Kuwaiti investors acquire nearly 60% of all properties purchased by GCC nationals in Dubai, Trade Arabia has reported. Dubai-based developer Damac Properties has also noticed an increase in inquiries from Gulf investors, particularly Kuwaiti nationals, over the past six months.

Figures released by STR Global have shown that the occupancy rate at hotels in the Lebanese capital Beirut has dropped 64.5% during the first half of the current year, the Daily Star has reported. Occupancy rates have been below last year’s throughout 2011. Ernst and Young’s benchmark survey of the Middle East hotel sector reported in May the average occupancy rate at hotels in Beirut was 50 percent in the first four months of 2011. However, occupancy rates for June saw a much less steep decline, at 4.5% year-on-year. Revenue per available room declined by 15.1% for the month, to $136.

Saudi Arabia’s National Committee for Haj and Umrah has said the number of Umrah performers is 25% to 30% higher this year, Saudi Gazette has reported. The Umrah season has “not been affected a lot” by the smaller number of Arab pilgrims, even though fewer pilgrims are coming from Yemen and Syria this year, and there are no pilgrims from Tunisia and Libya, chairman Sa’ad Jameel Al-Qurashi said. Numbers of Turkish pilgrims were the highest so far this year, with a total of 963,868 people applying to perform the rites, 329,313 of whom are new applications.

Jordan Development Zone Co is set to announce a 25-year master plan to outline investment opportunities in the Dead Sea area, Jordan Times has reported. As part of the plan, the company will develop the infrastructure, electricity and a desalination station at an estimated cost of JD180m. The development zone is to comprise 12 districts, with the corniche as main district, featuring restaurants, shopping malls, hotels and a beach plaza to host festivals. Other facilities to be constructed in the area include a sustainable golf course and public parks.

Dubai-based hospitality group Jumeirah is set to open a five-star hotel at Etihad Towers later this year, Emirates 24-7 has reported. Jumeirah at Etihad Towers is a five-star hotel with 382 rooms and suites, 199 serviced apartments, and an array of beauty, fashion and relaxation amenities including the Talise Spa. The five-tower Etihad Towers is scheduled to be handed over this year, according to the developer.

Egyptian property developer Talaat Moustafa Group (TMG) has denied reports that the company is expecting an EGP27.5bn backlog as a result of EGP5.5bn in new sales this year, Ahram has reported. “In reply to the Bourse’s enquiry about EGP27.5bn sales expectations for the Madinaty project for 2011 published in Al-Mal paper, we would like to inform you that our statement referred to the total backlog from the start of the project until the end of 2011,” the company said in a statement published on the Egyptian stock exchange’s website.