World’s tallest hotel opens in Dubai

January 8th, 2010

The Rose Rayhaan can be seen poking above the high-rise buildings on The Strip on Sheikh Zayed Road. Photograph: Peter Harrison/Maktoob

The Rose Rayhaan can be seen poking above the high-rise buildings on "The Strip" on Sheikh Zayed Road. Photograph: Peter Harrison/Maktoob

DUBAI - The world’s tallest hotel opened in Dubai on Wednesday with cut-price room rates and an occupancy level of just 25 percent, a sign of the downturn that still grips the emirate’s hospitality market.

The 333-metre Rose Rayhaan, located on “the Strip” on Sheikh Zayed Road, overtakes the 321-metre Burj Al Arab as the world’s tallest building used solely as a hotel, a title the sail-shaped Dubai icon held for over a decade.

Operator Rotana Hotels opted for a low-key inauguration for the $180 million Rose Rayhaan in comparison to the celebrations that accompanied the opening of the Burj Khalifa, the world’s tallest building, two days earlier.

“I don’t think there is ever a wrong timing to open a hotel in Dubai. If you have a strategy and wide network of hotels and a large sales team, you can do well,” Omer Kaddouri, senior VP for UAE operations, said at a media briefing to launch the hotel.

Kaddouri said he expects occupancy to pick up as Rotana steps up marketing for the hotel, which operates under the hotelier’s alcohol-free brand Rayhaan Hotels & Resorts.

Rotana in November forecast occupancy levels of no less than 80 percent at the Rose Rayhaan.

The hotelier’s expectations are a far cry from current hotel occupancy levels in the UAE, which has been hit hard by the global recession as fewer tourists visit the Gulf state.

UAE hotels saw revenue per available room (RevPar), a key measure of hotel performance, slump 28.3 percent to 766 dirhams ($208) in November, while room occupancy declined 8.8 percent to 75.5 percent, STR Global figures show.

Rotana is offering rooms at the Rose Rayhaan starting from 400 dirhams a night.

Analysts forecast hotel revenues and occupancy levels will continue to come under pressure in 2010 as more hotels currently under construction come online.

There are currently 28,153 rooms under construction in the UAE with a further 51,594 rooms in the pipeline, according to STR Global.

Kaddouri forecast room rates will drop further this year as more hotels are finished, adding to the existing room supply of around 60,000.

“The increase in the number of hotels that is coming up, the hunger that every hotel has to get (a decent) occupancy rate is just driving everybody down,” he said.

“Ultimately we will see rates come down further … we are now starting to see realistic rates in Dubai.”

The Rose Rayhaan opens is a four-star hotel, but Kaddouri said there are plans to upgrade the hotel to five-star by the beginning of next year.

Kaddouri said the Rose Rayhaan is the 11th hotel that Rotana operates in the UAE.

He said Rotana is pushing ahead with expansion despite the industry downturn and plans to expand its portfolio to 100 hotels by 2015 and be present in every major city in the Middle East and North Africa (MENA).

Rotana currently operates 70 hotels across the MENA region

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828-metre Burj Dubai renamed Burj Khalifa

January 7th, 2010
Fireworks light up the newly-renamed Burj Khalifa during the opening ceremony. Photograph: Peter Harrison/Maktoob

Fireworks light up the newly-renamed Burj Khalifa during the opening ceremony. Photograph: Peter Harrison/Maktoob

DUBAI - Dubai’s ruler on Monday evening officially inaugurated the world’s tallest building, but in a shock move the 828-metre tower was unveiled as Burj Khalifa Bin Zayed instead of Burj Dubai.

Sheikh Mohammed bin Rashid al-Maktoum at around 8 p.m. drew the curtain on the tower’s plaque to reveal the name Burj Khalifa Bin Zayed engraved on it.

“I now officially announce the opening of the Burj Khalifa Bin Zayed,” the ruler said at the opening ceremony.

One political observer described the name-change as “a surprise”.

The inauguration kicked off a night of festivities as the emirate celebrated the completion of the world’s tallest building, the fourth anniversary of Sheikh Mohammed’s rule and looked to put its well-publicised financial troubles behind it.

But as the much-anticipated fireworks, lights and music display began with the tower’s final height - a secret until the inauguration - flashing on a giant screen, observers were left pondering the significance of the tower’s new name, a tribute to UAE President Sheikh Khalifa bin Zayed al-Nahyan.

“This is a surprise move, but maybe this is an attempt to boost confidence in Dubai by showing who is backing Dubai,” a diplomat at the ceremony told Maktoob News.

INVESTOR CONFIDENCE

Confidence in Dubai has been severely damaged in recent months after one of the emirate’s largest state-owned conglomerates said it needed more time to repay its debts, confirming investors’ worst fears about Dubai’s debt problems.

Dubai racked up debts of as much as $150 billion fuelling its economic growth during the boom years and the onset of the global financial crisis made it increasingly difficult for the government and its related entities to meet repayments.

Dubai World in late November said it would request a standstill on repayment of $26 billion worth of debt, sending global markets into a tailspin after months of positive talks from Dubai officials that the emirate’s debt problems were in hand.

Abu Dhabi stepped in with a $10 billion bailout at the eleventh hour - part of $25 billion in emergency funding provided to Dubai in the last year - but the lack of unequivocal backing from its oil-rich neighbour has left a cloud of uncertainty over Dubai.

The inauguration of the $1.5 billion Burj Dubai was meant to help restore investor confidence, but the name change has instead reignited speculation over the extent of Abu Dhabi’s support and what Dubai has had to concede to secure that backing.

“If Dubai has nothing left to sell then at least it still has naming rights,” Christopher Davidson, a professor at Durham University and author of several books on Dubai, told Maktoob News.

But Davidson said “there is still no certainty behind Abu Dhabi’s backing” of Dubai despite the name-change.

“SYMBOLIC”

Despite Dubai’s financial woes, organisers pulled out all the stops for Monday nights display of fireworks, lights and music that many in attendance described as one of the most impressive they had ever seen.

Dubai intended to send a clear message to the world that the emirate is still an economic force.

“This is yet another proof that our national economy is robust and that our leadership, institutions and private sector are capable of surmounting difficulties and confronting challenges with resolution, fearlessness and confidence,” Sheikh Mohammed said after the ceremony in remarks carried by state news agency WAM.

Analysts described the inauguration as “symbolic” for Dubai, but unlikely to have any material impact on the emirate’s economy or its real estate market.

“From a debt point of view and an economic crisis point of view, nothing changes … The underlying weaknesses of the (real estate) market are still there,” Mohammed Shakeel, UAE economist for the Economist Intelligence Unit, told Maktoob News.

Dubai’s real estate market, a major driver of the emirate’s economy, collapsed in 2009 after years of meteoric speculation-fuelled growth in the wake of the global financial crisis.

Property prices more than halved, billions of dollars worth of projects were scrapped and thousands of expatriates lost their jobs and returned home.

Issam Galadari, CEO of Burj Khalifa developer Emaar Properties, said on Monday the tower will have a positive impact on Dubai’s real estate market, which he said is stabilising.

Analysts are not so optimistic and see further price falls are expected in 2010 as more supply left over from boom-time construction comes online. Already one in four homes and a quarter of office space are empty, according to analysts.

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Burj Dubai renaming fleeting reprieve for realty

January 7th, 2010
Dubai’s Burj Khalifa, the worlds tallest tower. Photograph: AFP

Dubai’s Burj Khalifa, the world's tallest tower. Photograph: AFP

DUBAI - The shock, last minute rebranding of Burj Dubai, aimed at reinforcing Abu Dhabi’s backing of Dubai, may only provide fleeting reprieve to sagging confidence in Dubai’s real estate market, analysts said on Tuesday.

“There is going to be a positive perception impact in the short-term, beyond that I do not think it (the renaming) is a big deal,” said Saud Masud, head of research at Swiss bank UBS in Dubai.

Dubai’s ruler Sheikh Mohammed bin Rashid al-Maktoum on Monday evening inaugurated the world’s tallest building, unveiling its plaque to reveal the name Burj Khalifa in honour of UAE President Sheikh Khalifa bin Zayed al-Nahyan.

The name-change is being seen as part of attempts to portray a more unified UAE as well as boost confidence in Dubai after a real estate crash and debt crisis that have brought the emirate’s economic credentials into question.

Dubai’s real estate market, once the envy of the world, came crashing down to earth last year in the wake of the global financial crisis, with property prices tumbling by more than half and billions of dollars worth of projects axed.

Residential sale prices in the Burj Khalifa have also been hit by the crash, currently standing at around 4,100 dirhams per square foot compared to as much as 10,000 dirhams at the peak of Dubai’s real estate boom, according to brokers.

Brokers said prices have already begun to rebound following the launch of the rebranded 828-metre tower, but projected prices would soon level off when the initial euphoria dies down and the reality of market fundamentals sink in.

“People who wanted to sell are already asking for more money,” said Iseeb Rehman, managing director of property consulting firm Sherwoods.

“After the initial excitement, the prices will level off. They have to level off.”

Dubai is facing a massive property oversupply, a hangover from boom-time construction, and the Burj Khalifa will add another 1,044 residential apartments and 49 floors of office space into the market.

Already one in four homes and a quarter of office space in Dubai are empty, according to analysts.

“The name of the building itself purely from a real estate fundamental perspective makes really no difference,” said Chet Riley, an analyst with Nomura Securities in Dubai.

“I don’t think there will be any sort of real material change (in the real estate market).”

Emaar Properties, developer of the Burj Khalifa, has said the tower will give a much-needed confidence boost to the market and is forecasting the opening to positively impact profit in 2010.

Emaar has said 90 percent of the tower is sold and that it will hand the keys over to the first residents in February, with the entire handover programme expected to take up to six months.

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Dubai is out, Croatia is in for celeb travel

December 5th, 2009

Jennifer Aniston was all smiles during a recent trip to Marrakesh, Morocco.

Jennifer Aniston was all smiles during a recent trip to Marrakesh, Morocco.

(The Frisky) — With over-the-top resorts, year-round sunshine, killer shopping, picturesque beaches, and the world’s tallest building, Dubai quickly became the celebrity destination of choice.

Not only were the Beckhams and Jolie-Pitts falling all over themselves to jet-set to the Persian Gulf, many were even investing in real estate there.

Well, until the government went public with their $80 million worth of financial woes.

Now that Dubai is donezo, where will the celebrities go to hide away from the unwashed masses? Morocco.

Just this past weekend, a bunch of A-listers jetted to Marrakesh to celebrate the opening of a Chopard boutique at the La Mamounia Hotel. Jennifer Aniston, Gwyneth Paltrow, Orlando Bloom, Salma Hayek, Miranda Kerr and Juliette Binoche were just a few of the guests in attendance. Could this signify a renaissance of the ’60s bohemian hot spot? [Celebitchy]

Here are some “now” destinations where celebrities will be heading in 2010.

Croatia: The civil war is long over and celebs are rediscovering what tourists knew in the 1980s. Croatia — on the Adriatic arm of the Mediterranean — rivals other European seaside areas with beaches, sailing, and superb cuisine that’s attracted superstars like Steven Spielberg, Andre Agassi, Gwyneth Paltrow, Robert De Niro, Clint Eastwood, and Sharon Stone.

Turks and Caicos: Funny name, amazing islands. Since the opening of a handful of luxury resorts in the ’90s, this British West Indies 40-island archipelago has been working hard to make tourists forget about its shady past as a drug-smuggling hotbed. The exquisite beaches have called to Donna Karan, Barbra Streisand and Britney Spears.

The Frisky: Suri Cruise plays dress-up and people freak out!

South Africa: With the World Cup in Cape Town fast approaching, tourists are running to score a vacation here. Just ask Oprah, Beyonce, and Kim Kardashian.

Bora Bora: One of the 118 islands that make up French Polynesia, Bora Bora is making celebs skip Tahiti because of its coral gardens and lavish spas. “Couples Retreat” was filmed there if you need a visual. Janet Jackson, Pierce Brosnan, Drew Barrymore and Cameron Diaz can’t all be wrong.

The Frisky: 10 celebs go unrecognized. Would you know who they are?

Kenya: Perfect weather, top-of-the-line accommodations, and scarcity of local media make this African country the perfect place to hide out. Bill Gates, Naomi Campbell, Serena and Venus Williams, and Oprah have all slipped under the radar here.

Whistler, British Columbia: Sure, we know celebs are oot and aboot every winter in Aspen, but this year folks like Sandra Bullock and Harrison Ford may be taking their expensive skis and snowboards to Whistler, BC. Oh yeah … and the 2010 Winter Olympics will be there as well.

TM & © 2009 TMV, Inc. | All Rights Reserved

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Military assault on Dubai Airshow

November 12th, 2009

DUBAI – Military aircraft manufacturers from across the world will be homing in on Dubai next week looking for deals from wealthy Gulf states, while regional airlines will be gunning for plane makers Boeing and Airbus as continued delivery delays curtail expansion plans.

The exhibitor list for the Dubai Airshow, which runs Nov. 15-19, reads like a who’s who of global defence contractors, none of which want to miss out increasing spending on weaponry in the volatile region.

Middle East spending on military kit is expected to surpass $100 billion by 2014, led by Saudi Arabia and the UAE, according to consultancy Frost & Sullivan, at a time when the United States and European countries are cutting defence budgets.

“Major defence companies are facing lower spending in the U.S. and Europe, but shareholders are still demanding growth so arms makers are turning to emerging markets for business,” said Guy Anderson, lead analyst of Jane’s Defence Industry.

The likes of BAE Systems, Lockheed Martin, Northrop Grumman, Raytheon and Dassault Aviation will be showing off their latest airborne killing machines as Saudi warplanes continue to pummel Shi’ite rebels inside Yemen and the ever-present threat from Iran looms large.

At an exhibition traditionally dominated by large commercial aircraft orders, the fighter jet looks set to win the battle of the skies above Dubai’s Airport Expo Centre this year.

“Threats including those from Iran or the instability surrounding Afghanistan and Pakistan, Iraq, and most recently Yemen certainly add to the need of Gulf states to review their defence policy,” said Christian Koch, director of international studies at the Dubai-based Gulf Research Center.

MILITARY MIGHT

Military participation this year at the Dubai Airshow will grow to 40 percent and organisers expect military orders to compensate for a drop in orders from commercial airlines, which have already announced huge fleet expansion plans and are struggling to keep up with their targets in the face of the global recession.

“There are a large number of military contracts from the Middle East that will be announced,” said Alison Weller, aerospace director at Fairs and Exhibitions (F&E), without giving further details.

Saudi Arabia is currently in talks over an agreement to purchase military transport helicopters from Russia and more Eurofighter Typhoon jets, while the UAE is in negotiations with French and Italian defence contractors to buy around 100 fighter jets.

Saudi Arabia is BAE Systems’ biggest customer for the Eurofighter outside Europe. It has 72 jets on order in a deal worth almost $10 billion.

“It seems that the Gulf region has been increasing its defence spending in recent years,” said Simon Keith, BAE’s managing director for the Middle East, Africa and Asia Pacific region.

As much as defence contractors are looking forward to the Dubai Airshow, commercial aircraft manufacturers will be viewing the exhibition with trepidation as delivery delays lengthen.

Boeing and Airbus could be in for an uncomfortable few days at the Dubai Airshow, surrounded by a gang of unhappy airline executives with the latest precision military weaponry just a few stands away.

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Last Burj Dubai crane comes down

November 12th, 2009

Burj Dubai, the world’s tallest building, which is being developed by Emaar Properties PJSC, is nearing completion, following the dismantling of the last high-altitude crane used in the tower’s construction.

Having also completed the external cladding recently, the Burj Dubai construction team is now concentrating on the interiors and landscaping.

Mr. Mohamed Alabbar, chairman, Emaar Properties PJSC, said: “Working at great heights involving the use of massive cranes has been one aspect of the challenge. Dismantling the cranes is an exciting development because it shows that completion of the world’s tallest tower is just around the corner.”

Three huge tower cranes were used in moving construction materials up to level 156 of Burj Dubai. The cranes could each lift a staggering 25-tonne load and were designed to withstand 120km/hour winds.

Installation of the three tower cranes used for the construction of the higher levels of Burj Dubai was relatively straightforward, as sections of the cranes could be moved up the tower with the completion of new levels.

But as the tower grew in height, the floor plates and working area became smaller and smaller, providing insufficient room to fit the three cranes at the top of construction.

Dismantling the towers was considerably more complex than installing them. The first crane was removed in November 2007 and installed at Level 99 in order to serve as a future recovery crane.

For the next 11 months, the two remaining cranes continued their climb up the tower until October 2008 when one of them was removed due to the small size of the tower’s floor-plate. This left one final crane to continue with the rest of the exterior work.

In June 2009, the final crane had to be removed in order to allow the exterior cladding and finishing works to progress in the area it occupied. This longest serving crane had been in operation since the start of construction in March of 2005.

A small recovery crane was lifted up and installed at Level 159. With recovery cranes now positioned at Levels 99 and 159, the task of removing the last crane was ready to begin.

The process started with the crane climbing down from its working height of over 700 metres. The crane removed its own mast sections and lowered them to the ground until the boom and power pack were at the position of the level 159 recovery crane.

From there, the level 159 recovery crane dismantled the remainder of the main crane, lowering the pieces of boom, mast and power pack to the recovery crane at Level 99, which further lowered them to the ground.

Final work on interiors and landscaping is underway as the Burj Dubai prepares to open on January 4, 2010.

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Dubai plans 2020 Olympic bid

November 4th, 2009

DUBAI - Dubai officials headed by the Crown Prince, Sheik Hamdan bin Mohammed Al Maktoum, will meet Monday to discuss the emirate’s bid to host the 2020 Olympic games.

The emirate is working on a plan to host the games, the world’s largest sporting event, including the required infrastructure, according to a statement from the ruler’s office.

The committee includes Dubai’s most senior officials such the Mohammed Al Shaibani, head of the ruler’s court and Dhahi Khalfan Al Tamim, Dubai’s chief of police and Sheik Ahmed bin Saeed Al Maktoum, chairman of Emirates.

Bidding for 2020 Olympics could strengthen Dubai’s position as a global city and revive an economy that has been hit hard by the financial crisis. Dubai had earlier shown an interest in bidding for the 2016 games but didn’t submit a bid by the deadline.

The emirate may struggle to meet the financial burden of hosting the games, the world’s largest sporting event, as it struggles to deal with its debts that analysts estimate already exceed $80 billion. The winning bid to host the games is expected to be announced in the summer of 2013.

Japan’s Hiroshima and Nagasaki are also launching a joint bid for the 2020 Summer Olympics. Delhi, Istanbul and Budapest have already expressed interest in bidding.

If successful Dubai could become the first city in the Middle East to host the Olympics.              ref.Maktoob

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Dubai GITEX Week

October 25th, 2009

The Korea Trade-Investment Promotion Agency is working with 32 Korean companies at GITEX Technology Week.

Ref: http://www.itp.net/578187-korea-trade-reps-32-tech-firms/?tab=article

Mohammad Ali Golroo at Korea Business Centre

Mohammad Ali Golroo at Korea Business Centre

Many of them are keen to showcase the country’s unique culture, says the agency’s Marketing Specialist, Mohammad Ali Golroo.

“Culture-wise they really want to distinguish themselves from countries like China and Japan. From our perspective, in this part of the world, we tend to think that Korea is almost the same as those countries,” he says.

The companies come from a wide range of sectors, but the majority are in the marine, IT or industrial equipment and materials sector, he adds. The Korea Trade-Investment Promotion Agency provides services to facilitate business with Korean companies, including marketing, setting up meetings and organizing trips to Korea.

“We invite local investors to Korea and provide them with certain facilities, mainly from the Korean government, like hotel accommodation and flight fares,” says Golroo.

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Dubai faces 30,600 vacant homes by end ‘09

August 13th, 2009

Dubai is expected to have 30,600 empty homes by the end of year as more buildings are completed and the population shrinks, a new report shows, adding to concerns about a recovery in the emirate’s troubled property sector.

Abu Dhabi faces a shortage of 28,000 residential units, UAE daily Emirates Business reported on Thursday, citing a JP Morgan report.

The report said that beyond 2009, the forecast of 3.5 percent population growth for Dubai is unlikely to absorb the upcoming supply of residential units.

While Dubai has been harder hit in the economic downturn, oil-rich Abu Dhabi is using its vast wealth to press ahead with infrastructure projects, albeit at a slower pace.

“In the short term, we expect the non-residential sector in the UAE to remain under pressure given the global financial crisis. However, the historical shortage of both retail and commercial space in Abu Dhabi has kept falls in leasing rates well below Dubai,” the investment bank noted.

Rents in Dubai have fallen by more than half in some areas since their 2008 peaks, but areas closer to the Abu Dhabi border have seen occupancy levels rise as renters from the UAE capital move there to take advantage of lower rents.

ref: Maktoob

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Dubai says no to Sex and the City 2 filming

August 8th, 2009

The Dubai Government has refused permission for parts of Sex and the City 2 to be filmed at Dubai Studio City.

No reason was given.

Dubai Studio City said the producers of the movie, starring Sarah Jessica Parker, had submitted the script for approval to the government, UAE daily the National reported on Friday.

The studio said in a statement: “Further to the recommendation of the government authority, the request for filming was declined.”

Although the Sex and the City TV series is aired in the UAE, on Showtime, the first Sex and the City film was not shown in cinemas last year.

At the time, Roy Chacra, of Shooting Stars, the Dubai firm scheduled to distribute the film, said he did not see “what all the fuss was about”, the National reported.

The government’s refusal is not the first time it has said no to a studio to film in the country, the National reported. The producers of Body of Lies, directed by Ridley Scott, sought to film in Dubai but were denied permission by the National Media Council because of the script’s politically sensitive nature.

The internationally popular Sex and the City television series ran for six seasons from 1998 to 2004.

The 2008 movie grossed more than $150 million in Canada and the United States.

maktoob.com

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