business insights issue 7

Vol: 1 - Issue 7 | 1 September, 2014

A Comperative Look at Real Estate in KSA, Qatar and UAE

Top Five Most Awaited Real Estate Projects in the UAE

A Savory Sweet Journey to Success

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Rebuilding Egypt; Tourism and Real Estate

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Vol: 1 - Issue 71 September, 2014

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Associate PublisherMohammed Tayem

EditorNur Al Huda

Senior JournalistFatima Merchant

Senior JournalistMariam El Sayed

AdministrationPortia Lamberte

Creative DirectorSocrates Raymond

Graphic DesignerSamantha HettiarachchiMaryam Al Ayderousi

PrintingEn+ Productions

DistributorBlue Truck

Published By: entourage Publishing LLC

For information on advertising rates & positioning

Please contact: Inas AmorMob: +971 55 414 9296

Tel: +971 4 429 [email protected]

For information on editorials & articles submissions

Please contact: Nur Al Huda Tel: +971 4 429 1270

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Editor’s Note...

In our journey to producing the new face for Business Insights, we recognized a lack of thought-provoking business story angles in the region. From Business Insights, we want to provide a platform that not only gives information about business activity in the Middle East and GCC, but also asks the right questions by shedding light on angles of the story that are not often explored.

We believe that a proper business magazines needs to leave people with an imprint that changes their perspective and makes them realize the dynamic, ever-changing world of business around them.

This is how Business Insights was born; with a passion for asking the tough questions and providing the truth through credibility. It is exciting times for a business magazine in today’s world, and especially in the Middle East. Economies are changing, new grounds are being explored and everything is new and ready to be invstigated.

With this outlook, the team at Business Insights is making its readers a promise; to always provide a fresh perspective and to always be a unique view of the business world.

Our readers, together with our team, will shape the success of Business Insights- so we want to hear from you. Business Insights is the future of business writing- and the future is here. Let us explore it together.

Nur Al HudaEditor

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UAE; Real Estate Past Dubai


Qatar’s Rise to Real Estate Heaven

How to Lose a Client in 10 Days

Flying Close to the Sun

Current Events

Government Regulations on Real Estate

Country Focus: Jordan’s “Digital Age”


Bubble Talk…is Talk of the Past

A Look at the GCC Economic Market

A Look at the Current Market; Advertising Vs PR


Bringing “Shariah” to the Hospitality Sector

The Digital Role in Bringing Back the Real Estate Market

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The Saudi Arabian real estate market poses as one of the most interesting markets to look at in terms of investments. Consciously, the kingdom’s market would appear to be one that investors would refrain from seeking opportunities within. The large Arabian country is notoriously known for the strict religious regulations and laws that are not otherwise found in other countries; one law that has attracted international attention over the past few years, especially, is the kingdom’s law forbidding women from driving.

Not only is it commonly witnessed for many Saudi Arabian investors to invest heavily in other countries, both neighbouring GCC countries and internationally, it is also common for Saudi-owned companies to operate in other parts of the world. Whereas this fact may stand true, in the past few years, the KSA government has taken serious steps in the direction of

attracting investors to the kingdom.

As far back as 2011, the

real estate market would be one of the top ten markets in the world. Laws in the Kingdom were changing, and more than 500 billion dollars in real estate projects were under way.

In attempt to attract foreign investors to these projects, the government allows non-GCC national foreigners to own land and property in the kingdom. The ownership, unfortunately, is restricted. These restrictions, such as the need of a Saudi company establishment to hold the property on behalf of a “foreign” company, have frustrated foreigners and have limited the expansion of the giant country’s real estate market.

Further to this, Saudi Arabia has strict ‘anti-fronting’ provisions which mean that structures need to be carefully considered to ensure that they do not fall foul of these provisions. Foreigners are also not allowed to own land or property in the Holy cities of Mecca and Madina- two cities that retain a lot of the biggest real estate projects. Mecca, for example, houses one of the tallest towers in the world, the Mecca Royal Clock Tower Hotel.

Foreign individuals may own property in other parts of the kingdom under two conditions; that they have a normal legal residency status within the country and they have a permit from the Ministry of Interior. Although this does help many foreigners living in the country consider investing in the property sector, it limits investments from foreigners who either do not live in the country, or who do not plan to always live in the country.

government has begun to realize the importance of the country’s potential to attract investors, both local and foreign, but the true extent of what the KSA market can achieve has been exposed in recent months after the government announced that it will allow for foreigners to invest directly in the stock market.

With all the efforts made, there stands still some serious issues of ownership for real estate that keeps the kingdom from achieving its full potential with foreign investors.

In 2011, reports of the outlook of KSA’s real estate market were positive. Anticipated growth of the market expected that by 2012 the kingdom’s

Wasted Potential- Where Saudi Arabia Could Have Encouraged Foreign Investment in Real Estate

Islamic Mortgage LawsPreviously, the fact that banks in the kingdom did not offer mortgages limited the number of people who were able to invest in property in the country. Because mortgages are usually interest driven, the process is not considered Sharia-compliant and generally avoided in the Islamically-driven country. However, when the Ministry of Finance released a new mortgage law in 2014, of which has been in the planning stages for nearly ten years, it proved that the government’s aim was to make housing more affordable for its citizens, while keeping the options Sharia-compliant.

ACROSS THE GCC

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Despite these restrictive laws for foreigners, the Kingdom’s real estate market has continued to grow since 2011 and has reached an all-time high since the first quarter of 2014. By the end of 2013, the real estate Saudi market was estimated to be worth 2 trillion SR, occupying the place of the second largest real estate market in the world.

The first half of 2014 has only seen positive growth since. In March of 2014, the government announced to support housing by allocating nearly SR 250 billion to construct 500,000 units throughout the kingdom. Further to this, the country’s government also has continued to adopt expansionary policies to spend heavily on important infrastructure such as roads, ports, airports, schools and hospitals.

With a more attractive infrastructure, more attraction to the real estate market can be expected. For example, the King AbdelAziz International Airport is expected to be completed by the end of 2014, and the JLL MENA real estate forecast report expects that its completion will further attract attention to the real estate market.

Widely known to be the gulf country cheaper than its neighbouring countries, the kingdom attracts many families and young men looking for jobs. According to recent reports, the government estimates that nearly more than 500,000 people require new homes annually.

According to the JLL Real Estate report, sixty percent of major developments in the real estate market are concentrated in Riyadh, Jeddah and Dammam. In the past three years only, nearly 50 new real estate developers have received license from the General Investment Authority in Saudi Arabia- many regional property firms have also been entered the market, mainly in Riyadh.

Many of the new developments are spectacular mega-projects. The $26.6 billion King Abdullah Economic City, which is being built on the Red Sea coast north of Jeddah, will have three luxury residential districts that will house 75,000 residents. A second project, Jeddah Hills, which is to be built in Jeddah at a cost of $11.2 billion, will consist of 20,000 top range residential units.

According to recent reports, current demographics require that around three million housing units need to be created by 2040 to meet the needs of the growing population. To further help the housing situation, the government could take mores steps in enabling more public private partnership models and projects.

KSA also suffers from a problem of vast, unused lands as wasted potentials. The government can further support these housing projects by encouraging the release of land for housing development.

The government has already taken many steps to attract investors, which

is apparent in the rise of real estate market. The decision of allowing foreigners to invest in the stock market has allowed for foreigners who cannot invest directly in property, can in fact invest in real estate companies, or the sort. True to this, reports released by Al-Arabiya early August have announced that since the government’s announcement in July, the focus of trade switched from big petrochemical firms and banks likely to be favoured by foreigners to second-tier stocks such as property firm Dar Al Arkan.

By Nur Al Huda & Fatima Merchant

KSA Real Estate and the Skyscraper Index The Skyscraper index is a theory that was developed by Andrew Lawrence in January 1999. His concept consisted of the idea that skyscrapers are completed just as a country goes into recession. Although the correlation cannot be necessarily proven, history seems to repeat itself in this sense. The first example goes as far back as 1929 when the Empire Building in New York was completed. Upon completion, the entire country went into the infamous Great Depression.

A more recent example suggests that Dubai has also gone into a recession upon the completion of Burj Khalifa, which currently stands as the tallest building in the world.

Is the steady growth of the real estate market in KSA destined for the same ill-fated ending of other countries as well? Will the tallest building in the world, the first 1-km high tower Kingdom Tower be lead to the demise of country’s all-high streak?

Vol: 1 - Issue 7 | 1 September, 2014 www.eqtisadona.com7

Qatar, a small country in size, yet big in making noise. Attracting headlines to their controversial stance, Qatar is a tricky country to discuss in terms of investments and economic stability. The small country is the richest country in the world per capita, sitting on the world’s third largest natural oil reserve. Qatar’s investments are publically displayed into funding a variety of questionable activities, for example, the Muslim Brotherhood.

Building towards a stable economy and a strong real estate infrastructure for years, Qatar has seen the large boom of to what extent money can do following the awarding of their 2022 World Cup event. The big event alongside a new tourism plan the country has set make Qatar’s real estate investments look promising, both for the current economy and in times leading up to the event.

Qatar has succeeded in creating attractive opportunities for real estate investors. Most investors like to seek opportunities that give them more than just the property resale revenue, such as rent generation. That means that investors are interested in

buying properties in countries where relocation is becoming increasingly popular; whether it’s for perspective jobs, education or/and tourism.

According to bayt.com, following Qatar’s announcement of the Fifa World Cup to take place in Doha, nearly 75% of Qatar-based companies have announced that they will be creating at least ten new job openings in 2014. Furthermore, Qatar houses many international educational institutes, such as Northwestern University and Cornell University. These factors combined, have driven rents to rise in the small country to all-new high.

Aerial view on Doha - capital of Qatar.

Qatar’s Rise to Real Estate Heaven

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Following Qatar’s announcement of the Fifa World Cup to take place in Doha, nearly 75% of Qatar-based companies have announced that they will be creating at least ten new job openings in 2014

The shift of more non-nationals moving into the small country caused a new focus into the property ownership of Qatar. As more foreigners moved into Qatar, more took advantage of the law that provides foreign investors with a residency permit. The difference is clear post-announcement of the Fifa World Cup. When the law was first introduced, the population rate had stagnated, according to reports by the DTZ Property Times, indicating that many non-locals were not taking full advantage of property ownership law.

However, the post-announcement period showed a significant increase in population and a correlation in the increase of real estate purchases by foreigners. The DTZ Property Times report showed that population grew by 11.6 percent at the end of March 2014 in a span of one year.

Like every other GCC country, local, GCC-nationals and foreigners experience different privileges. Foreigners are permitted to hold freehold real estate property on The Pearl, West Bay Lagoon and Al Khor

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Resort. Apart from this, there are 18 other investment areas that permit foreigner’s usufruct rights. Upon investment of properties in these areas, purchasers will be permitted to a five-year residency for Qatar. However, there are always a few strings attached to such permits, residency will only be granted if the units purchased are above 75 sq m area. Because many nationalities require a visa for entry to many GCC countries, Qatar included, non-GCC foreign investors seek out visa opportunities in order to allow them easy access into the countries for business and perhaps, personal, reasons.

On the other hand, GCC nationals enjoy more real estate investment opportunities than foreigners in the country. They are not just restricted to the 18 investment zones; however, they face other property ownership limitations. They are permitted to property ownership outside these zones but are faced with a limit of three-property proprietorship, the area of which must not exceed 3,000 sq m. However, the direct purchaser can

only use these properties for himself or his family; they cannot be used for investments and leasing purposes.

Knowingly, non-locals are restricted to just a few regions in ownership, this brings along the question of availability and supply of apartments. According to the DTZ Property Times report, there is a potential supply of apartments in the pipeline. Despite this, the slow growth in supply would mean that the availability of apartments to lease in the Diplomatic District and The Pearl remains limited.

This leads to the rising rental costs, which account for 32 percent weight in the consumer price index forecasting the inflation rate to a substantial level of 3.5-4 percent over 2014. DTZ researches that the tightening real estate market along with the rising construction cost is a threat to a stable inflation.

To foster investments or visitors into a country, real estate construction alone does not always work wonders. Even though Qatar has a modern network of roads, ports and airport facilities, other infrastructure developments such as the metro projects are also important to attract foreign investors into the country.

DTZ anticipates that the Doha Metro and the Lusail Light Rail Transit will have the biggest impact on the real estate market map. DTZ expects that the construction of the metro project will create a shift in the Doha real estate market map.

“Instead of certain wider Districts being classified as prime there is potential for smaller sub districts or hubs that benefit from immediate access to well connected stations to become prime real estate spots.”

As Qatar attracts more people seeking residency and tourism in its small country, Qatar should consider opening up more real estate investment opportunities for foreigners. Reports have shown that rents in Qatar are currently more expensive than any other Gulf country, indicating a high demand for housing. Regardless of whether it is the limitations on property investment implemented in Qatar, or its shaky, controversial foreign policy, there is an apparent skew in the demographic of real estate investors. According to DTZ Property Times, real estate investors in Qatar are predominantly locals, with only a few from the GCC and Middle Eastern countries.

Will the small Gulf country realize its wasted potential well before 2030?

Qatar should consider opening up more real estate investment opportunities for foreigners.



Expo 2020yes, it Helped

The UAE is not Just Dubai

There is no doubt that, although over-stated must yet be discussed, by winning the bid for Expo 2020, Dubai helped the UAE with a positive economy boost. Such an announcement has brought along a lot of promising economic and infrastructure growth. According to albawaba.com, Dubai was named the world’s strongest housing market in 2013, given the city’s status as a safe haven with improved consumer and investor confidence. As the economy grows, many travel to Dubai in search of jobs and various other kinds of investment opportunities.

As more and more people move into Dubai, demands for residential flats continue to rise. These demands and emigration rise are correlated

Over the past few years, the United Arab Emirates has made quite a name for itself, both in local and international schemes. Currently housing the world’s largest mall, the tallest building in the world, and the biggest man-made island, the UAE- and specifically Dubai- has been accounted as an attractive tourism and business destination from people all over the world.

The UAE holds the biggest and fastest projects in the world, becoming the country with the highest percentage of cranes in accordance to size, in the world. As the UAE completes ground-breaking projects, the UAE’s real estate market has become a sight of investors globally, attracting a lot of visits by potential investors.

UAE; Real Estate Past Dubai

with Dubai winning the bid, and this has also added into making other consumer commodity rates increase. With this, the rents have also seen a hike in increase increasing demands as an advantage to obtain more rent. According to a report by the Land Department, Indians are the biggest foreign investors in Dubai property in the first half of this year. Jordanians are on top of the list from Arab countries.

Whereas Dubai is often the main focus point for real estate discussions in the UAE, it is important to remember that the UAE is larger than just Dubai and that other Emirates also play a pivotal role in the larger market.

A look at Abu Dhabi’s real estate market, for example, would incite an idea that it is more stable in comparison to the dynamic nature of Dubai. According to Global finance, the Abu Dhabi

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Busy Sheikh Zayed Road in the evening

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Investment Authority tops the list of the largest sovereign funds at US$ 627 billion in 2012. This Emirate compared to the other six has the largest oil and gas reserve. But the large economic activities from the past few years have significantly contributed to the GDP and have reduced Abu Dhabi’s dependency on oil. Abu Dhabi has also planned infrastructural and environmental development by releasing the “Abu Dhabi 2030: Urban Structure Framework Plan,” in 2007. With this plan, Abu Dhabi aims to heighten developments through a 25-year program in the city. Some of the major projects in Abu Dhabi that have caught the attention of many worldwide are: Yas Islands, Saadiyat Island, Masdar City and Al Raha Beach. In an attempt to attract foreigners into Abu Dhabi, the emirate announced in January that foreigners will be allowed to own property in Abu Dhabi on a freehold basis in designated investment zones, reported by Reuters. Previously, this was not the case and foreigners were generally limited to leasehold arrangements with 99-year leases.

The cultural capital of UAE, Sharjah is the third largest emirate accounting for 47 percent of the industrial GDP of UAE. Sharjah from the past one year has benefitted from an increase in residents moving in from Dubai due to its rental increase. According to the DTZ Property Times Dubai, with the continued real estate recovery, increasing rental costs and non-oil growth output, CPI inflation is expected to increase to 2.4 percent in 2014, in line with the regional average. Ownership laws of Sharjah allow for only Emirati locals and GCC nationals the right of property ownership in Sharjah, hardly encouraging investors to be attracted to its property market.

In the past year, Ajman has also been receiving a lot of residents due to the increased rents in Dubai. It has experienced incredible growth in almost all the major sectors. The smallest emirate in size, Ajman did not focus on real estate developments when other emirates such as Dubai and Abu Dhabi were undergoing huge developments. But it soon realized its potential and began working towards its real estate

boom after 2005. According to Tara Marlow, from Tamimi Investments, “Ajman allows foreigners to own a right of freehold or usufruct, including long leases for a term of 50 years with the approval of the ruler of Ajman.”

This purchase right attracted a lot of investors into the region. In addition to this, a property in this Emirate costs a lot less than the ones in Abu Dhabi, Dubai and Sharjah.

Ras Al-Khaimah has not always been on top of the list for property investors, and an undervalued destination for UAE visitors. This is mainly because it used to be perceived as a cement producer Emirate, far from real estate attractions.

Ras Al Khaimah was not seen as an ideal location for real estate development despite their freehold property concept. The concept allows foreigners to own property in specific projects- provided that they established a company in the Ras Al Khaimah Free Zone or Al Hamra Free Zone and purchased the property in the name of the company. Recently, some of their major projects such as the RAK Gateway City, Al Marjan Island, Dana Island, Mina Al Arab and Saraya Island are attracting some foreign investments.

These few laws that attempt to draw out interest in the real estate market have not been tapped into completely. Despite the fact that other Emirates are showing great potential, the investment flow is focused into Dubai. Just in the first half of 2104, nearly 19 billion dirhams have been invested into the real estate market in Dubai, with locals making up 66% of the investors. According to the Land Department, foreign investors from 162 countries have conducted property transactions in Dubai alone. Is the competition simply far too high for other Emirates?

Abu Dhabi City View



Day 6: Pretend You haven’t Read Their Email upon Follow-up Calls

Every time they call to do a follow up of the emails sent to you earlier, pretend that you haven’t read them even though you have. This will soon leave them under the impression that you don’t value them.

Day 7: Now is the Time to Listen to Ignore

Continue to listen and nod. Once the client is done talking nod, smile, blink and say I understand with no further comments. This will definitely leave the client uncertain about your services.

Day 8: Make Excuses and don’t Provide all the Services

You have their money in your bank account and there is nothing they can do about taking it back. Thus, make excuses and don’t provide them with all the services; this in turn will save you costs and keep you two days away from losing them.

Day 9: Cut Quality and not the Price

Your quotations are very high, so many might assume that your quality is the same. But again it is just an assumption so you don’t need to feel compelled to provide the same quality. Don’t hesitate to prove their assumptions wrong.

Day 10: And Finally Break Every Strand of Trust

Allow the client to trust you with sensitive details and issues. But once you have it all forget about ethics and be the first one to release off the record information.

There you go you, congratulations on your new achievement. You have finally lost a valuable client.

Day 1: Just be a Little Inconsistent

Make sure that the final product is a little different from the samples that were initially presented. The client might let it go this time, but voila the trust barometer is one point down.

Day 2: Just Stay Silent

Staying silent helps in the long run. Staying silent for the first few days might give the client an idea that you are probably working on presenting something concrete to them. They might have no idea that the proposal is the last one under the pile, but soon they will realize.

Day 3: Become Borat the Dictator

Once they sign-off, make sure you give them a feeling that everything they have done till now is so outdated. Be strong about it, make them feel as if you are providing them with redemption. This will gracefully allow you to let them snap.

Day 4: Forget About Building a Relationship

Just do the formal work and stick to it. You don’t need to update them about recent happenings of the company. And just forget sending useful information to the client, unless and until you want to sell it.

Day 5: Ignore Feedback

Always type out “feedback will be appreciated” at the end of emails. But don’t forget to shred the feedback or send it to the trash. Let them wonder why you didn’t improve based on their feedback. Be mysterious.

How to lose a client in

days0

HOW TO

12

The Success of the Middle East’s Biggest Low-Cost Carrier and the Factors that Contributed

Flying Close to the Sun

SUCCESS STORY

14

The first flydubai aircraft took off from the grounds to Beirut on June 1, 2008 in Dubai. This was the beginning of flydubai’s journey to the clouds of success. Their official set up in March 2008 by the government of Dubai marked the beginning of future plans and hard work to set their own standards in the aviation business. On June 2008, flydubai announced its arrival by placing an order for 50 Boeing 737-800NG aircraft at the Farnborough Airshow. It did not stop there, over the years flydubai invested in more planes. With all this and much more, flydubai has established itself as one of the largest low-cost airlines.

Beneath the free flowing bands in shades of blue and orange lays the reflection of the landscapes and coastlines of Dubai. While blue represents the cool, calm waters of the Arabian Gulf, orange brings home the hospitality if Arabian people and the warmth of the UAE’s climate. With

developments increasing at a fast pace in Dubai, it is very important for a key industry like this to be versatile and flexible, adopting to the fast developing environment of Dubai. Versatility, flexibility and adaptability are the key attributes of flydubai’s business strategies. It has also enhanced Dubai’s economic development, in line with the government of Dubai’s vision, by creating trade and tourism flows in previously underserved markets, said Ghaith Al Ghaith, the CEO of flydubai.

flydubai Today

Aviation developments since 1985 have summed up to making Dubai an everlasting growing flight industry. In a successful environment, flydubai has proved to add significant value to this industry by contributing to the diverse range of networks Dubai aviation has to offer. According to the Strategic Plan 2020, Dubai airport forecasts a cumulative annual growth rate of 7.2

History-First Seed Planted

Dubai, known for its lavish luxury, surprised the world by announcing that it will launch a low-budget airline. At the time Dubai launch flydubai, there were many low-cost carriers across the GCC. Although flydubai was not the first low-cost airline to be introduced into the GCC market, or even the UAE market- as Air Arabia had preceded it by a few years, flydubai has grown in a quick manner, competing with and even exceeding its competition.

Ghaith Al Ghaith, flydubai, CEO


By Fatima Merchant

flydubai’s CEO, Ghaith Al Ghaith, said that since its launch in 2009, it has been committed to enhancing connectivity between different cultures and has created a network of more than 75 destinations.

flydubai is a good example of a low-fare business model. It was generated to provide its diverse travellers with convenient, reliable and affordable short-to-medium haul scheduled point-to-point non-stop commercial flights. It is important to provide for all people who wish to travel to the hub of the Middle East. Making Travel Easier- (Keeping Things Simple)

flydubai had further moved on to providing facilities for all types of travellers. In August 2013, it began to provide Business Class cabins on all new aircrafts delivered since. Passengers who prefer Business Class seating’s have an added option to choose from. With this, flydubai still manages to maintain its image of quality low-fare carrier since the Business Class tickets cost a lot less compared to other airlines.

flydubai is the first airline to launch the ‘Fiber-To-The-Screen’ system from Luxemis. According to the spokesperson, it has been well received by passengers across their network. In addition, it caters to a variety of audiences since the inflight entertainment services are available in English, Arabic and Russian.

Future plans

flydubai currently has a developed international network that covers the Middle East, GCC, Africa, Caucasus, Central Asia, Europe and the Indian Subcontinent. It targets high demand destinations of up to five hours non-stop to and from Dubai. It recently started its new services to Kandahar in July and Aden at the beginning of August. The airline will also start flights to Moscow and Kazakhstan in September, Mumbai in October and to Sarajevo and Zagreb in December. Recently, flydubai announced Tehran as a new destination starting from Aug. 11, and Mashhad starting from Aug. 10 in Iran. It is further looking at expanding its network in the market as it continues to strengthen the trade and travel links from Dubai to the region. It will be the only carrier to offer Business Class from Dubai to Mashhad.

In these few years of operation, the airline has built up a modern fleet of over 35 Next-Generation Boeing 737-800 aircrafts that is growing rapidly. It has the youngest fleet of narrow-body aircraft in the Middle East with an average age of 2.4 years. flydubai continues to grow its fleet; it placed a USD8.8 billion at the Dubai Air Show in November 2013 that included 75 of the Boeing MAX 8 variant. This is the Middle East’s biggest order of 737 and deliveries will be over a six-year period between 2017-2023. The order also includes 11 Next-Generation 737-800s and purchase rights for an additional 25 more 737 MAXs. flydubai continues to expand with new plans. Who would have imagined that in just five years of operation flydubai would have come this far. It has experienced an admirable financial performance. flydubai announced a AED222.8 million net profit in March 2014, a 47 percent increase over the 2012 figures. According to the Strategic Plan 2020, aviation importance is expecting continued growth over the next decade. With this, flydubai’s new networks and fuel efficient aircraft orders placed will contribute to the increasing profits of flydubai as well as the success of the local aviation industry.

percent together with the expected expansion of services operated by the 150 airline that fly into Dubai. With this, it is clear that there is great potential for more future growth of flydubai.

flydubai has also surfaced as one of the fastest growing airlines in the Middle East. With many factors contributing to this, Dubai’s location is one of them. Dubai is located at the junction of east and west and it is at the center of an active global industry. flydubai has a daily aircraft utilization rate of 14.5 hours, which is the highest in the local aviation industry. It does not stop at this, flydubai also offers its travellers a more monetary friendly alternative to get to their final destination.

In 2013, flydubai launched 17 new routes taking the passenger number to 6.82 million. It doubled its network in Russia to eight destinations; underlined the commitment to its network in the Kingdom of Saudi Arabia with 10 destinations, many of which previously didn’t have direct flights to Dubai, as well as Salalah in Oman. It ended the year with the first direct flights to Chisinau, the capital of Moldova. In addition, it has opened up 50 new routes that previously didn’t have direct air links to Dubai or were not served by a UAE national carrier from Dubai. Such expansionary plans and more contributed to making Dubai one of the busiest airport overtaking Heathrow’s spot as the world’s number one in the first quarter of 2014.

SUCCESS STORY

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SUCCESS STORY

In the past few years, the image of Egypt in people’s mind has changed. Rather than “Um El Donya”, a colloquial term coined lovingly by Arabs to refer to Egypt as “the mother of the world,” Egypt has become a sad façade of turmoil and chaos. Arabs still looked to Egypt lovingly, longing for the days of which Egypt was stronger, and more stable. With a new president sworn into presidency, on June 8th, 2014 the new Egyptian President Abdel-Fattah Al-Sisi brought much hope into Egypt.

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As Egypt is on the path to regain its economic and political strength, the question rings through the remains of buildings that have been brought down through the unrest of the ancient country; is it time to begin rebuilding Egypt’s real estate infrastructure?

The truth of the matter is, Egypt is home to some very famous tourist destinations visited by travelers from all over the world. As the nature of politics changed in the country, a lot changed along with it. The change altered the tourism and investment rate into the region and although the political unrest was only centered in a few cities, many people were oblivious to the fact that many cities in Egypt were not affected at all. The revolution had, unfortunately, overshadowed much of what Egypt still has to offer today in terms of tourism and real estate.

COVER STORY

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Currently, Egypt is financially recovering the loss the economy had been experiencing since the tumult. It has moved forward since the reelection and is now working towards sustainable tourism projects as well as rebuilding the infrastructure. The infrastructure of Egypt during the revolution experienced great lost. But today companies like Majid Al Futtaim and Arabtec are investing heavily in the construction sector of Egypt.

Many other projects are also dedicated to improving the economic situation of Egypt. For example, the exhibition ‘Cairo Build’ that is scheduled to take place mid-October, aims to promote the construction and building sectors in Egypt. According to Egypt-business.com, the growing construction sector is expected to attract investments up to $US 7.3 billion by foreigners. This exhibition is working towards

uplifting related industries such as cement, iron, furniture and electricity; these sectors of the industry are the main revenue generators. In attempt to further attract investors into the market, a proposal was put forward in mid-August to grant the Egyptian citizenship to investors who contribute large sums of money to help improve the country’s economy. This proposal given forward by Sameh Sedki, the head of the Arab Union for Direct Investment, is yet to be presented and approved by the Egyptian government.

The proposal was as follow: Each person giving $250,000 to Egypt will be granted the citizenship along with his wife and children of under 15. This fund will be transferred to the Construction of Egypt. Since the workforce in Egypt is cheaper, many

Middle-Easterners are expected to be attracted to this proposal and to prefer an Egyptian passport over a European one.

In the meantime, the Egyptian government is taking serious steps to attract not only investments into real estate, but to attract tourists to the country’s almost-forgotten beauty. In a country where economy is being rebuilt, tourism and real estate are closely correlated. Tourism brings more people to the country, causing a demand for real estate projects such as hotels, serviced apartments and rented apartments. Where tourism grows, real estate invests increase hungrily. Luckily, tourism in Egypt is also gradually regaining confidence after the parliamentary and presidential elections. With this, the Egyptian Ministry of Tourism is expecting high levels of travel compared to what was previously witnessed by the region before the revolution. It is hard to gain the trust of visitors from abroad after what the country has been experiencing in the last few years, but situations have begun change.

This year’s elections have given residents and tourists an assurance level of better safety and security ahead. But such assurance has been accompanied by many initiatives put forth by the ministry.

The end of the revolution and the new elections in 2014, has produced hope and potential for better economic stability. It is hard to say when this will be achieved, but with new plans ahead, Egypt is on the driveway to stability. As the new president elected in June, Abdel Fattah El-Sisi promises to “correct the mistakes of the past,” there is potential for this country to rebuild itself in the near future.

Egypt, according to the Travel and Tourism Competitiveness Report in 2013, had an overall rank of 75 in 2011, but this rank dropped by 10 points to 85 in 2013. This significant drop is a reflection of the political crises, but this fall could have been much more substantial. Even though the tourism patterns in many cities of Egypt changed, there were still a few cities that were not affected much. The city of Sharm EL Shaikh and areas around the Red Sea did not experience the effects of the turmoil. These areas are well known as tourist destinations worldwide.


Government data showed that tourism revenue in the first quarter of this year dropped 43 percent. Despite this, the industry sees tourism returning in the region. Egypt Tourism Minister, Hisham Zaazou says that tourism will return to Egypt and the world will witness it. He adds that “There is a global plan that will showcase the safety and fun attached to visits in Egypt.”

The positive change is already underway; the Egyptian Ministry of Tourism and Egyptian Tourism Authority have proudly revealed that

in June, visits from Saudi Arabia have increased by 2.3 percent i in a span of just one year.

Tourism

Along with great places to visit, tourists demand security, which is among one of the reasons travelers were nervous about selecting Egypt as a destination. But since the ousting of President Mohamed Morsi and his government, a lot changed in a span of few months. With government plans, Egypt’s seems to be regaining its lost tourist numbers.

Zaazou has said that the Tourism Ministry in Egypt plans to attract more than 25 million tourists by 2020. Revenues are expected to double from the peak of US$ 12.5 billion within the next six years. Recent figures by the government also show that tourism contributes 11.3 percent of Egypt’s GDP and brings in 14.4 percent of foreign currency revenues.

The European countries that once placed a travel warning on citizens have observed the improving security situation, which has made them rethink their bans. France, Spain,

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Denmark, Ireland and a few other European countries have lifted travel warnings to the tourist hotspot of Sharm El-Sheikh in July. Some of the European countries have also amended their warnings towards other cities in Egypt. According to Zaazou, after Germany’s Foreign Ministry lifted its ban, the total accommodation occupancy rose in the Red Sea by 70 percent and by 55 percent in South Sinai. Such positive growth has made the ministry work towards lifting travel warnings by other countries. The lift of such bans is very important for Egyptian tourism as president of

the Tourism Investors Association, Adel Rady said that 98 percent of tourists visiting Sharm El-Sheikh are foreigners.

The Egyptian Tourism Authority (ETA) has officially released the country’s tourism figures for 2013, tourist sites experienced 9.5 million visitors with more than 2 million visiting South Sinai and the Red Sea. According to zawya.com, Zaazou said, “…the statistics from Sharm El Sheikh and Hurghada show vital indicators, as they highlight the continued influx of tourists to these two destinations,

regardless of political circumstances – emphasizing the tourists’ belief in both locations’ security and safety.”

The chaos had affected many tourist attractions but there were exceptions even during the time of the turmoil. According to the Economist, the Red Sea resort of Hurghada had still managed to draw sun-seeking Russians during the time of the revolutions. Sharm-el-Sheikh was also a tourist destination that managed to be an appealing destination away from all the Egyptian political tumult.


The clear water and lavish resorts of Sharm-Al- Sheikh were considered to be safer than other locations that were close to the protests. Last year, Mohsen Aziz who runs a famous tourist resort in Sharm-Al-Sheikh said that the occupancy for the first time in nearly two years has reached 70%. Most of the tourists were from Russia, Czech Republic and the United Kingdom.

While some areas were not significantly affected, many other sites were. Popular archeological sites such as the Pyramids had been neglected according to Mahmoud Shukri, from the Ministry’s Tourism Promotion Authority. The tourism rate declined in these areas due of the lack of regulation. In addition, Egyptian £21 million were allocated to improve the security system. This amount will also help to repair the walls of these ancient sites.

‘Masr Wahashtouna’

Wahashtouna is a campaign launched by the ministry in order to promote tourism from Arab and Gulf countries. It has received a 100 percent response rate from anyone who has seen or heard about this campaign. According to advertising sources, such as Ipsos, between April-July, it happened to be the most talked about tourism campaign. The top ratings and viewership were from UAE, Kuwait and KSA market through the strategic selection of prime time programs and channels.

This campaign has been exposed to a lot of competition from other tourism brands that are aiming to target the same market. Despite this, it received exceptional response and it is going into the second half of the year. As part of this long-term campaign, the Ministry of Tourism will be giving its visitors exclusive offers. Zaazou emphasizes that the Arabian Travel Market is very important since the Arabs make up more than 20 percent of tourist that visit, particularly Sharm El-Sheikh and Hurghada.

As part of the offer, Saudi Arabia and Kuwait have launched direct flights to Hurghada and Sharm El-Sheikh. Tourists from these destinations and UAE have also been offered travel packages that include air tickets and hotel stays at an affordable rate. These offers as part of the campaign are

done in close collaboration between the Egyptian Ministry of Tourism, Egyptian Tourism Authority and the Egyptian Chamber of Tourism Establishments, Egypt Air and a number of hotels in Egypt.

During a press conference in Dubai, Zaazou said that these packages are offered to Arab neighbors in an attempt to boost tourism. The campaign name ‘Masr Wahashtouna’ is translated to mean ‘Egypt misses you,’ he took the opportunity ‘to express how much Egypt values Arab tourists, according to zawya.com.

Zaazou encourages Arab investors to invest in Egypt specifically in the tourism sector, as the ministry is currently providing them with easy and transparent procedures. He said in the conference that Arab investments

represent 9 percent of foreign investments in Egypt, according to zawya.com.

Aid

In the past three years, Egypt has received a total aid worth of US$ 10 billion to repair the effects of the political turmoil, violence and security deterioration. Saudi Arabia, Kuwait and the United Arab Emirates granted an amount of $5 billion, $4 billion and $3 billion respectively.

This aid from Saudi Arabia was divided and US$2 billion were deposited in Egypt’s Central Bank, US$2 billion worth of oil and gas were given and US$1 billion were given as a monetary grant. Kuwait granted US$1 billion worth of oil derivatives, US$2 billion in deposits and $1 billion in aid. UAE announced an aid

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package to Egypt including $1 billion as a monetary grant and $2 billion as a no interest loan.

These funds were injected into the economy in an attempt to improve tourism and the declining economy. Egypt currently has 225, 000 hotel rooms and 2,966 more in the pipeline. These also include 145-rooms from Dubai’s TI’ME Hotels in Luxor, which are expected to be completed by the end of this year.

The results from Egyptian Ministry of Tourism and Egyptian Tourism Authority (ETA) report showed that there is a noticeable increase by 6.3 percent of tourists from Saudi Arabia, 10.8% from Kuwait and 35% from UAE. International aid was a good boost to the economy, but Egypt required much more than that. It required long term investments from countries abroad.

Infrastructure Investments by Companies Abroad

Egyptian real estate markets have faced ups and downs during the long-lasting turmoil; nevertheless, the market had remained robust during the first quarter of 2013. Before the civil unrests, the property market was going upwards and the construction activity was picking up. The revolutions weren’t a complete barrier to improve the real estate market. This is proven by the high residential stock pattern of Egyptian properties during and after the ongoing protests on the streets of Egypt

The residential stock is showing an increase, yet we notice that there has been no change in the completed stocks between the years 2013-2014 due to the unstable situation during.

As the political environment changes in Egypt, many see stability and better economic growth ahead. Decisions to invest come along with confidence in Egypt’s growth and expected demands of housing. Wealth funds are not always enough and for a country to come out stronger after the turmoil, long-term investments are important.

Head of the Jones Lang Lasalle Egyptian office according to Global Property Guide, Ayman Sami said, “With stronger tourist arrivals and higher GDP growth, 2014 could mark the beginning of the recovery of the Cairo real estate market, providing that the progress that has been made on the political roadmap during late 2013 is continued.”

Arabtec Holding is set to build one million houses for lower income individuals. This project worth $40 billion is expected to complete before 2020. Arabtec says that this project will create more than one million jobs for the people of Egypt. In addition, it will cover 160 million square meters across 13 sites in Egypt.

Dubai retailer Majid Al Futtaim also has plans of investing EGP 16.5 billion over the next five years. According to Daily News Egypt, there will be four commercial malls in Cairo’s districts of 6th of October, Maadi and Almaza and in Alexandria with EGP 11.3 billion in investments. These projects are expected to create 38,000 direct job opportunities, a statement from the Ministry of Industry, Foreign Trade and Investment.

The GPG report shows that in the second quarter of 2013, about 4,400 residential units were completed and 73% of them were located in New Cairo. These residential places include Madinaty (Talal Mostafa Group) which delivered 2000 apartment units. Lake View, Hyde Park, Layan Residence, Family City, High Land and Hayat Heights were all a part of this development with 350 villas, 50 apartments and 50 villas, 140 villas, 300 apartments, 150 apartments and 192 apartments respectively.

The after effects of the turmoil proved to be beneficial for the whole economy. The Egyptians were keen on working towards rebuilding the Economy. President Sisi promises the Egyptian citizens that Egypt will get a grip on


their economy once more. Since the political conditions in Egypt are more stable compared to the previous years, Bloomberg reported that according to independent financial analysis, these smart investments boosted the GDP growth by 1.5% in November 2013. There are ongoing efforts of the Egypt Real Estate Summit (ERES) is to bring a number of international experts and discuss boosting the Egyptian Economy Market. This summit discussed the role of the government in helping to recover property market in Egypt and the economy of the country in general.

The main aim of this summit was to revive the property and real estate sector in the coming years and plan to develop new cities all over Egypt. New urban communities will not only attract the Egyptian citizens but foreigner will invest in them because they are new and they are demanded in the region.

According to zawya.com, the Ministry

of Housing, Utilities and Urban Development Mostafa Madbouly said, “We are working aggressively on amending legislations, which will create an attractive investment climate. In addition, we are working to finalize all investor settlement cases in order to reinstate investor confidence in Egypt,”

A report from zawya.com shows that Hassan Hussein, Chairman and Managing Director of El-Taamir Mortgage Finance Co-Al-Oula, said that the Egyptian real estate market is still attractive for foreign investment due to the high volume of demand for properties as well as the government’s solid steps towards the completion of the roadmap.

Despite the consistent uproar of revolutions in 2013, the residential stock rose by 10.45%. Foreign investors were very skeptical to invest in Egypt, but after the reelection, the economy was doing better with aid from Saudi Arabia, UAE and Kuwait. In addition, Gulf Arab companies

are returning to Egypt by seeking investment opportunities. According to Daily News Egypt, UAE happens to be the third largest investor in Egypt. While Gulf Arab countries see political advantage in supporting the new authorities, westerners still remain cautious about investments, despite high levels of tourists coming in from European countries.

Egypt is now concentrating on building its economy, nevertheless, it will not be fixed overnight. The efforts of construction and investment companies are now working on replenishing the financial status of the country via working on bringing back the lavish tourism of Egypt and the beneficial investments.

By Fatima Merchant &Mariam El Sayed

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WITH VOYAGER AND OTHER PRODUCTS

IN THE AIR

ON THE ROAD

IN THE SEA

barrels per day leave the kingdom for export. There is a noticeable increase in the number of oil barrels exported compared to the previous year.

KSA has depended on its oil reserves for far too long- it depends on little other than oil to support its economy. In this day and age, technology has developed to an extent where there is speculation to the importance that oil will even play in a few years. Inventions like “Shale Oil and Gas”, a cheaper replacement to the conventional crude oil, is on the rise. If trends such as this take hold, oil prices could potentially sink, leaving KSA in the face of a neo-financial crisis.

Despite the strength of the KSA market at the time being, Saudi Arabia might soon lose its ability to manipulate its current fiscal market, considering that the current budget revenue is limited and constrained by the week revenues of oil production. These facts are built upon the fact that the economic growth

slowed to 4.3 % compared to last year’s 40%. If the oil keeps dripping between the finger spaces of Saudi Arabia, it might end up in an economic tragedy.

Kingdom Tower: Money Loss by the Hour?History tells us that economists should be able to “predict” a financial crisis before it happens the same way a meteorologist can predict rain. It appears, through a theory identified as the “Skyscraper Index” that when a country attempts to reach for a skyscraper, its economy suffers. Could the building of the Kingdom Tower lead KSA into the same fate?

Qatar and FIFA 2022: Smart MoveSince most economies of the GCC countries are fluctuating, Qatar had

Is it Time for a Rebound?There is no question that the economic crash worldwide has adversely affected GCC countries with the Kingdom of Saudi Arabia on the top of the list. Across the GCC, the stock market has grown into the habit of constant fluctuation. The Kingdom of Saudi Arabia, for example, has seen a six-year high in the stock market after announcing that foreigners will be allowed to invest directly in the stock market. On the other hand, Dubai’s stock market prices crashed earlier this summer after the CEO of the giant construction company, Arabtec, resigned.

It is because of these fluctuations and ever-changing circumstances that make it important to always attempt a long-term vision for the different economies of the different countries, being aware of the decisions taken by governments and business-owners to impact the stock market and other organic growth numbers.

Saudi Arabia Can Crash Oil MarketIn mid-2007, the financial crash ravaged the KSA market due to macroeconomic reasons such as international banking and the kingdom’s plans to invest in constructing the world’s tallest tower “Kingdom Tower.” Although the KSA market is doing better at this stage in time, could the long term effects of the irrational race that KSA insists on running to win international acclaims of its development lead to its undoing and produce adverse economic effects?KSA is quite comfortable in its confidence of managing oil export laws, given that it shares the leading spot with Russia for oil exports. According to reports done by OPEC, 90.8 million

A Look at the GCC Economic Market

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hit the bull’s eye by deciding to host Fifa 2022 on its lands. For sure it is an intense subject for criticisms however this event will for sure lead to domestic economic growth which will help redeem the economic losses made when the global financial crisis took place in 2009.

The domestic loan growth in Qatar has reached 12 percent last year and is linked to the expansion and preparations made for improving infrastructure projects for the world cup.

Economic OverviewDespite the ups and downs the gulf economy has been facing recently, Qatar has continued to grow economically as the Qatari government had protected the local banking sector with direct investments into banks and gas exporting. In other words, the Qatar Investment Fund (QIF) forecasts a GDP growth of 5.1 percent compared to last year’s GDP growth of 4.9 percent. Unlike Saudi Arabia, Qatar is now concentrating on investments to balance between the requirements of the tournament itself and the future use of the investments.

Moreover, Qatar smartly invests in capital projects as the government has reportedly allocated 40% of its budget between now and 2016 only to infrastructure projects.

Oman: The Survivor of Economic Instability?Tourism added five billion dollars to Oman’s economy last year and the latter entered the economic race with confidence even though its growth is slightly lower than that in 2013. According to the International Monetary Fund (IMF), the Omani GDP will grow by 3.4 percent in 2014.

The foreseeing of good Omani economy may lay in the projects that are ongoing. For instance, Duqum

Economic Zone (SEZ) is covering 1777 sq km which will attract supposedly about 20 billion dollars in the long term manufacturing.

The Economic OutlookThe Omani government has increased the minimum wage amount and created jobs for their nationals in civil and defense sectors in particular. In addition to this, they limited the amount of expatriates to be 33 percent in these sectors. To improve its economy further, the government decided to equalize the salaries given to employees in public and private sectors, decreasing the difference in salaries in the sectors to prevent downsizing the work force.

It is clear that each GCC country has its own approach to dealing with the economic structure of its country. Investing in oil export, construction and making international deals are all different ways being implemented. However, it is very important for each GCC country to recognize that a main or sole economic player will eventually deplete the country of its resources and lead to a weak economy.

By Mariam El Sayed

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It is important for companies seeking these different marketing tools to understand exactly what each marketing tool can do for a brand. According to Tony Lewis, founder and CEO of Total Communications, companies employing PR do so to communicate with, and influence their customers, stakeholders and wider audiences to deliver messages about who they are, what they do, and how they do it in order to stand out and be heard.

Whereas PR is less popular than advertising methods, which are believed to show a RIO in a much quicker, much easier to calculate processes, PR gives the advantage of going deeper into a brand’s history, services and/or products.

It is advertising, rather than PR, that is aimed at encouragement and persuasion to drive consumer behaviors. Advertising does not elaborate in lengthy word processes how a brand would be able to serve consumer’s personal needs, nor does it give you a history of the CEO’s success. Advertising focuses, instead, on factors such as finding the best space and appropriate medium to advertise the right messages. A drive on Sheikh Zayed Road in the flourishing consumerism of Dubai would entail just that; where so many brands compete on the most popular street in one of the commercially-biggest cities in the Middle East, the ones that catch our eyes are the ones that use the best advertising space available.

Both PR and advertising methods have become so dynamic, and change so constantly, that if an agency does not cater to the newest habits in the

media, they risk being left behind in a whirlwind of Dubai dust.

Companies in Dubai, and the UAE, have exhausted all methods of traditional advertising and PR. Only recently introduced to the country is the concept of 3-D advertisements. Brands such as Evian, Samsung and Adidas have all had creative, attractive 3-D featuring bigger-than-life mobile phones, soccer shoes and water bottles.

Whereas PR is less popular than advertising methods, which are believed to show a RIO in a much quicker, much easier to calculate processes, PR gives the advantage of going deeper into a brand’s history, services and/or products.

As the advertising and public relation segments become more consumer orientated than any other segment in the industries present within the UAE, their importance have climbed to an all-new high. Companies often approach auditing firms for the purpose of verifying the figures in financial statements; similarly they contact PR and advertising agencies to raise awareness about their brand for creating, planning and handling marketing for them.

Demand for PR and advertising are both high and this can be seen with the emergence of media zones in the region. Media companies are now clustered around particular hubs like the Media and Internet City thus supplying to the PR and advertising demands of businesses. The power of both these segments cannot be underestimated nor should agencies handling them stick to traditional methods.

As media evolves, the methods of communication has also become diverse and complicated and agencies are being forced to reach audiences in new, evolved ways as well. An in-depth look at the market suggests that for the most part, PR and advertising agencies are still undergoing a power-struggle to attract companies to what each believes is the most powerful marketing tool. 2014 has proven to be a blooming year for agencies catering to marketing needs in the UAE. Post-EXPO 2020 announcement has driven budgets towards the marketing departments of large corporates, who realize that in order to be seen in a city where hundreds of other companies compete, investing in marketing is exponentially important.

A Look at the Current Market;

ADVERTISING PRvs

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The Other Side of the SpectrumExpenditure in public relations cannot be measured in the same way. Newspapers are not paid to run articles for corporates and companies; rather companies pay PR agencies for their media relations and ability to ensure media coverage on specific news.

Rather than discussing expenditure to understand the reach of PR, the number of people who read newspapers and magazines (and access social media, given that social media often is accounted as a sub-category of PR) can be reflected on. In the UAE, the total number of readers (who read a newspaper/magazine at least once a week) makes up nearly 69.3% of the adult population.

PR is not contained merely to media coverage, and can reflect anything that helps improve a company’s relations with the public. Social media interaction, viral videos and television interviews all go in the mix. Thus, making it extremely difficult to quantify the importance of PR services as a marketing tool.

Dr. Ralph Berenger, associate professor of the Mass Communication program at the American University of Sharjah said that advertising is most effective when it addresses a specific issue, offer or product, but it can also be important to an integrated approach toward image-building for companies as part of strategic campaigns. Expenditure in advertising is quite high, with leading brands such as Coca Cola and Ariel spending millions of USDs in advertising for the LEVANT market. Carbonated soft drinks, for example, top the advertising expenditure in the food and beverage market for 2014 by a landslide, which was worth a whopping 793,638,000 USDs by the end of 2013- a number only expected to increase as reports for 2014 are released.

It is not uncommon for companies who are already well-known in the market to spend so much money on advertising, says Abhiroop Sen, strategic marketing consultant at entourage marketing & events. Creative advertising helps maintain a brand, he explains. According to the Pan-Arab Research Center, companies in the UAE spend in television advertising mostly, followed by a large distance newspaper and magazine advertising. The least invested media outlet are outdoor and cinema advertising. Such spending is expected, where, according to IPSOS, in 2014, on average there are nearly 6.205 million (unduplicated) locals, Arabs and Expats in the UAE have watched television at some period of time.

Why Advertising?


The market in the UAE has witnessed a shift, where moving beyond product publicity and doing special events to encompass the full range of corporate brand building functions and the full range of corporate reputation management, digital and social media. With this, integrated communication is playing a big role in the market today as companies look for agencies that can do all in one as this saves them more time and money. Commenting on this, Professor Berenger believes that having an integrated marketing department makes a lot of sense in today’s streamlined, efficient and profit-motivated businesses.

Each marketing tool plays an important role in an integrated marketing scheme. PR through live communication provides creative solutions to enhance social media activity as well creating public and media awareness. Whereas, advertising through live communication goes way

beyond just raising awareness of the brand, it extends into making products and brands accessible turning them into experiences.

And there is of course the spillover effect, since Dubai is a frequently visited place, making it strategic for brands to have prominence in the UAE. This helps brands expand into other markets, as the awareness of the brand would already be established by then. This entails a relationship with everyone who comes in contact with the brand, so at the end of the day PR is not just about getting coverage in the media and advertising is not just about creating awareness. It is about building trust and gaining customer loyalty.

The changing dynamic in the UAE has introduced a whole new thought on marketing; a perception conceived as live communication.

“Live communication is about realizing that in order to reach our audiences, we need to go all the way back to point zero and plan a marketing strategy that includes and integrates all communication methods,” said Sen. “Live communication is now being offered by agencies who realize that all the marketing tools work together in order to achieve a perfect marketing harmony.” All ad campaigns, for example, must be built-in PR campaigns- that means that all advertising work should keep in mind an image statement for a brand, and try to go viral.

Integrated marketing, another term for the marketing approach, has become increasingly important in today’s market.

A New Era

By Fatima Merchant & Nur Al Huda

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Profit from News That

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CURRENT EVENTS

Apple has posted 14 UAE-based job openings on its official website for a “retail store”. Albeit Apple products are already being sold in premium retail stores like Virgin Megastore and iStyle, an exclusive store in the region. this will be the first exclusive store in the region. There is a great chance this will boost the number of Apple product buyers and especially that iPhone 6 is on its way to the international market. An already popular retail technology store, how will the biggest Apple store in the world contribute to technology spending in the UAE?

Abu Dhabi’s Al Noor Hospitals will open two new cancer care units in the emirate including a day surgery unit and an early detection unit. Al Noor paid around 2.18 million dollars for Gulf International Care Center (GICC) as it is the only private cancer treatment center in Abu Dhabi.

Dubai developer Damac launched another mega golf-centered project in Dubai with the theme of “Escape the City”. Damac AKOYA Oxygen is a logical continuity to the AKOYA brand. Construction will commence with 3 to 6 BR townhouses starting from AED 1.6 million. As the construction sector in the UAE keeps developing, how will this project contribute to the financial sector?

Apple Store to Open in Dubai

UAE

Cancer Units in Al Noor Hospitals Group

Damac AKOYA Oxygen

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Jeff Singer, the chief executive of the Dubai International Financial Centre Authority had resigned after working in the center for six years. The previous executive refused to give comments or reasons for his sudden resignation. However, last year the DIFC reported record business figures with a 14% increase in the number of registered companies. Can it be expected that this number increases or decreases after his departure?

EWA has announces that it has started a new video chat service for special needs customers. It has become the first government services in the UAE to support speech-and-hearing impaired citizens, paving the way for more technology developed governmental services.

Due to open in November 2014, Aldar projects announced this month the inauguration of Abu Dhabi’s largest shopping mall destination offering 400 retail units with many ranges of international and regional brands. It will include 20 state of art screen cinemas. This will be a major contributor to the economy of Abu Dhabi because over 80% of Yas Mall is committed to major international retail groups including Al Shaya, Majid Al Futtaim and many more construction companies.

DIFC Authority Chief Executive Resigns

DEWA Launches Video Chat Service

New Yas Mall to Open


CURRENT EVENTS

The Kuwaiti government cancelled a proposal to privatize petrol stations and instead will build 100 new outlets. This decision was made to keep the revenues from increasing in an illogical sense, as Kuwait relies on oil and gas revenues for about 90% of its $115 billion worth the state revenues. Hence, Kuwait prefers- and smartly so- to keep its oil companies protected by the government.

Bahrain topped the list among GCC countries as it recorded an inflation rate of 3.10% over the first half of this year. This affected the prices of other furniture, household goods and maintenance products causing them to increase in other GCC countries because of the importing and exporting relation between Bahrain and the other GCC countries. The political instability in the region has played a large toll on Bahrain, and the effect on the economy has begun to show.

Oman will lay out its blueprint for renovating its transportation system all over including roads, rails, airports and ports. This project is said to identify more private and public sector development and to increase the employment rate and number of workers in the Omani transportation system including aviation and railways.

Kuwait-Cancelling the Privatization of Petrol Stations

Middle East

Bahrain-Highest Inflation Rate in the Gulf

Oman- New Transport Blueprint

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International banks in Saudi Arabia started shrinking as the kingdom plans to open its $557 billion stock exchange to direct international investments. International banks like Barclays find it extremely difficult and loss driven to compete with the investment banking arms of local banks. There could be more dollar debt issuance by Saudi companies which could benefit international trading banks in the near future.

Qatar reportedly agreed to stop offering their citizenship to other GCC nationals, as this is said to threaten their national security. The falling out between Qatar and its neighboring countries is yet to see some reconciliation as Qatar continues to support and house many of the Muslim Brotherhood leading figures.

Former Air France senior executive Paul Gregorowitsch has been appointed as the new chief executive officer of the state backed carrier Oman Airlines. This will be a start of a new chapter in the development of the sultanate’s flag carrier. The Oman Air announced that it was already increasing its share capital by $519 million from $293 million in 2013.

Saudi Arabia- Barclays Saudi Arabia Cancels its License to Conduct Business

Qatar- Stopped Offering Citizenships to GCC Nationals

Oman- Appointing a New CEO


owner of the PappaRoti franchises in the Middle East.

A pioneer as an Emarati Business woman, Rasha stands out from others around her. She never felt entitled to the achievements she made for herself. It’s important, Rasha says, to learn everything first hand, rather

than jumping into the position of an entrepreneur or businessman/woman.

Her own dream began long before she knew where she was going to go with it. She knew, however, that she was destined to become a successful businesswoman. It is said that a successful person knows that they are going to be successful; and Rasha just knew. She knew she had the passion it would need to fuel the success of whatever business she would launch.

When Rasha first embarked on a journey to uncover where her success may lay, she only knew one thing; that she wanted to work in the food & beverage industry. She had previous on-ground in different fields; she worked in finance and in real estate construction. Looking back at the fact that she took her time to learn a variety of experience from different industries, Rasha cannot be more thankful for these choices.

Rasha had her first taste of a PappaRoti bun in a small kiosk in Malaysia. The savory and sweet taste shocked her

At first glance, Rasha Al Danhani would appear to be just another customer enjoying a cup of tea at the PappaRoti, Mirdif City Center branch. With a closer look, the determined look on her face and the notes in front of her become apparent. Surrounding herself with marketing experts and interior designers, every moment is a valuable working moment for the


It is not very often that an Arab woman, especially a business owner, would know how to work a coffee machine, but I learned how to run my business-through and through. If I do not know how to prepare the Roti bun, how would I know if the staff are doing it correctly?

POWERFUL WOMEN

Rasha Al Danhani - Owner of PappaRoti

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taste palette, and to her surprise, stayed with her long after she had gone back to her hotel room. The next day, she found herself craving the same bun, and that was the first step towards making her decision of bringing the PappaRoti bun to the Middle East.

“Choices are not always logical,” Rasha explains, referring to her gut feeling about the PappaRoti bun. When asked how she knew that this would be the main driving force behind her success, Rasha flusters, but cannot answer. There are feelings you cannot explain, she says. This is one of them.

Rasha approached the owner of the small, nearly hidden kiosk. She wanted to sign for the franchise of PappaRoti for the entire Middle East. The owner, although kind, was skeptical of Rasha’s success. How would a woman as herself, just starting out in the world of business, be able to take the franchise of the entire Middle East, he wanted to know.

But Rasha insisted. She knew that this bun would become very popular in the Middle East, and she knew that she needed to start big. After all, you cannot cross a chasm with two small steps.

After the agreements and papers went through, Rasha’s real work began. A life-long passionate learner, Rasha does not believe that a businesswoman’s role is investing in a business, while taking the backseat to employees carrying out the actual work. Rasha flew to Malaysia, where she took courses for two months on the art of perfecting the sweet, savory bun. Next, she traveled

to Korea, where her stay for a month further helped her perfect the bun through more courses.

The next few months were long and tedious as Rasha prepared to launch the first branch of PappaRoti in the Middle East- in the heart of Dubai, in the largest mall in the world. Construction could not be done during

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the day, so Rasha insisted on being with the construction crew on a daily basis from 12 am until 8 am. Her background in real estate construction helped her ensure that everything was on track.

As the opening date loomed closer, Rasha struggled with regulations and paperwork to import products for the PappaRoti bun. The process was long and uncertain, and every day fear gripped at Rasha’s heart that something would go wrong. “It was faith that got me through it all,” she says, smiling, her eyes still ignited by the adrenaline of her success. She was still haunted by the unavoidable questions, would the public like it? Would it really be as successful as I think it could be?

On September 9th, 2009 (intelligently chosen by Rasha, a special date for a special occasion), the first PappaRoti

store opened. So much time and effort had been invested to see this reality come true, and Rasha - who had not slept in 48 hours- was determined that everything goes smoothly.

An Abaya-clad Rasha was offering passer-byers free samples of the Roti bun. When the staff were overwhelmed by the amount of buns being produced, Rasha found herself in the kitchen, working the coffee machine. “It is not very often that an Arab woman, especially a business owner, would know how to work a coffee machine, but I learned how to run my business-through and through. If I do not know how to prepare the Roti bun, how would I know if the staff are doing it correctly?” Rasha explains. Her experience does not only enable her to tell the quality of a bun simply by sight, but she can also tell what drink is made from afar by the color of it.

Seeing the smile on people’s faces when they tasted the samples of the bun, Rasha was finally able to breathe. Her dream of being a businesswoman was finally coming true.

Five years ago, Rasha was one of the very few Emarati businesswomen who had the courage to not only run a business from outside her home, but to actually have a fully-operating café. It helps, Rasha claims, to be part of a country that supports women’s right to running a business. Women of the UAE, she points out, have expanded into every part of the working society.

Rasha’s first steps into the world of business have been great example for other women. She receives emails on a daily basis from young women and men who are inspired by her success and ask for her advice. She, of course, is happy to help wherever she can. It delights her to see other Emirati women inspired by her success. Her daughters are most influenced by her success; and the biggest followers in her footsteps. She calls them her mini-businesswomen, and encourages them to pursue their own dreams, as well.

Rasha claims that the main driving forces behind success are time management and originality. She believes that mothers are as capable of becoming businesswomen as women with no children. She rejects the idea that a mother simply does not have enough time. On the contrary, Rasha believes that a mother who is a business woman sets an even better example for her children.

“What entrepreneurship does to a person is remarkable. It has helped me mature, helped me make logical decisions; I am more confident and I know my capabilities,” Rasha says.

Her biggest advice to those seeking the same path as herself? “Passion,” she says, her eyes sparkling with the very essence of that. “If you love something and you are passionate about it, and you are one-hundred percent convinced it will work, then nothing in the world can stop you.”

And it seems that nothing in the world can stop Rasha Al Danhani as she expands her PappaRoti brand further than the UAE and the Middle East.

By Nur Al Huda

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According to the Managing Director of Minhaj, Dr. Amin Amer, giving tourists the option of Shariah-compliant hotels is just as important as an option of hotels that offer alcohol, since visitors of Dubai belong to different backgrounds and countries. For some, Dubai is known for its nightlife, but it

is also growing quite popular with the conservative tourists. But since Dubai experiences a lot of western visitors, the perception is that Shariah-compliant hotels might face potential challenges while competing with the highly demanded hotels in the region. Amer says that many believe Shariah-compliant hotels are a minor segment with very few people interested. He explains that Shariah-complaint hotels are not, in fact, competing with international hotels that have alcohol, mixed-pools and nightclubs. Instead, these hotels are interested to catering to the, seemingly narrow, segment of people who look for hotels without bars and the “works”.

“Dubai always keeps the option and tries to respond to the needs and demands of people no matter how small the demand, you will always find that there are different kinds of services provided in a way that answers all the demands and needs of people from different backgrounds,” he added. The whole concept behind the setup of Shariah-compliant hotels is quite interesting, but are these hotels promoted enough to attract the right customers in an attempt to stimulate the tourism industry of growing GCC visitors?

While many tourist attractions cater to regional sensitivities, some hotels in the region are not able to deliver to demands of dry hotels. Shariah-compliant hotels appeal to the growing Muslim travelers market in Dubai. The increasing disposable income of Middle Eastern travelers is one factor contributing to the demand of these hotels. For example, many vistors from Saudi Arabia are interested in “family-oriented” places to visit; a Shariah-compliant hotel would serve perfectly for their needs. Catering to these needs is important for Dubai, given that, in 2013, Saudi Arabia drove the largest number of visitors to Dubai.

Incorporating Islamic values with the hospitality and the tourism industry is not an outdated concept. There may be a high demand for hotels that offer alcohol- also known as “wet hotels”- in the ‘City of Life,’ but demands for hotels catering to regional sensibilities are not ignored.

Bringing “Shariah” to the Hospitality Sector‘The City of Life’ attracts visitors from all over the world, in such a flourishing tourism industry, to whom will a Shariah compliant hotel appeal?

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that we believe that we can succeed even without offering things that are prohibited by Shariah.” He explains that when you offer something that people want, even if you prohibit something else they seek, they will still come to your service if they need it. He gives an example by saying that even though smoking is prohibited in malls, people still visit these places while enjoying themselves.

The introduction of more Shariah-compliant hotels in this region can be an added incentive for the growing Muslim travelers market. The GCC Travel Characteristic report shows that the family size of GCC travelers ranges between 4-12 including maids. Such travelers prefer keeping their cultural needs, traditional bonding

and lifestyle needs intact while choosing a destination. Dr. Amer says that Shariah-compliant are not just attracting Muslims since there are people from western countries who are also interested as to keep their privacy when it comes to certain activities. “Shariah-compliant hotels have separate pools for men and women. Whereas this is extremely appealing for Muslim [covered] women who would not otherwise get the chance to swim in mixed pools, such hotels also attract women from different backgrounds who find the privacy also appealing,” he added.

The hospitality and construction sector in Dubai has observed the importance of Shariah-compliant hotels in the region. Damac hotels launched a fully certified Shariah-compliant serviced apartment hotel, Constella, during the Arabian Travel Market. In addition, Al Jawhara group of hotels and apartments established in 1979 by the S.S. Lootah Group is the first Islamic hospitality venture in UAE. Al Zahra Hotel is another upcoming Shariah-compliant hotel developed by Al Olama Properties. Sparkle Towers, by Tebyan, is yet another luxury Shariah-complaint hotel expected to be launched in the near future.

According to muftah.org, there are more than 12 hotels based on the Shariah-principles in Dubai one of which is owned, managed and operated by R Hotels under the Ramada brand and belongs to US-based Wyndham Hotel group. These are just a few of the projects that indicate the demand of such hotels in the region.

The ability of Dubai to attract millions of visitors comes with a demand of more hotels. Its robust economy attracts visitors from all over the world that seek experiences according to their conveniences. Whether they are GCC Arabs or westerners, Shariah-compliant hotels are open to all provided, visitors accept and stay within the parameters of the Shariah law.

A “Shariah-compliant” must meet many requirements in order to be considered such. It is often a misconception to assume that a hotel which does not serve alcohol (or a “dry hotel”) can be considered Shariah-complaint on its own. Dr. Amer says that in order for hotels or institutions to be considered Shariah-compliant, they should be willing to follow the Shariah rules, principles and guidance in accordance of all its activities.

With a lot of wet hotels in the region, it is often argued that these dry hotels generate fewer returns in the food and beverage section from an investment perspective. Dr. Amer believes that a Shariah-compliant hotel will survive as he adds, “With a Shariah-compliant mentality, it is important

By Fatima Merchant


When prices begun to rise with an unscaled measure in Qatar, the government put a two-year cap in order to protect citizen’s rights to rent. Earlier this year, the timeline for the two-year cap expired, and while realtors and home owners rushed to raise rents, a single question rang out; should Qatar establish a real estate regulatory body that could potentially solve all the problems of rent that Qatar could expect to face in the upcoming years as its population grows? Reports from the small gulf country have confirmed that Qatar was, in fact, planning to establish a regulatory authority.

There must be advantages to both sides of the argument- both of which will be discussed in this article- and to illustrate, we will look at an example of a regulatory authority, and the affect it has on the real estate industry.

Government regulation is a topic that has been discussed at every point in history, beginning from as early as the introduction of a “free market” ideology, encouraging to allow a market to take its natural course of development.

There must be advantages to both sides of the argument- both of which will be discussed in this article- and to illustrate, we will look at an example of a regulatory authority, and the affect it has on the real estate industry.

Government Regulations on Real Estate

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of the real estate market; namely, the EXPO 2020 announcement in Dubai, and the FIFA 2025 announcement in Qatar. Regardless of the regulations, real estate prices are driven with aggressive force, only to be brought crashing down once more.

A government authority would go as far as to regulate the cap of increase in prices, but when most owners reach for the peak of the cap, prices remain unsustainable and difficult to comprehend for most renters and investors.

RERA has been working diligently in wake of the last economic crash, realizing that an economic boom should not be built on a real estate market growth. In the past few years, and leading up to today where real estate prices have begun to creep up on the same prices as 2008, the government regulating authority has reassessed the market, releasing a list of cancelled projects earlier this year.

The role of such a government regulating authority is meant to ensure that every person maintains their rights in a real estate transaction. A look at the comments of any pending projects from the pre-2008 period would suggest that there are many investors who are unhappy with the

job being done by RERA. Comments on the Dubai Lagoon project, for example, beg authorities to take action as investors wait for a handover of properties bought as far back as 2005. Perhaps it is difficult for RERA to fix mistakes that have already been made in the real estate market a few years ago, but an outlook at today’s market would assume that the government’s regulations are helping the market mature in a way that will avoid a repeated market crash. According to Craig Plumb, head of JLL research for the Middle East, the government regulations of having real estate developers phase projects and measures to combat flipping means that it is unlikely to witness a bubble burst this time around.

A regulating authority cannot be a miracle worker, and there will always be someone who is unhappy with the regulations that either allow prices to rise too high, or not high enough. The most important point to drive a regulating authority should be to realize the true potential of a market, rather than over-expecting outcomes in hopes of a tomorrow that is real estate-centric.

What Governments Can Do to the Real Estate Market

There is no doubt that each real estate market differs from the other and each government is different than other governments around the world. However, the basics remain the same across the spectrum.

A free market theory will assume that rises in prices will occur upon demand- that is, where there is an increase in demand, there will be an increase in prices. Based on this assumption, it would be safe to say that a regulatory authority would not be needed; that as long as there is demand, rents will be paid and the real estate market would have a chance to regulate itself.

It would appear that real estate markets who have government regulatory authorities are often hit by a real estate crisis. One of the biggest examples is the United States, which currently houses the largest government housing police in any government worldwide. As opposed to other developed European Union countries who have no government regulations, the United States ranks very low in homeownership and ranks very high in mortgage rates. According to Dwight Jaffee, a Professor in Banking and Real Estate, market without regulatory authorities are more stable and more likely to have lower mortgage rates.

On the other side of the spectrum, and the world, comes another example of a very strong regulatory authority, also known as RERA. This Dubai-based authority, launched in 2007 by HH Sheikh Mohammed Bin Rashid Al Maktoum, aims to regulate the real estate organizations and agents in Dubai. At first sight, RERA may be deemed a strong advocate of the rights of investors and renters in the country; however, with closer inspection it becomes apparent that in their role to regulate, RERA actually plays an advocate role for both parties.

It is important to note that when governments regulate the real estate market, it does so in line with its ambitions for the growth of the economy and the future of the country. Hence, certain events in a country play a role in building expectations

By Nur Al Huda


and focused on off-plan properties, demand these days is considered real demand generated from real investors who are buying completed properties.

While future supply in certain high end areas like Dubai Marina, Down Town and Palm Jumeirah will be very limited due to lack of available plots to develop, there is plenty of supply coming in from secondary areas like Jumeirah Village, Silicon Oasis and surrounding areas. This is keeping the prices in these areas reasonable while still attracting investors.

Furthermore, we can see a very clear stability in villa prices since the beginning of the year; the prices are expected to remain this way since there seems to be an over-supply in villa projects being introduced by developers over the past 18 months.

Most reports and experts believe that this moderate growth in property

prices will become the trend over the coming two years, especially with more off-plan projects coming to the market over the same period. This is good news for property experts and is welcomed by all investors, as well.

The office market has finally started to see some recovery with demand shifting to more high quality offices in central areas like Business Bay. However; the overall curve for offices is expected to be flat with modest growth due to many projects approaching completion in the same area.

The hospitality sector, on the other hand, has been on fire and gaining momentum due to the increase in touristic activities in Dubai, which has attracted increasing numbers of tourists. The vision of the year 2020 is to double the number of tourists to reach over 20 million and also double the number of hotel rooms to reach 160,000.

Elsewhere in the Middle East

Saudi Arabia is really the only market with any significant activity, mostly driven by huge government spending in infrastructure projects like airports and metro systems. Based on real estate reports, the supply side is still struggling to find reasonably priced plots to build the much needed units required by the market, and the gap between supply and demand is becoming bigger and bigger. This of course is driving prices higher, especially in major cities like Riyadh and Jeddah.

Other regional markets, like Turkey and Morocco are offering attractive real estate investment and development opportunities; mostly due to their political stability in such volatile region. Egypt is also offering great potential for local investors, but international investors are being very selective; most of them are taking a “wait and see” position.

Given the instability in the region, regional investors are also diversifying their real estate investments by investing in familiar markets like London, Spain, France and even the US.

There was a huge buzz earlier in the year about the risk of a property bubble in Dubai, and I have to admit, there were some valid reasons supporting these arguments including an average year-over-year increase in property prices of 30% and the return of 20% premiums on off plan properties – mostly asked about by speculators. However, the first half of 2014 showed a much needed stability in sales prices coupled with less premiums and more realistic pricing for off-plan properties. Unlike the boom period of 2008, where demand came mostly from speculators

Saudi Arabia is really the only market with any significant activity, mostly driven by huge government spending in infrastructure projects like airports and metro systems.

Bubble Talk…is Talk of the Past

By Tariq Ramadan, Guest Writer

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According to Chadi Saab, digital director at Starcom UAE, real estate marketers in MENA have just begun to realize the importance of digital marketing and have begun, albeit slowly, shifting over to the digital age in order to maximize their margins and minimize marketing expenses as the real estate industry continues to jostle with falling sales.

Apart from the usual digital media tools, blogs also play an important role leading to SEO which in turn helps to improve the rank of a particular website in the search engine results. According to Rich MacLaren, program director at DM3, effective email marketing and blogging can affect how a customer views a particular company based on their personal interest level. “If the

Gone are the days when real estate consumers received information about projects that senders initially intended. Such traditional methods of marketing are way behind us and the world is moving more towards the digital phase. This has enabled consumers to find out much more about real estate than what the holding companies intend. With digital marketing they get insights into peoples experience with similar services and much more. Consumers are more likely to believe such reviews than the advertisement itself.

In this technological phase there is a significant shift towards digital marketing in many industries across the United Arab Emirates such as retail. However, according to digital marketing agencies, much of this significance has not yet been seen in the real estate market. Real estate companies need to understand this and rethink their marketing strategies to match those of tech savvy individuals in the region.

Few real estate agencies in the UAE have started to hire digital marketing experts to keep up with the move away from traditional methods. It has become increasingly important for the real estate market to understand their online marketplace because if they don’t, they might end up underestimating customer demand for online services. As Social Media Analyist Aaron Taylor says, “A bad online presence and campaign is more damaging than having no presence at all.”

The Digital role in Bringing Back the Real Estate Market

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content is intriguing, interesting, adds value to the customers life this might put the company on a ‘first-name’ basis with the customer so that when the customer thinks of real estate they synonymously think of Company X, just as when you think of tissues you might automatically think ‘Kleenex,’” he added.

With e-commerce in Dubai expected to be valued at $10 billion by 2018, the strengths of digital marketing need to be recognized to its full potential. Not only is it important to come up with effective strategies, but providing professionals with knowledge related to marketing and technology should also be on top of the list. Since it is mainly these professionals along with consumers who will give digital marketing a higher platform in the real estate market.

Social media content is another contributing factor that can help improve the real estate market. But much of it depends on the content. As MacLaren puts it, “content remains king.” He adds that the significance of producing content that is engaging and original is imperative. To do this,

it is important to step out of the ‘stale’ and ‘boring’ content of real estate. This will further enable real estate agencies to understand and take advantage from all that social media has to offer to these agencies and consumers.

Improving online facilities and updating web information should also be a focus for real estate agencies. This may not improve the market significantly considering that many agencies already have this under control. But improving online response time and providing additional information availability will show that, “as a company you value the relationship you are trying to create, and in doing so humanizes the brand,” discussed Taylor.

Real estate agencies need to grip on to this phase of technological advancements. Many just choose a few digital marketing tools according to their convenience. But understanding and managing digital marketing can help the real estate market by a great deal. This is mainly because the whole idea behind digital marketing is building trust with ‘perspective buyers,’ as ‘trust’ equals ‘sales,’ and sales equals ‘revenue,’ says Taylor.

By Fatima Merchant

real estate marketers in MENA have just begun to realize the importance of digital marketing and have begun, albeit slowly, shifting over to the digital age in order to maximize their margins and minimize marketing expenses as the real estate industry continues to jostle with falling sales.


Country Focus: Jordan’s “Digital Age”

it has only started to pick up in some parts of the world. Jordan, for example, has begun to see a lot of increased engagement in this past year, and digitally, the shift has been remarkable.

In 2013, Jordan launched a 2013 ICT strategy that includes plans to

Although it is true that strategies of global marketing, advertising and social media have been fluctuating, there is not a doubt in anyone’s mind that the world has entered a “digital age.” Most countries have only begun picking up on a digital trend, and whereas growth in social media has begun to stagnate in many countries,

The increase of penetration doesn’t only come from Jordanian houses, it also comes from internet cafes and is encouraged by university, schools and work offices. Most of the users (64%) are males under the age of 29.

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As people read less newspapers, more advertising has begun to shift online. According to the Pan-Arab Research Center, advertising budgets have shifted to online platforms, leaving outdoor advertising and newspaper advertising with much lower budgets than previous years.

Ironically, Jordan’s biggest advertisement spenders, are accounted for the telecom industry.

SMS and Mobile Advertising

Whereas SMS advertising is not considered all that popular in other countries, in Jordan users are extremely attracted by SMS advertising; over the past few years, it has even gained popularity over outdoor advertising.

The shift in SMS Bulk investors can mainly be attributed to the fact that nearly 53% of mobile subscribers subscribe to SMS messages and advertisements, from once per day to several times a week. Unlike the rest of the world, Jordanians take SMS advertising very seriously, and do not consider the messages they receive on their phone as SPAM; according to a survey done by 66% in 2014, Jordanians rather enjoy receiving such messages.

Stay In Touch

According to a survey conducted by the Ministry of Information and Technology in Jordan, some 48% of mobile holders use their phones to take

pictures and videos, 28% access social networking sites such as Facebook and Twitter, 13% to get political news, 9% get health news and 5% to make or receive payments. The 28% who use the social networking sites do so to stay in touch with their family and friends. According to the report staying in touch with friends and family is the number one reason that drives Internet users to use social networking sites.

Internet to Boost Jordan’s Economy

This radical shift into the digital world is good news for the country. As more internet users are attracted to the revealing world of the web, it would appear that the economy of Jordan is facing healthy growth. Citing recent studies on emerging and developing economies, the minister of Information and Technology said that every 10 per cent increase in Internet penetration correlates with an incremental gross domestic product increase of 1-2 per cent.

The increase of ICT penetration in fields of education, health, energy and commerce will increase the employment in the country and boost its economic growth. Abed Shamlawi, the CEO of ICT Association of Jordan said that under the current ICT strategy, which has been put in place in the late months of 2013, employment in the sector will increase from around 16,000 to around 20,000 by the end of 2017.

The Jordanian government, which seems to be interested in driving further traffic to online platforms, has lowered the tax of internet services from 16% to 8% in the past year. This step from the government has encouraged the private telecom sector to expand connections to rural areas in Jordan.

It cannot be denied that the “Digital Age” of Jordan paves the way to countries all over the world to become dependent on the internet. The question is though; will the “Digital Age” of Jordan be an era where effective marketing be solely driven by online platforms? Will outdoor marketing slow down, and maybe even disappear?

increase internet penetration in the country from 63% (the percentage in 2013) to 85% by the end of 2017. A poor country otherwise, the telecom industry has begun to grow in size due to Jordan’s aggressive shift into data plans and usage.

News Shift

In a country where nearly fifty percent of its entire population has shifted onto an online platform, where now, nearly 3 million Jordanian are using the internet on a daily basis. According to Interactive Global Network of Independent Market, internet penetration in Jordan has doubled to at least 36% in 2013 and 2014. This monumental shift is noteworthy, because now, Jordanians are no longer engrossed in reading newspapers and magazines as before.

Instead, Jordanians have begun to prefer electronic readership, drawing a negative effect to subscriptions to newspapers and magazines. A survey conducted by IGNIM has revealed that 17% of Jordanians (46% of the Jordanian internet users) have visited news websites during the last month. According to the results, Al Jazeera held the first place followed by Al-Arabiya; 3% of the readership were given to CNN, BBC and Maktoob.

The increase of penetration doesn’t only come from Jordanian houses, it also comes from internet cafes and is encouraged by university, schools and work offices. Most of the users (64%) are males under the age of 29.

By Mariam El SayedFor advertising call:

055 653 3573



Project: Desert RoseLocation: Between Al Ruwaya

and Al AweerCompletion: Completed in time for

Expo 2020Cost: 20 billion

Project: Bluewaters Island

Location: Off the JBR coastlineCompletion: 2018Budget: 6 billion

Bluewaters will feature a souq that will include retail stores and a food hall. In addition, it will host a boutique five star hotel and varied residential options. One out of the three zones will contain the world’s tallest, 210m-high Ferris Wheel.

Project: Marina 101

Location: Dubai MarinaCompletion: 2014Budget: 1.3 bn

Marina 101 is intended to be the world’s tallest serviced hotel apartment building by developer Sheffield Holdings.

Project: Dubai LagoonsLocation: Dubai Creek, near Ras

Al Khor RoadCompletion: 2017Cost: 80 billion

The Desert Rose is expected to accommodate 20,000 plots for Emiratis and will cover a total area of 14,000. This project is aimed at enhancing Dubai’s ambition to become one of the top 10 sustainable cities by 2020.

Along with residential units, Tennis courts, health clubs, play areas and swimming pools are only a few luxuries of what the Dubai lagoon will offer its residents. In addition, shopping markets, cafes and restaurants are all situated within the premises making accessibility easy. The Dubai Lagoon was acclaimed at the Arabian Property Awards as the Best Residential Development in Dubai.

Project: AL Zorah

Location: Close to Ajman City Center

Completion: first phase expected to be completed this year (2014)

Budget: 60 billion

Al Zorah project includes five districts – a dedicated City Center comprising hotels, offices, retail centres, marinas and a large public square; Parkland Resorts - a community of six beachfront hotels and creek-side residences complemented by a 1.6 km stretch of sandy beach and 3 km lagoon frontage; Golf Course – an 18-hole championship course; Gateway, a high-rise mixed use community; and Corniche Village, with villas and townhomes that overlook the sea.

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business insights issue 7

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