"The unexpectedly deep plunge in home sales this summer is likely to force the Obama administration to choose between future homeowners and current ones, a predicament officials had been eager to avoid."
So begins the first paragraph of a story in today's edition of the New York Times that describes how the efforts of the government have failed to keep home sales from plunging over the summer.
It's a relevant discussion for the UAE, where the Government is continuously weighing the pros and cons of stimulating the property market or interfering with the decline in sales. So far, there has been some indirect support, particularly in Abu Dhabi. This has included Aabar Investment's buying of some Dh5 billion worth of land from Abu Dhabi developers at relatively high prices and Abu Dhabi Finance being able to borrow cheap funds from the Ministry of Finance to keep mortgage rates in the capital low. The latest and most dramatic effort would be Etihad Airways informing its thousands of employees that they could not use their housing allowance in other emirates than Abu Dhabi. Still prices have dropped precipitously.
Dubai, on the other hand, has taken a more laissez-faire approach to its housing industry (perhaps they had no choice). Prices have fallen by as much as 70 per cent in some truly unfinished areas, while the average has been more like 50 per cent. Rental rates have plummeted and vacancies are at an all-time high.
The changing landscape of the property market has led to thousands of Abu Dhabi residents fleeing the highly priced and generally lesser quality housing in the capital and living in Dubai's more established residential communities such as Jumeirah Beach Residence and Old Town. That would be a natural market reaction - when prices drop, people take advantage. This happened even within Dubai itself, where people upgraded from Sharjah's dormitories to Discovery Gardens and from Discovery Gardens to the Marina.
It would be interesting to hear more about the policy discussions under way at the top. There are certain subtle changes that could help Dubai's market overnight. If buyers of property could again receive three-year residency visas, then the Indian, Pakistani, Afghani, and Iranian buyers who want a safe nest egg in case things got rough at home would probably sweep through the market again.
That is the kind of change that is easy to stomach: removing onerous obstacles to sales. What the country doesn't want to do is place crutches under its industries to the point where they no longer have a momentum of their own. If you let the market fall, then there will be widespread losses for those who bet prices would keep rising but you present a platter of opportunities for new buyers.
So the dilemma for the UAE is akin to the one in the US. Do you help yesterday's buyers or today's? My vote is for the buyers who are in the market now. By letting them take advantage of properly depressed prices, more money will flood into the economy. Prices will naturally begin to rise again and enough confidence could be restored to make potential owner-occupiers feel more comfortable with buying a home they may only live in for five years.
Note: Saying that I support free market principles doesn't mean that I think the UAE shouldn't prosecute fraudulent developers; it means that where honest investments failed, people have to take losses.)
UAE currency: the story behind the money in your pockets
Recycle Reuse Repurpose
New central waste facility on site at expo Dubai South area to handle estimated 173 tonne of waste generated daily by millions of visitors
Recyclables such as plastic, paper, glass will be collected from bins on the expo site and taken to the new expo Central Waste Facility on site
Organic waste will be processed at the new onsite Central Waste Facility, treated and converted into compost to be re-used to green the expo area
Of 173 tonnes of waste daily, an estimated 39 per cent will be recyclables, 48 per cent organic waste and 13 per cent general waste.
About 147 tonnes will be recycled and converted to new products at another existing facility in Ras Al Khor
Recycling at Ras Al Khor unit:
Plastic items to be converted to plastic bags and recycled
Paper pulp moulded products such as cup carriers, egg trays, seed pots, and food packaging trays
Glass waste into bowls, lights, candle holders, serving trays and coasters
Aim is for 85 per cent of waste from the site to be diverted from landfill
Short-term let permits explained
Homeowners and tenants are allowed to list their properties for rental by registering through the Dubai Tourism website to obtain a permit.
Tenants also require a letter of no objection from their landlord before being allowed to list the property.
There is a cost of Dh1,590 before starting the process, with an additional licence fee of Dh300 per bedroom being rented in your home for the duration of the rental, which ranges from three months to a year.
Anyone hoping to list a property for rental must also provide a copy of their title deeds and Ejari, as well as their Emirates ID.
COMPANY PROFILE
Name: HyperSpace
Started: 2020
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
Based: Dubai, UAE
Sector: Entertainment
Number of staff: 210
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
COMPANY PROFILE
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded
COMPANY%20PROFILE
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DUNE%3A%20PART%20TWO
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The Sand Castle
Director: Matty Brown
Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea
Rating: 2.5/5
Ticket prices
- Golden circle - Dh995
- Floor Standing - Dh495
- Lower Bowl Platinum - Dh95
- Lower Bowl premium - Dh795
- Lower Bowl Plus - Dh695
- Lower Bowl Standard- Dh595
- Upper Bowl Premium - Dh395
- Upper Bowl standard - Dh295
City's slump
L - Juventus, 2-0
D - C Palace, 2-2
W - N Forest, 3-0
L - Liverpool, 2-0
D - Feyenoord, 3-3
L - Tottenham, 4-0
L - Brighton, 2-1
L - Sporting, 4-1
L - Bournemouth, 2-1
L - Tottenham, 2-1
COMPANY%20PROFILE
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Wicked
Director: Jon M Chu
Stars: Cynthia Erivo, Ariana Grande, Jonathan Bailey
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
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Europa League group stage draw
Group A: Villarreal, Maccabi Tel Aviv, Astana, Slavia Prague.
Group B: Dynamo Kiev, Young Boys, Partizan Belgrade, Skenderbeu.
Group C: Sporting Braga, Ludogorets, Hoffenheim, Istanbul Basaksehir.
Group D: AC Milan, Austria Vienna , Rijeka, AEK Athens.
Group E: Lyon, Everton, Atalanta, Apollon Limassol.
Group F: FC Copenhagen, Lokomotiv Moscow, Sheriff Tiraspol, FC Zlin.
Group G: Vitoria Plzen, Steaua Bucarest, Hapoel Beer-Sheva, FC Lugano.
Group H: Arsenal, BATE Borisov, Cologne, Red Star Belgrade.
Group I: Salzburg, Marseille, Vitoria Guimaraes, Konyaspor.
Group J: Athletic Bilbao, Hertha Berlin, Zorya Luhansk, Ostersund.
Group K: Lazio, Nice, Zulte Waregem, Vitesse Arnhem.
Group L: Zenit St Petersburg, Real Sociedad, Rosenborg, Vardar
The five pillars of Islam
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World Cricket League Division 2
In Windhoek, Namibia - Top two teams qualify for the World Cup Qualifier in Zimbabwe, which starts on March 4.
UAE fixtures
Thursday February 8, v Kenya; Friday February 9, v Canada; Sunday February 11, v Nepal; Monday February 12, v Oman; Wednesday February 14, v Namibia; Thursday February 15, final
Most%20polluted%20cities%20in%20the%20Middle%20East
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MOST%20POLLUTED%20COUNTRIES%20IN%20THE%20WORLD
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Greatest of All Time
Starring: Vijay, Sneha, Prashanth, Prabhu Deva, Mohan
Business Insights
- As per the document, there are six filing options, including choosing to report on a realisation basis and transitional rules for pre-tax period gains or losses.
- SMEs with revenue below Dh3 million per annum can opt for transitional relief until 2026, treating them as having no taxable income.
- Larger entities have specific provisions for asset and liability movements, business restructuring, and handling foreign permanent establishments.
TO A LAND UNKNOWN
Director: Mahdi Fleifel
Starring: Mahmoud Bakri, Aram Sabbah, Mohammad Alsurafa
Rating: 4.5/5
COMPANY%20PROFILE
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