The UAE’s residential coastline is set to expand significantly as land is reclaimed to build islands for thousands of new waterfront homes and keep pace with an insatiable demand for luxury property.
In what has become a hallmark of the nation’s rapid growth, marine coastal development has created islands visible from space and looks set to continue for years. Work is under way to build hundreds of homes on Palm Jebel Ali, a man-made island twice the size of the existing Palm Jumeirah. Other island developments are also set to begin construction, significantly expanding the number of luxury waterside homes for sale.
Dubai has become well known for this kind of coastal construction, and that is a significant element of the emirate's 2040 Urban Plan, which aims to attract huge numbers of investors and new home owners. Dubai Islands, near Port Rashid, which was once a key Gulf trading post, will comprise five islands spread across 17 square kilometres and 20km of beachfront.
White-hot real estate
The nearby Jumeirah Bay, La Mer and the 771,00-square metre Pearl Jumeirah in the Jumeirah One district are other man-made islands about to become bustling new neighbourhoods. With Dubai’s white-hot residential market showing few signs of cooling, millionaire investors are focusing on waterside developments.
“Over the past four years, waterfront projects have appreciated maybe two, or even three, times the value of inland projects,” said Firas Al Msaddi, chief executive of Fam Properties.
“Buyers realised this, and this cemented narratives in their minds. Developers said 'if that's the case, we should try our best to go into waterfront projects to create additional coastline, to create newly reclaimed islands'. The success and appreciation witnessed in the Palm Jumeirah is unprecedented if you look at the trend of prices and capital gains.”
Mr Al Msaddi cited a Frond F beachfront villa in Palm Jumeirah that sold for Dh4.6 million in 2008, and has since been resold nine times. The last sale was in January 2024, when the villa sold for Dh128 million, earning a capital gain of 2,650 per cent. It illustrates the demand for beachside luxury villas, and why there is a clamour to build more coastline on which to create even more wealth.
“This is a completely new era in Dubai, something we have not witnessed before,” said Mr Al Msaddi. “With the infrastructure, regulations and global positioning, Dubai is in a completely different space to 10 years ago, with the luxury segment dominating the coastline.
“It's more cemented than ever because the money is in, so all these millionaires and billionaires who have actually invested in Dubai won't be able to sell to an average individual. If they want to exit the market, they will only be able sell to people with equal wealth.”
Reclaimed land
According to research by UAE University, an additional 119 square kilometres of land was reclaimed in the UAE from 2000 to 2021. In Abu Dhabi, 35 square kilometres was reclaimed, while Dubai reclaimed 68 square kilometres – more than 70 per cent of the total land reclaimed in the UAE.
Sunrise Capital, a company involved in a high-end project on Pearl Jumeirah, is due to hand over developments before the end of the year. Its chief executive, Yogesh Bulchandani, said unique factors were driving Dubai’s coastal property market towards unprecedented levels.
“Until a couple of years ago, the market was not ready to accept these extravagant products. Today the market, consumer force and inflow of people in Dubai all lead to a very special sauce. That special sauce is people willing to accept these products at the price point, and developers also that are willing to offload them,” he said.
“Developing a project like this wasn't as difficult as I assumed it might be, definitely not when compared to the Palm Jumeirah, the World or Dubai Islands. The more developments that occur on these islands, the more we learn and the easier it is to build.”
The Pearl’s sold-out Nikki Beach development will include apartments ranging from one to four bedrooms, town houses and a Miami-style beach club resort. Originally known as East Bay, as part of the Jumeirah Garden City Project, the island development was launched in 2008. Since then, it has seen plans for high-rise developments scrapped in favour of more low-density buildings to meet the soaring demand for coastal villas.
Dredging
Ten million square metres of dredging and reclamation is reported to been involved in building the Pearl, using 1.6 million tonnes of rock for the final construction. The techniques were similar to those used to create other man-made islands along Dubai’s coastline.
Head north from Dubai towards the Northern Emirates, and the pace of change is familiar. In Umm Al Quwain, Siniya Islands promises an elite yacht club and helicopter taxi services with 196 villas on sale from $2.6 million, alongside 550 apartments.
Francis Alfred, managing director of Sobha Realty, which is behind Siniya Island, claims the development will “set a new benchmark” in luxury living. The development will be built in the heart of mangroves, seagrass plantations, mudflats and salt marshes of ecological importance. This has put the development under scrutiny to ensure Umm Al Quwain’s delicate ecosystem is protected.
To mitigate the disruption, the Ministry of Climate Change and Environment has already installed several artificial reefs off Umm Al Quwain, with the aim of creating an environment that promotes marine biodiversity.
Since 2014, more than 4,331 artificial reefs have been installed in the UAE to allay environmental construction damage and boost fish stocks. While Siniya Islands utilise existing land for development, more reclaimed islands have been constructed nearby.
In Ras Al Khaimah, the man-made Marjan Island has already pushed up property prices. Interest in the four coral-shaped islands in a man-made archipelago in Al Hamra has soared since the announcement that the UAE’s first casino will open on the island. Wynn Resorts plans to operate the Dh14 billion gaming facility from 2027.
To build the islands themselves, a construction technique called vibro-compaction stabilises sand and gravel, to ensure it does not shift with the tide. Huge amounts of sea sand is dredged and deposited along the coastline and the islands are shaped by cutter suction dredgers using satellite imagery.
Sand is then deposited into the water from cannons on board hopper suction dredger vessels, building up land mass for development.
The World Islands, an archipelago of 260 islands 4km off Jumeirah Beach, required 386 million tonnes of rock to construct. Its development began in 2003 as one of Dubai’s most ambitious projects. More than 20 years later, only a handful of islands have been commercially developed.
Conservation techniques
Ramjee Iyer, managing director of Acube Developments, which has experience in offshore marine construction, said coastal protection is essential to ensure the islands are safeguarded from erosion and other marine issues.
“Techniques have evolved significantly since the Palm Jumeirah was built 20 years ago, with a strong focus on sustainable and environmentally-friendly practices,” Mr Iyer said. “Advanced technologies like 3D printing are now used in design and architecture, enhancing precision and efficiency.
“Sustainable materials and construction methods are prioritised to minimise environmental impact. Projects today often include extensive environmental assessments to ensure that development is as eco-friendly as possible.”
To ensure the longevity and durability of man-made islands, several measures must be in place, Mr Iyer said. “The deterioration of structures can often be attributed to factors such as erosion, climate change, and maintenance challenges,” he said. “Utilising high-quality materials and state-of-the-art construction techniques can significantly enhance the resilience of these structures against environmental wear and tear.
“Regular maintenance is also essential. Without consistent upkeep, even the most robustly constructed islands can succumb to deterioration.”
Watch: Inside Dubai Harbour's huge expansion plan
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
Terror attacks in Paris, November 13, 2015
- At 9.16pm, three suicide attackers killed one person outside the Atade de France during a foootball match between France and Germany
- At 9.25pm, three attackers opened fire on restaurants and cafes over 20 minutes, killing 39 people
- Shortly after 9.40pm, three other attackers launched a three-hour raid on the Bataclan, in which 1,500 people had gathered to watch a rock concert. In total, 90 people were killed
- Salah Abdeslam, the only survivor of the terrorists, did not directly participate in the attacks, thought to be due to a technical glitch in his suicide vest
- He fled to Belgium and was involved in attacks on Brussels in March 2016. He is serving a life sentence in France
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
On sale: Now
Price: From Dh590,000
What is tokenisation?
Tokenisation refers to the issuance of a blockchain token, which represents a virtually tradable real, tangible asset. A tokenised asset is easily transferable, offers good liquidity, returns and is easily traded on the secondary markets.
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Zayed Sustainability Prize
Dubai works towards better air quality by 2021
Dubai is on a mission to record good air quality for 90 per cent of the year – up from 86 per cent annually today – by 2021.
The municipality plans to have seven mobile air-monitoring stations by 2020 to capture more accurate data in hourly and daily trends of pollution.
These will be on the Palm Jumeirah, Al Qusais, Muhaisnah, Rashidiyah, Al Wasl, Al Quoz and Dubai Investment Park.
“It will allow real-time responding for emergency cases,” said Khaldoon Al Daraji, first environment safety officer at the municipality.
“We’re in a good position except for the cases that are out of our hands, such as sandstorms.
“Sandstorms are our main concern because the UAE is just a receiver.
“The hotspots are Iran, Saudi Arabia and southern Iraq, but we’re working hard with the region to reduce the cycle of sandstorm generation.”
Mr Al Daraji said monitoring as it stood covered 47 per cent of Dubai.
There are 12 fixed stations in the emirate, but Dubai also receives information from monitors belonging to other entities.
“There are 25 stations in total,” Mr Al Daraji said.
“We added new technology and equipment used for the first time for the detection of heavy metals.
“A hundred parameters can be detected but we want to expand it to make sure that the data captured can allow a baseline study in some areas to ensure they are well positioned.”
Our legal columnist
Name: Yousef Al Bahar
Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994
Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
BUNDESLIGA FIXTURES
Saturday, May 16 (kick-offs UAE time)
Borussia Dortmund v Schalke (4.30pm)
RB Leipzig v Freiburg (4.30pm)
Hoffenheim v Hertha Berlin (4.30pm)
Fortuna Dusseldorf v Paderborn (4.30pm)
Augsburg v Wolfsburg (4.30pm)
Eintracht Frankfurt v Borussia Monchengladbach (7.30pm)
Sunday, May 17
Cologne v Mainz (4.30pm),
Union Berlin v Bayern Munich (7pm)
Monday, May 18
Werder Bremen v Bayer Leverkusen (9.30pm)
Analysis
Members of Syria's Alawite minority community face threat in their heartland after one of the deadliest days in country’s recent history. Read more
'Midnights'
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White hydrogen: Naturally occurring hydrogen
Chromite: Hard, metallic mineral containing iron oxide and chromium oxide
Ultramafic rocks: Dark-coloured rocks rich in magnesium or iron with very low silica content
Ophiolite: A section of the earth’s crust, which is oceanic in nature that has since been uplifted and exposed on land
Olivine: A commonly occurring magnesium iron silicate mineral that derives its name for its olive-green yellow-green colour
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
The specs: Fenyr SuperSport
Price, base: Dh5.1 million
Engine: 3.8-litre twin-turbo flat-six
Transmission: Seven-speed automatic
Power: 800hp @ 7,100pm
Torque: 980Nm @ 4,000rpm
Fuel economy, combined: 13.5L / 100km
ESSENTIALS
The flights
Emirates, Etihad and Swiss fly direct from the UAE to Zurich from Dh2,855 return, including taxes.
The chalet
Chalet N is currently open in winter only, between now and April 21. During the ski season, starting on December 11, a week’s rental costs from €210,000 (Dh898,431) per week for the whole property, which has 22 beds in total, across six suites, three double rooms and a children’s suite. The price includes all scheduled meals, a week’s ski pass, Wi-Fi, parking, transfers between Munich, Innsbruck or Zurich airports and one 50-minute massage per person. Private ski lessons cost from €360 (Dh1,541) per day. Halal food is available on request.
Profile of Udrive
Date started: March 2016
Founder: Hasib Khan
Based: Dubai
Employees: 40
Amount raised (to date): $3.25m – $750,000 seed funding in 2017 and a Seed round of $2.5m last year. Raised $1.3m from Eureeca investors in January 2021 as part of a Series A round with a $5m target.
Who is Allegra Stratton?
- Previously worked at The Guardian, BBC’s Newsnight programme and ITV News
- Took up a public relations role for Chancellor Rishi Sunak in April 2020
- In October 2020 she was hired to lead No 10’s planned daily televised press briefings
- The idea was later scrapped and she was appointed spokeswoman for Cop26
- Ms Stratton, 41, is married to James Forsyth, the political editor of The Spectator
- She has strong connections to the Conservative establishment
- Mr Sunak served as best man at her 2011 wedding to Mr Forsyth
if you go
The flights
Etihad, Emirates and Singapore Airlines fly direct from the UAE to Singapore from Dh2,265 return including taxes. The flight takes about 7 hours.
The hotel
Rooms at the M Social Singapore cost from SG $179 (Dh488) per night including taxes.
The tour
Makan Makan Walking group tours costs from SG $90 (Dh245) per person for about three hours. Tailor-made tours can be arranged. For details go to www.woknstroll.com.sg
Neil Thomson – THE BIO
Family: I am happily married to my wife Liz and we have two children together.
Favourite music: Rock music. I started at a young age due to my father’s influence. He played in an Indian rock band The Flintstones who were once asked by Apple Records to fly over to England to perform there.
Favourite book: I constantly find myself reading The Bible.
Favourite film: The Greatest Showman.
Favourite holiday destination: I love visiting Melbourne as I have family there and it’s a wonderful place. New York at Christmas is also magical.
Favourite food: I went to boarding school so I like any cuisine really.
Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
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Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
The 12 Syrian entities delisted by UK
Ministry of Interior
Ministry of Defence
General Intelligence Directorate
Air Force Intelligence Agency
Political Security Directorate
Syrian National Security Bureau
Military Intelligence Directorate
Army Supply Bureau
General Organisation of Radio and TV
Al Watan newspaper
Cham Press TV
Sama TV
Race%20card
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