The developer of a $5 billion luxury project on Dubai’s World Islands has said the project will be completed by 2026.
The Kleindienst Group, which is behind The Heart of Europe, said the first phase of the project will be completed by the end of this year and will include the handover of almost 50 floating “seahorse” villas.
The entire development includes palaces with private beaches, hundreds of smaller villas and apartments, hotels, as well as floating “seahorse” villas on the six-island cluster, situated four kilometres off the Dubai coast.
The project has been much delayed over the years, not least due to the Covid-19 pandemic.
We had 1,370 guests last Saturday alone. We were almost overwhelmed with the challenge of having so many people on one day on the island
Josef Kleindienst,
Kleindienst Group
However, the man overseeing the project is confident an actual end date is in sight, after the first property on the project, the Cote d'Azur Monaco Hotel, opened to the public at the start of the year.
“We had several challenges that led to delays but thankfully we are through and starting to see openings,” said Josef Kleindienst, chairman of the Kleindienst Group.
“We had the soft opening of our first hotel at the start of the year and we have more than 70 properties currently under construction.
“The first phase of those will be made available to tourists by the end of the year. Everything will be completed by 2026.”
Mr Kleindienst, speaking on the closing day of the Arabian Travel Market, which was held at Dubai World Trade Centre this week, declined to say how much the floating villas were likely to cost.
However, a quick glance on propertyfinder.ae shows the floating seahorse villas on sale for a little less than Dh22 million each.
The project, once completed, will also hold 16 hotels as well as “palaces” with private beach access.
“We have a lot of demand for the floating villas,” he said.
“It’s a unique product and people are always interested in something new.”
He said 48 of the floating villas will be handed over by the end of this year.
So far, the company has sold more than 70 of the floating villas, with most buyers coming from Saudi Arabia, followed by Emiratis and UAE residents, according to Mr Kleindienst.
He was confident the project would prove a success, particularly with the local market.
“It will be popular with people who live here because they can just walk across the street with their luggage and check in,” he said.
“It means you can have that holiday experience without having to go the airport and experiencing the hassle that comes with flying.
“We are the perfect location for a staycation as it will be easy to get away from the city and come here.”
Each of the hotels that will be built on the project will have a different theme, he added, pointing to the party vibe of the recently opened Cote d'Azur Monaco Hotel, which is for adults only.
The project has attracted its fair share of scepticism over the years, with many wondering if it would ever open.
However, Mr Kleindienst said the hotel alone was already attracting huge numbers at weekends, proving there is an appetite.
“We had 1,370 guests last Saturday alone,” he said.
“We were almost overwhelmed with the challenge of having so many people on one day on the island.”
The project has certainly attracted its fair share of attention since it was first announced in 2003, before being handed over to the developers in 2008.
It attracted publicity in 2018 when it was reported that one of the floating villas had sunk into the sea, near the Burj Al Arab.
However, Mr Kleindienst insisted it was an events platform that had fallen into the sea.
The same year saw US actress Lindsay Lohan unveiling plans on Instagram to build a themed resort, Lindsayland, at the World Islands.
The post received more than 20,000 likes before being deleted.
Another jewel in Dubai's crown?
Property experts, however, have said it had the potential to be another jewel in Dubai’s crown.
“Floating villas would bring a unique and luxurious option to Dubai’s property offering,” said Wassim Abdallah, head of off-plan and investments with real estate firm Better Homes.
“Such innovative and exclusive offerings often attract high-net-worth individuals and investors seeking distinctive and prestigious properties.
“There is always high demand for sea facing property in Dubai, whether it’s a villa or an apartment, even more so if it’s located on the island.”
The delays in the project's completion will have an impact, he said, but not necessarily an overly negative one.
“It’s true that delays have slightly reduced the interest of clients in the local market but there was always high demand from international clients,” he said.
“They are amazed by the uniqueness and are prepared to wait in order to be part of it.”
Simon Baker, managing director with Haus & Haus Real Estate, suggested the project would continue to create excitement, but a cautious approach would be wise given the delays involved so far.
“When any innovative or ultra-modern new development launches in Dubai, it causes a ripple of excitement and grabs the interest of global buyers,” he said
“However, from an insider’s point of view it’s always better to wait and see before speculating too much on a long-delayed project.
“There’s always an appetite for island destinations — not just in Dubai but internationally. They offer a sense of exclusivity and well-being that’s hard to beat.”
Key interest was likely to come from markets including Russia, China, India, the UK and throughout Europe, he added.
If you go
Flying
Despite the extreme distance, flying to Fairbanks is relatively simple, requiring just one transfer in Seattle, which can be reached directly from Dubai with Emirates for Dh6,800 return.
Touring
Gondwana Ecotours’ seven-day Polar Bear Adventure starts in Fairbanks in central Alaska before visiting Kaktovik and Utqiarvik on the North Slope. Polar bear viewing is highly likely in Kaktovik, with up to five two-hour boat tours included. Prices start from Dh11,500 per person, with all local flights, meals and accommodation included; gondwanaecotours.com
The specs
Engine: 2-litre 4-cylinder and 3.6-litre 6-cylinder
Power: 220 and 280 horsepower
Torque: 350 and 360Nm
Transmission: eight-speed automatic
Price: from Dh136,521 VAT and Dh166,464 VAT
On sale: now
Married Malala
Malala Yousafzai is enjoying married life, her father said.
The 24-year-old married Pakistan cricket executive Asser Malik last year in a small ceremony in the UK.
Ziauddin Yousafzai told The National his daughter was ‘very happy’ with her husband.
How to vote in the UAE
1) Download your ballot https://www.fvap.gov/
2) Take it to the US Embassy
3) Deadline is October 15
4) The embassy will ensure all ballots reach the US in time for the November 3 poll
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
UAE currency: the story behind the money in your pockets
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.”
THE DEALS
Hamilton $60m x 2 = $120m
Vettel $45m x 2 = $90m
Ricciardo $35m x 2 = $70m
Verstappen $55m x 3 = $165m
Leclerc $20m x 2 = $40m
TOTAL $485m
How to wear a kandura
Dos
- Wear the right fabric for the right season and occasion
- Always ask for the dress code if you don’t know
- Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
- Wear 100 per cent cotton under the kandura as most fabrics are polyester
Don’ts
- Wear hamdania for work, always wear a ghutra and agal
- Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
How it works
1) The liquid nanoclay is a mixture of water and clay that aims to convert desert land to fertile ground
2) Instead of water draining straight through the sand, it apparently helps the soil retain water
3) One application is said to last five years
4) The cost of treatment per hectare (2.4 acres) of desert varies from $7,000 to $10,000 per hectare
Five films to watch
Castle in the Sky (1986)
Grave of the Fireflies (1988)
Only Yesterday (1991)
Pom Poki (1994)
The Tale of Princess Kaguya (2013)
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: 2018 Nissan Altima
Price, base / as tested: Dh78,000 / Dh97,650
Engine: 2.5-litre in-line four-cylinder
Power: 182hp @ 6,000rpm
Torque: 244Nm @ 4,000rpm
Transmission: Continuously variable tranmission
Fuel consumption, combined: 7.6L / 100km
