Clarification on government efforts to stabilise the housing market



The report in The National titled Property law gives landlords power to evict tenants and raise rents (March 11) has created the incorrect notion that a new property law has been adopted that would effectively put an end to price control protections within the emirate of Abu Dhabi. The reality of the situation is that the law Leasing of Places and the Organisation of the Landlord and Tenant Relationships No (20) of 2006 as amended by Law No (6) of 2009 was amended by Law No (4) of 2010 on February 10, 2010 to transfer control and oversight of the current rental dispute resolution mechanism from the Executive Council, where it previously sat, to the Judiciary.

The impetus for this change was the realisation that judicial authorities possessed both a more appropriate skill set and the necessary bandwidth to improve the effectiveness of the dispute resolution mechanism, which was first created by the law. This change does not have any impact on either the price control or protection rights afforded by the law. To be completely accurate, it should be noted that both of the above provisions would have expired on November 1, 2009, but were extended via the issuance of a resolution by the Executive Council on November 8, 2009.

The effect of this resolution was to extend these provisions until November 1, 2010. As such, the current cap on increases in rental rates, as well as the right of tenants to renew their leases, remains unchanged. The main reason for these amendments was to allow the Government to better evaluate the effectiveness of the current system of controls, with the intent to revisit the topic at the end of 2010. In the intervening period, the Chairman of the Executive Council, His Highness Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, has ordered the formation of a specialised ad hoc committee with representation from economic, zoning and planning bodies within the government.

This committee has further retained the services of an internationally recognised real estate consultancy to assist in reviewing the current state of the real estate market and providing the government with a detailed and methodologically sound analysis and possible set of recommendations regarding future actions to ensure the sustainable growth of the real estate sector within the emirate. The Abu Dhabi Government fully appreciates the impact that imbalances within the real estate sector can have on the overall health of the local economy, as well as on individual households.

When supply is too short, spiralling prices can unleash destructive inflationary pressures, and when prices are too low, investment dries up and new supply fails to enter the market, which can paradoxically lead to future price spikes. In adopting and later extending the current price control and protection rights for tenants, which can be further renewed through a resolution of His Highness the Chairman of the Executive Council, the Government is seeking to address a temporary imbalance brought on by unexpectedly high oil prices and economic expansion which had the potential to unleash harmful macroeconomic instability within the local economy.

In moving forward, tenants and landlords should feel assured that the Government will continue to seek to create an outcome that is balanced in terms of protecting the interests of both consumers and suppliers within the real estate sector, with an ultimate objective of achieving a degree of market equilibrium that will obviate the need for government intervention. Dr Ahmed Al Mazrouei is the Deputy Secretary General of the Abu Dhabi Executive Council and Chairman of the Ad Hoc Committee on Rent Controls

COMPANY PROFILE
Name: ARDH Collective
Based: Dubai
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Sector: Sustainability
Total funding: Self funded
Number of employees: 4
Top%2010%20most%20competitive%20economies
%3Cp%3E1.%20Singapore%0D%3Cbr%3E2.%20Switzerland%0D%3Cbr%3E3.%20Denmark%0D%3Cbr%3E4.%20Ireland%0D%3Cbr%3E5.%20Hong%20Kong%0D%3Cbr%3E6.%20Sweden%0D%3Cbr%3E7.%20UAE%0D%3Cbr%3E8.%20Taiwan%0D%3Cbr%3E9.%20Netherlands%0D%3Cbr%3E10.%20Norway%0D%3Cbr%3E%3C%2Fp%3E%0A
Scoreline

Chelsea 1
Azpilicueta (36')

West Ham United 1
Hernandez (73')

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The%20specs
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The Melbourne Mercer Global Pension Index

The Melbourne Mercer Global Pension Index

Mazen Abukhater, principal and actuary at global consultancy Mercer, Middle East, says the company’s Melbourne Mercer Global Pension Index - which benchmarks 34 pension schemes across the globe to assess their adequacy, sustainability and integrity - included Saudi Arabia for the first time this year to offer a glimpse into the region.

The index highlighted fundamental issues for all 34 countries, such as a rapid ageing population and a low growth / low interest environment putting pressure on expected returns. It also highlighted the increasing popularity around the world of defined contribution schemes.

“Average life expectancy has been increasing by about three years every 10 years. Someone born in 1947 is expected to live until 85 whereas someone born in 2007 is expected to live to 103,” Mr Abukhater told the Mena Pensions Conference.

“Are our systems equipped to handle these kind of life expectancies in the future? If so many people retire at 60, they are going to be in retirement for 43 years – so we need to adapt our retirement age to our changing life expectancy.”

Saudi Arabia came in the middle of Mercer’s ranking with a score of 58.9. The report said the country's index could be raised by improving the minimum level of support for the poorest aged individuals and increasing the labour force participation rate at older ages as life expectancies rise.

Mr Abukhater said the challenges of an ageing population, increased life expectancy and some individuals relying solely on their government for financial support in their retirement years will put the system under strain.

“To relieve that pressure, governments need to consider whether it is time to switch to a defined contribution scheme so that individuals can supplement their own future with the help of government support,” he said.

The%20specs
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The Disaster Artist

Director: James Franco

Starring: James Franco, Dave Franco, Seth Rogan

Four stars

Joker: Folie a Deux

Starring: Joaquin Phoenix, Lady Gaga, Brendan Gleeson

Director: Todd Phillips 

Rating: 2/5

SPEC%20SHEET%3A%20APPLE%20M3%20MACBOOK%20AIR%20(13%22)
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Company%20Profile
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Tree of Hell

Starring: Raed Zeno, Hadi Awada, Dr Mohammad Abdalla

Director: Raed Zeno

Rating: 4/5

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
Thank You for Banking with Us

Director: Laila Abbas

Starring: Yasmine Al Massri, Clara Khoury, Kamel El Basha, Ashraf Barhoum

Rating: 4/5

SERIE A FIXTURES

Saturday Spezia v Lazio (6pm), Juventus v Torino (9pm), Inter Milan v Bologna (7.45pm)

Sunday Verona v Cagliari (3.30pm), Parma v Benevento, AS Roma v Sassuolo, Udinese v Atalanta (all 6pm), Crotone v Napoli (9pm), Sampdoria v AC Milan (11.45pm)

Monday Fiorentina v Genoa (11.45pm)

Jigra
Director: Vasan Bala
Starring: Alia Bhatt, Vedang Raina, Manoj Pahwa, Harsh Singh
Rated: 3.5/5
Greatest of All Time
Starring: Vijay, Sneha, Prashanth, Prabhu Deva, Mohan
Director: Venkat Prabhu
Rating: 2/5

Know your camel milk:
Flavour: Similar to goat’s milk, although less pungent. Vaguely sweet with a subtle, salty aftertaste.
Texture: Smooth and creamy, with a slightly thinner consistency than cow’s milk.
Use it: In your morning coffee, to add flavour to homemade ice cream and milk-heavy desserts, smoothies, spiced camel-milk hot chocolate.
Goes well with: chocolate and caramel, saffron, cardamom and cloves. Also works well with honey and dates.

About RuPay

A homegrown card payment scheme launched by the National Payments Corporation of India and backed by the Reserve Bank of India, the country’s central bank

RuPay process payments between banks and merchants for purchases made with credit or debit cards

It has grown rapidly in India and competes with global payment network firms like MasterCard and Visa.

In India, it can be used at ATMs, for online payments and variations of the card can be used to pay for bus, metro charges, road toll payments

The name blends two words rupee and payment

Some advantages of the network include lower processing fees and transaction costs

COMPANY%20PROFILE
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Engine: 5.6-litre V8

Transmission: seven-speed automatic

Power: 400hp

Torque: 560Nm

Price: Dh234,000 - Dh329,000

On sale: now


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