The global financial crisis has left some mouth-watering property opportunities in its wake.
Some European and North American residential markets are predicted to grow, with potentially lucrative deals also to be made in the commercial sector.
The current era of international property investment will be dominated by a new conservatism, in contrast to much of the over-adventurous property investment made prior to the global financial crisis.
According to Andrew Hawkins, head of international property at international estate agent Chesterton Humberts: "What we are seeing following the financial crisis is a flight to quality, with investors now focusing on certain locations."
Chesterton Humberts reports there is a growing interest in locations such as France, Spain and Switzerland on the part of international investors, with some locations having particular appeal to Middle Eastern investors.
"At the moment, you generally find that investors are looking for safe, mature markets such as the French Alps and Switzerland.
"People should also look at Spain," says Mr Hawkins.
He believes that, although residential values have fallen 15 per cent to 25 per cent following the financial crisis, this region of France is set for recovery and should prove appealing for investors.
The French Alps stretch across the Rhône-Alpes and Provence-Alpes- Côte d'Azur (PACA) regions.
Chesterton Humberts says average new housing prices fell in both 2008 and 2009 in Rhône-Alpes by a total of 5.9 per cent, but in the first half of 2010 posted a recovery of 4.9 per cent. New apartments, having seen prices fall by 4.4 per cent in 2008, recovered in 2009 to record 5 per cent growth, although this rate has slowed to 0.5 per cent in the first half of 2010.
The new-home market in PACA saw average house prices rising a total of 18.3 per cent over the last three years and apartment prices rising by 6.2 per cent (despite a 1 per cent drop in 2009).
Mr Hawkins believes that a contributing factor is that the quality of French winter holiday accommodations has improved considerably over the past three decades, due largely to its large-scale resorts.
Paradiski in Savoie, which comprises the sub-resorts of Les Arcs, Peisey Villandray and La Plagne, offers 425 kilometres of pistes. Combined with Les Trois Vallées (eight sub-resorts including the prestigious Courchevel), it is the largest ski area in the world connected solely by lifts. There are also resorts based on traditional villages which offer more character (for example, Chamonix, which was site of the first winter Olympics in 1924) as do a number of the newer resorts which have been developed, such as Valmorel, La Rosière and La Tania.
Mr Hawkins believes that the Spanish island of Majorca is a location likely to prove increasingly popular with Middle Eastern investors. "After a rough couple of years, Majorca is looking interesting again to international investors from countries such as Switzerland, Germany and Scandinavia."
He recommends that investors in the island's residential sector try and buy within one to one-and-a-half kilometres from the airport and near to the coast, preferably with a sea view. According to Chesterton Humberts, the south-west part of the island is particularly popular with Middle Eastern buyers.
But Mr Hawkins also believes that the highly regulated market of Switzerland offers Middle Eastern investors an interesting long-term opportunity. House prices in that nation have bucked the global trend. The single-family homes index rose 5.3 per cent during the year to January 2009 (4.5 per cent in real terms), while the owner-occupied apartment index increased 5.6 per cent (4.8 per cent in real terms) over the same period, according to the Swiss National Bank.
"Switzerland's position at the geographical centre of Europe and renowned high standards of living make it a sought-after regional base. Buying in Switzerland is a long-term investment - it has a very stable economy, low interest rates and the property market growth is steady. In the current economic climate, many investors are looking to Switzerland as a veritable 'port in a storm'," says Mr Hawkins.
The highly regulated Swiss market places many restrictions on foreign ownership of residential properties. While there are signs that this attitude may be starting to thaw, certain limits still apply to foreign nationals who wish to purchase land or property as set out in the Swiss Federal Law on the Acquisition of Property by Persons Resident Abroad ( generally referred to as "the Lex Koller").
In accordance with the Lex Koller, a maximum of 1,500 units may be sold to non-residents nationally every year. Ownership of property does not automatically entitle a foreign national to a residence permit. Non-resident foreigners may be authorised to purchase a holiday home or investment property in places designated as holiday resorts within 16 cantons, which may be rented out only to a limited extent. The net living area must not exceed 200 square metres. But, according to Chesterton Humberts, the future of the Lex Koller is uncertain. In July 2007, the federal government announced it would cease to apply after 2010, and that each canton would have responsibility for its own foreign property acquisition laws. While a replacement system acceptable to the federal government is being decided, the current ruling remains in place.
It is this tight control on new development which has helped Swiss residential property prices resist any major downturn.
Chesterton Humberts reports that Germans are the dominant foreign ownership category, accounting for nearly 30 per cent of total property transfers to foreign residents between 1996 and 2008, followed by Italy with 16 per cent and the UK with 13 per cent. At a regional level, Lake Geneva has shown the strongest aggregate performance during the last decade, with owner-occupied apartments more than doubling in value. Single family homes almost doubled during this time as well.
The increasing investor focus on European property is thought to be in part a reaction to over-confidence in rapidly developing regions that often have poorly regulated markets. "A number of Asian markets, notably China, which bounced back surprisingly quickly last year thanks in no small measure to government stimulus packages, have seen the introduction of government measures to dampen growth rates regarded as potentially harmful to the wider economy," says Mr Hawkins.
Estate agents say that the ongoing financial crisis gives buyers more power to negotiate prices in many markets.
However, where the vendor is under no pressure to sell, then the gap between buyer and seller expectations may not be bridged.
And the flurry of forced sales expected by some market watchers has so far failed to materialise in prime residential locations.
But the more destructive effects of the financial crisis on the international commercial property markets are yielding attractive opportunities for wealthier private investors. According to Hans Vrensen, global head of research at global property adviser DTZ, opportunities arise when loan repayments on commercial properties fall due and the owners find themselves holding negative equity - property assets worth less than the cash loaned against them.
This is taking place as banks seek to reduce their exposure to commercial property. Some ex-bankers, however, have become fund managers who are largely focused on this opportunity.
Private "angel" investors with no current exposure to the recently over-heated European property market are well positioned to emerge with the whip hand if they can invest in buildings with original owners who want to avoid what property agents call a "full cash trap" - holding an asset that only maintains itself with no net profit.
"Some Middle Eastern investors will find some opportunities where banks are looking for new equity injection," says Mr Vrensen.
Although some US office markets are faring well, commercial property loan agreements there typically run for 10 years, much longer than is generally the case in Europe. This means that US developers and property owners are less likely to find themselves in negative equity, as 10 years more closely mirrors the cycle in property values and market fluctuations tend to correct themselves within a decade.
As always, with any property investment, the trick with commercial property is to invest in the right location at the right time.
According to DTZ, Warsaw, London's west end and Madrid are classified as "hot".
"Markets like Warsaw are looking increasingly attractive.
"The city has emerged from the financial crisis well and the Warsaw office market has been a beneficiary of the robustness of the Polish economy and also the fact that much of the growth has been funded by Germany and Austria," says Mr Vrensen.
But whatever sector or location investors may choose for their money, it is essential that they take a long-term view of markets that may still prove to be volatile in the short term.
pf@thenational.ae
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
The rules on fostering in the UAE
A foster couple or family must:
- be Muslim, Emirati and be residing in the UAE
- not be younger than 25 years old
- not have been convicted of offences or crimes involving moral turpitude
- be free of infectious diseases or psychological and mental disorders
- have the ability to support its members and the foster child financially
- undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
- A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
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Dr Afridi's warning signs of digital addiction
Spending an excessive amount of time on the phone.
Neglecting personal, social, or academic responsibilities.
Losing interest in other activities or hobbies that were once enjoyed.
Having withdrawal symptoms like feeling anxious, restless, or upset when the technology is not available.
Experiencing sleep disturbances or changes in sleep patterns.
What are the guidelines?
Under 18 months: Avoid screen time altogether, except for video chatting with family.
Aged 18-24 months: If screens are introduced, it should be high-quality content watched with a caregiver to help the child understand what they are seeing.
Aged 2-5 years: Limit to one-hour per day of high-quality programming, with co-viewing whenever possible.
Aged 6-12 years: Set consistent limits on screen time to ensure it does not interfere with sleep, physical activity, or social interactions.
Teenagers: Encourage a balanced approach – screens should not replace sleep, exercise, or face-to-face socialisation.
Source: American Paediatric Association
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10 tips for entry-level job seekers
- Have an up-to-date, professional LinkedIn profile. If you don’t have a LinkedIn account, set one up today. Avoid poor-quality profile pictures with distracting backgrounds. Include a professional summary and begin to grow your network.
- Keep track of the job trends in your sector through the news. Apply for job alerts at your dream organisations and the types of jobs you want – LinkedIn uses AI to share similar relevant jobs based on your selections.
- Double check that you’ve highlighted relevant skills on your resume and LinkedIn profile.
- For most entry-level jobs, your resume will first be filtered by an applicant tracking system for keywords. Look closely at the description of the job you are applying for and mirror the language as much as possible (while being honest and accurate about your skills and experience).
- Keep your CV professional and in a simple format – make sure you tailor your cover letter and application to the company and role.
- Go online and look for details on job specifications for your target position. Make a list of skills required and set yourself some learning goals to tick off all the necessary skills one by one.
- Don’t be afraid to reach outside your immediate friends and family to other acquaintances and let them know you are looking for new opportunities.
- Make sure you’ve set your LinkedIn profile to signal that you are “open to opportunities”. Also be sure to use LinkedIn to search for people who are still actively hiring by searching for those that have the headline “I’m hiring” or “We’re hiring” in their profile.
- Prepare for online interviews using mock interview tools. Even before landing interviews, it can be useful to start practising.
- Be professional and patient. Always be professional with whoever you are interacting with throughout your search process, this will be remembered. You need to be patient, dedicated and not give up on your search. Candidates need to make sure they are following up appropriately for roles they have applied.
Arda Atalay, head of Mena private sector at LinkedIn Talent Solutions, Rudy Bier, managing partner of Kinetic Business Solutions and Ben Kinerman Daltrey, co-founder of KinFitz
Company%20Profile
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Attacks on Egypt’s long rooted Copts
Egypt’s Copts belong to one of the world’s oldest Christian communities, with Mark the Evangelist credited with founding their church around 300 AD. Orthodox Christians account for the overwhelming majority of Christians in Egypt, with the rest mainly made up of Greek Orthodox, Catholics and Anglicans.
The community accounts for some 10 per cent of Egypt’s 100 million people, with the largest concentrations of Christians found in Cairo, Alexandria and the provinces of Minya and Assiut south of Cairo.
Egypt’s Christians have had a somewhat turbulent history in the Muslim majority Arab nation, with the community occasionally suffering outright persecution but generally living in peace with their Muslim compatriots. But radical Muslims who have first emerged in the 1970s have whipped up anti-Christian sentiments, something that has, in turn, led to an upsurge in attacks against their places of worship, church-linked facilities as well as their businesses and homes.
More recently, ISIS has vowed to go after the Christians, claiming responsibility for a series of attacks against churches packed with worshippers starting December 2016.
The discrimination many Christians complain about and the shift towards religious conservatism by many Egyptian Muslims over the last 50 years have forced hundreds of thousands of Christians to migrate, starting new lives in growing communities in places as far afield as Australia, Canada and the United States.
Here is a look at major attacks against Egypt's Coptic Christians in recent years:
November 2: Masked gunmen riding pickup trucks opened fire on three buses carrying pilgrims to the remote desert monastery of St. Samuel the Confessor south of Cairo, killing 7 and wounding about 20. IS claimed responsibility for the attack.
May 26, 2017: Masked militants riding in three all-terrain cars open fire on a bus carrying pilgrims on their way to the Monastery of St. Samuel the Confessor, killing 29 and wounding 22. ISIS claimed responsibility for the attack.
April 2017: Twin attacks by suicide bombers hit churches in the coastal city of Alexandria and the Nile Delta city of Tanta. At least 43 people are killed and scores of worshippers injured in the Palm Sunday attack, which narrowly missed a ceremony presided over by Pope Tawadros II, spiritual leader of Egypt Orthodox Copts, in Alexandria's St. Mark's Cathedral. ISIS claimed responsibility for the attacks.
February 2017: Hundreds of Egyptian Christians flee their homes in the northern part of the Sinai Peninsula, fearing attacks by ISIS. The group's North Sinai affiliate had killed at least seven Coptic Christians in the restive peninsula in less than a month.
December 2016: A bombing at a chapel adjacent to Egypt's main Coptic Christian cathedral in Cairo kills 30 people and wounds dozens during Sunday Mass in one of the deadliest attacks carried out against the religious minority in recent memory. ISIS claimed responsibility.
July 2016: Pope Tawadros II says that since 2013 there were 37 sectarian attacks on Christians in Egypt, nearly one incident a month. A Muslim mob stabs to death a 27-year-old Coptic Christian man, Fam Khalaf, in the central city of Minya over a personal feud.
May 2016: A Muslim mob ransacks and torches seven Christian homes in Minya after rumours spread that a Christian man had an affair with a Muslim woman. The elderly mother of the Christian man was stripped naked and dragged through a street by the mob.
New Year's Eve 2011: A bomb explodes in a Coptic Christian church in Alexandria as worshippers leave after a midnight mass, killing more than 20 people.
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 specs: 2018 BMW X2 and X3
Price, as tested: Dh255,150 (X2); Dh383,250 (X3)
Engine: 2.0-litre turbocharged inline four-cylinder (X2); 3.0-litre twin-turbo inline six-cylinder (X3)
Power 192hp @ 5,000rpm (X2); 355hp @ 5,500rpm (X3)
Torque: 280Nm @ 1,350rpm (X2); 500Nm @ 1,520rpm (X3)
Transmission: Seven-speed automatic (X2); Eight-speed automatic (X3)
Fuel consumption, combined: 5.7L / 100km (X2); 8.3L / 100km (X3)
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
Name: Brendalle Belaza
From: Crossing Rubber, Philippines
Arrived in the UAE: 2007
Favourite place in Abu Dhabi: NYUAD campus
Favourite photography style: Street photography
Favourite book: Harry Potter
Milestones on the road to union
1970
October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar.
December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.
1971
March 1: Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.
July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.
July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.
August 6: The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.
August 15: Bahrain becomes independent.
September 3: Qatar becomes independent.
November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.
November 29: At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.
November 30: Despite a power sharing agreement, Tehran takes full control of Abu Musa.
November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties
December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.
December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.
December 9: UAE joins the United Nations.
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
Ashes 2019 schedule
August 1-5: First Test, Edgbaston
August 14-18: Second Test, Lord's
August 22-26: Third Test, Headingley
September 4-8: Fourth Test, Old Trafford
September 12-16: Fifth Test, Oval
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