Sorouh Real Estate, Abu Dhabi's second-largest property developer by market value, remains "extremely confident" about the short-term future of the industry, despite property share prices plummeting across the UAE in recent weeks.
However, that has not stopped it from considering possible impacts that the global credit crunch could have here in the coming months.
"The challenges that the real estate industry is facing in the US are linked to the US subprime policy, and have no relation to Abu Dhabi's strong property fundamentals," said Mounir Haider, the chief executive of Sorouh. "The UAE economy is growing fast. People are coming in droves to work here, but witness the difficulties [they are having] in finding a place to live."
Mr Haider noted that specialists had forecast a shortage of 100,000 housing units in Abu Dhabi in the next decade. "We, as a developer, are very optimistic."
However, he acknowledged the credit crunch could hurt developers in the UAE, and was unsure whether property stocks - which have fallen sharply in recent weeks - have plateaued.
"No company lives in isolation. The credit crunch could definitely have an impact. When we look at the demand in Abu Dhabi we are optimistic, but if we were thinking of investing outside the UAE, we would have to consider these facts as well."
Sorouh has not launched any projects outside the emirates but is said to be studying opportunities in Morocco and Egypt.
As fears of a global recession have intensified, authorities in Dubai have also stepped up their efforts to regulate the property market amid ongoing police investigations into corruption and the ensuing arrests at several banks, mortgage lenders and property companies. These include Dubai Islamic Bank, mortgage provider Tamweel, Dubai developer Deyaar, Sama Dubai and Istithmar World. On Sunday, the investment company Istithmar World, owned by the Government of Dubai, suspended its vice chairman, Adel al Shirawi, and chief financial officer Feras Kalthoum. Both are being held by Dubai Police as part of an investigation into alleged financial wrongdoing at Tamweel.
Tamweel said on Sept 9 that Abdullah Nasser Abdullah, its deputy chief executive, had become the latest senior official drawn into corruption investigations in the emirate, following his arrest.
In a rare statement, the office of Sheikh Mohammed bin Rashid, Vice President of the UAE and Ruler of Dubai, warned last month that there would be "no tolerance" shown to anybody who tried to "exploit his position to make illegal profits".
"In any country when you have rules and an authority in place, it helps," Mr Haider said of corporate transparency.
"And Abu Dhabi is on the right track of implementing those. The executive orders that were issued back in 2006 were the start of a long journey to establish transparency and encourage foreign investment in the sector."
In Dubai, shares of Emaar Properties have fallen almost 50 per cent since the beginning of the year. In Abu Dhabi, Aldar Properties has slumped nearly 40 per cent while Sorouh has fallen almost 36 per cent.
"But we remain very confident that it will rebound because real estate in the UAE provides an added value that will be reflected in the share prices," Mr Haider said.
Sorouh's third quarter profit growth was expected to equal or exceed its second quarter profit rise due to improved sales, he said. The company posted a record net profit of US$167.6 million (Dh616m) in the second quarter, up 39 per cent from the same period last year.
As for buying back shares, an option Emaar mentioned last week but has not yet implemented, Mr Haider said: "This has to be discussed at the board level."
Sorouh would launch the third and final phase of its Dh11 billion Gate Towers on Al Reem Island during the Cityscape property exhibition in Dubai next month, he said, adding that the firm was developing projects worth more than Dh50bn.
The company has raised $1.1bn among UAE banks through a securitisation sukuk in the last few weeks to be used for infrastructure development of its Shams Abu Dhabi and Saraya Abu Dhabi projects.
"We will be providing 7,000 to 10,000 units during the next three to five years," Mr Haider said. "Our first project delivery will be Golf Gardens Phase 1, by the end of this year, with nearly 400 villas."
ngillet@thenational.ae
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
Test
Director: S Sashikanth
Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan
Star rating: 2/5
2025 Fifa Club World Cup groups
Group A: Palmeiras, Porto, Al Ahly, Inter Miami.
Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.
Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.
Group D: Flamengo, ES Tunis, Chelsea, (Leon banned).
Group E: River Plate, Urawa, Monterrey, Inter Milan.
Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.
Group G: Manchester City, Wydad, Al Ain, Juventus.
Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.
RESULTS
1.30pm Handicap (PA) Dh 50,000 (Dirt) 1,400m
Winner AF Almomayaz, Hugo Lebouc (jockey), Ali Rashid Al Raihe (trainer)
2pm Handicap (TB) Dh 84,000 (D) 1,400m
Winner Karaginsky, Tadhg O’Shea, Satish Seemar.
2.30pm Maiden (TB) Dh 60,000 (D) 1,200m
Winner Sadeedd, Ryan Curatolo, Nicholas Bachalard.
3pm Conditions (TB) Dh 100,000 (D) 1,950m
Winner Blue Sovereign, Clement Lecoeuvre, Erwan Charpy.
3.30pm Handicap (TB) Dh 76,000 (D) 1,800m
Winner Tailor’s Row, Royston Ffrench, Salem bin Ghadayer.
4pm Maiden (TB) Dh 60,000 (D) 1,600m
Winner Bladesmith, Tadhg O’Shea, Satish Seemar.
4.30pm Handicap (TB) Dh 68,000 (D) 1,000m
Winner Shanaghai City, Fabrice Veron, Rashed Bouresly.
The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
Power: 420hp
Torque: 623Nm
Transmission: 10-speed automatic
Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)
On sale: Now
Teenage%20Mutant%20Ninja%20Turtles%3A%20Shredder's%20Revenge
%3Cp%3E%3Cstrong%3EDeveloper%3A%20%3C%2Fstrong%3ETribute%20Games%3Cbr%3E%3Cstrong%3EPublisher%3A%3C%2Fstrong%3E%20Dotemu%3Cbr%3E%3Cstrong%3EConsoles%3A%20%3C%2Fstrong%3ENintendo%20Switch%2C%20PlayStation%204%26amp%3B5%2C%20PC%20and%20Xbox%20One%3Cbr%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%3C%2Fp%3E%0A
COMPANY PROFILE
Name: Akeed
Based: Muscat
Launch year: 2018
Number of employees: 40
Sector: Online food delivery
Funding: Raised $3.2m since inception
The smuggler
Eldarir had arrived at JFK in January 2020 with three suitcases, containing goods he valued at $300, when he was directed to a search area.
Officers found 41 gold artefacts among the bags, including amulets from a funerary set which prepared the deceased for the afterlife.
Also found was a cartouche of a Ptolemaic king on a relief that was originally part of a royal building or temple.
The largest single group of items found in Eldarir’s cases were 400 shabtis, or figurines.
Khouli conviction
Khouli smuggled items into the US by making false declarations to customs about the country of origin and value of the items.
According to Immigration and Customs Enforcement, he provided “false provenances which stated that [two] Egyptian antiquities were part of a collection assembled by Khouli's father in Israel in the 1960s” when in fact “Khouli acquired the Egyptian antiquities from other dealers”.
He was sentenced to one year of probation, six months of home confinement and 200 hours of community service in 2012 after admitting buying and smuggling Egyptian antiquities, including coffins, funerary boats and limestone figures.
For sale
A number of other items said to come from the collection of Ezeldeen Taha Eldarir are currently or recently for sale.
Their provenance is described in near identical terms as the British Museum shabti: bought from Salahaddin Sirmali, "authenticated and appraised" by Hossen Rashed, then imported to the US in 1948.
- An Egyptian Mummy mask dating from 700BC-30BC, is on offer for £11,807 ($15,275) online by a seller in Mexico
- A coffin lid dating back to 664BC-332BC was offered for sale by a Colorado-based art dealer, with a starting price of $65,000
- A shabti that was on sale through a Chicago-based coin dealer, dating from 1567BC-1085BC, is up for $1,950
Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request
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
The specs
Engine: 2.0-litre 4-cylturbo
Transmission: seven-speed DSG automatic
Power: 242bhp
Torque: 370Nm
Price: Dh136,814
Company%20Profile
%3Cp%3E%3Cstrong%3ECompany%3A%3C%2Fstrong%3E%20Astra%20Tech%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3EMarch%202022%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3EDubai%3Cbr%3E%3Cstrong%3EFounder%3A%20%3C%2Fstrong%3EAbdallah%20Abu%20Sheikh%3Cbr%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20technology%20investment%20and%20development%3Cbr%3E%3Cstrong%3EFunding%20size%3A%3C%2Fstrong%3E%20%24500m%3C%2Fp%3E%0A
The specs
Engine: Long-range single or dual motor with 200kW or 400kW battery
Transmission: Single-speed automatic
Max touring range: 620km / 590km
Price: From Dh250,000 (estimated)
How to help
Donate towards food and a flight by transferring money to this registered charity's account.
Account name: Dar Al Ber Society
Account Number: 11 530 734
IBAN: AE 9805 000 000 000 11 530 734
Bank Name: Abu Dhabi Islamic Bank
To ensure that your contribution reaches these people, please send the copy of deposit/transfer receipt to: juhi.khan@daralber.ae
'How To Build A Boat'
Jonathan Gornall, Simon & Schuster
German plea
Ukrainian President Volodymyr Zelenskyy told the German parliament that. Russia had erected a new wall across Europe.
"It's not a Berlin Wall -- it is a Wall in central Europe between freedom and bondage and this Wall is growing bigger with every bomb" dropped on Ukraine, Zelenskyy told MPs.
Mr Zelenskyy was applauded by MPs in the Bundestag as he addressed Chancellor Olaf Scholz directly.
"Dear Mr Scholz, tear down this Wall," he said, evoking US President Ronald Reagan's 1987 appeal to Soviet leader Mikhail Gorbachev at Berlin's Brandenburg Gate.
