Dubai Informer
Information about Dubai in all aspects
Sunday, July 29, 2007
Payments towards ‘off plan’ property purchases in Dubai will be protected in specially managed accounts after a law was issued this week by Dubai Government.
The eagerly-awaited ‘Law No. 8 concerning Guarantee Accounts of Real Estate Development in the Emirate of Dubai’ has now come into effect after being published in the Official Gazette.
The law applies to any company or individual receiving ‘off plan’ payments for property that is not yet completed. However, at this early stage only properties that are launched from this week onwards will be subject to the law, according to Dubai Land Department.
Developers launching new residential or commercial multi-storey buildings and compounds will now have to apply to Dubai Land Department to open a guarantee account, which are known more commonly as trust or escrow accounts.
To do this they must submit certain documents, including the title deed of the plot being developed, approved architectural designs and layouts, a letter of approval from a master developer and a trade license.
If these papers are in order, the trust account will be opened according to a written agreement between a developer and the Land Department.
Money paid by buyers or financiers towards properties will then be deposited in a special account opened under the name of the property development in an approved bank.
Dubai Islamic Bank (DIB) on Wednesday acted swiftly to launch the Al Islami Escrow Account, the first such service in the region designed specifically for real estate developers.
After setting up the account, the issue of how they are managed and when money is released becomes crucial.
The law states that developers must apply to the trust account manager to release money from the account. The developer must first produce a certificate from a consultant working on the property that an agreed stage of construction has been reached.
The trust account manager then must inform the Land Department about the sums being released to the developer.
Even when a project is complete the developer will still not be given access to all the payments. The Land Department will keep 10 per cent of the project value for one year after completion until all units are registered in the names of buyers and title deeds are issued in their names.
Fines of no less than Dh200,000 will be handed out if certain requirements within the law are not kept.
FULL TEXT OF THE LAW
LAW NO. (8)
CONCERNING GUARANTEE ACCOUNTS OF REAL ESTATE DEVELOPMENTS IN THE EMIRATE OF DUBAI
We, Mohammad Bin Rashid Al Maktoum - Ruler of Emirate of Dubai
After perusal of:
- United Arab Emirates Federal Law no. (5) of 1985, as amended concerning Civil Transactions,
- Law no. (7) of 2006 concerning Real Estate Registration in the Emirate of Dubai,
- Rule no. (3) of 2006 concerning allocation of areas where foreigners can own properties in the Emirate of Dubai,
Do hereby promulgate the following law:
Chapter 1
Definitions & General Provisions
Article (1)
This Law may be cited as (Law no. ( ) of 2006 concerning Guarantee Accounts of Real Estate Developments in the Emirate of Dubai.
Definitions
Article (2)
In implementation of the provisions of this Law, the following terms and phrases shall have the meanings appearing parallel thereto, unless otherwise provided by the context.
Emirate : Emirate of Dubai
Department: Department of Lands
President: President of the Department
Director: Director General of the Department
Register: Register prepared by the Department for registration of developers.
Guarantee Account: Guarantee account of a property development in which sums paid by buyers of units on the plan or by financiers of developments are deposited.
Concerned Authorities: concerned government or semi-government licensing authorities.
Developer: A natural or corporate person licensed to carry on property development business in the Emirate, including a main or minor developer.
Property Development: Projects involving construction of multi-storeyed buildings or compounds for residential or commercial purposes.
Property: Everything that is permanently fixed in its space and cannot be shifted without destruction or alteration in appearance.
Unit: A partitioned part of a property which a developer sells to third parties.
Article (3)
Provisions of this Law shall be applicable to a who sells units on the plan of the Emirate’s property developments that are not yet completed, whether under or in the process of construction, and who receives payments from buyers or financiers against such units before completion of the developments.
Article (4)
A special register known as (Register of Developers) shall be prepared at the Department to register names of developers licensed to carry on property development business in the Emirate. No developer may carry on such business in the Emirate unless being registered in the Register.
Article (5)
A developer shall not advertise in local or foreign media, or participate in local or foreigner exhibitions, for promotion of sale of units or properties on the plan or in the process of construction in the Emirate, until having obtained a written permit from the Department. The Director shall issue the necessary decisions to regulate the terms and conditions of advertising in media and participation in exhibitions.
Chapter 2
Establishing A Guarantee Account
Article (6)
Without prejudice to provisions of Article (3) of this Law, a developer wishing to sell units on the plan shall apply to the Department in order to open a guarantee account and shall enclose the following documents:
1- Trade license and certificate of registration of membership in Dubai Chamber of Commerce & Industry.
2 - Title deed of the plot intended for development.
3 - Letter of approval in relation to the development and issued by the main developer.
4 - Architectural designs and layouts approved by concerned authorities and the main developer.
5 - A balance sheet approved by the development’s consultant about sums payable to creditors of the development.
6 - Building permit issued by concerned authorities
7 - Copy of a sale contract between the developer and the buyer.
Article (7)
A guarantee account shall be established according to a written agreement between a developer and the Department through which sums paid by buyers of units on the plan, or paid by financiers, shall be deposited in a special account opened under the name of the property development in an approved bank in the Emirate.
The agreement shall determine the conditions of account management, the rights and obligations of contractual parties and other terms and obligations.
Chapter 3
Management of a Guarantee Account
Article (8)
The Department shall enter into a contract with an approved, experienced and qualified auditor to manage a guarantee account under its supervision. Spending from deposited sums shall be according to the conditions of contract and the provisions of this Law, and the guarantee account shall be governed by criteria of financial and accounting control that are in force in this regard.
Article (9)
Depositors or their representatives may examine their own accounting records and request copies thereof. The representative of official authorities may also examine the records as well as obtain copies thereof.
Article (10)
In the event that a developer mortgages a development to obtain a loan from financing establishments or companies he shall have to deposit the mortgage sum in the guarantee account. Disposal of a mortgage sum shall be according to provisions of this Law.
Article (11)
A developer may apply to the auditor for spending from a guarantee account after submitting a certificate issued by the consultant of a development describing completed stage and the requirement of a subsequent stage. The auditor shall have to inform the Department in writing about sums paid to the developer.
Article (12)
Without prejudice to Article (11), an auditor shall disburse payments due to a developer within 7 working days from the date of request for payment or the date of completion of required documents.
Article (13)
The Department shall keep 10% of the value of a development in the guarantee account for a period of one year after a developer has obtained a certificate of completion. The held sums shall not be spent until the units are registered in names of buyers and title deeds are issued under their names.
Chapter 4
Penalties
Article (14)
Without prejudice to any penalties provided for in any other law, a penalty of incarceration and payment of a fine not less than 200,000 Dirhams, or either one of them, shall be imposed on anyone who:
1 - Carries on property development business in the Emirate without a license.
2 - Submits false documents or misstatements to concerned authorities in order to obtain a license for carrying on property development business.
3 - Offers to knowingly sell units in bogus property developments.
4 - Embezzles, uses or squanders payments delivered to him for the purposes of construction of property developments, and misappropriates such payments.
5 - Any auditor who deliberately prepares a false report about the result of an audit he conducts on a developer’s financial position, or conceals significant facts from his report.
6 - Any consultant who knowingly approves false documents about a property development.
Article (15)
If proved that a developer is unable to execute a development, the Department shall take necessary legal actions to protect rights of third parties.
Article (16)
1 - A developer shall be cancelled from the Register in any of the following events:
1 - If he declares his bankruptcy.
2 - If he cancels his license.
3 - If carries on prohibited business in the Emirate.
4 - If he repetitively violates provisions of Article (5) of this Law.
Chapter 5
Final Provisions
Article (17)
Existing developers at the time when provisions of this Law are applicable shall adjust their status in accordance with the provisions herein.
Article (18)
The Department may collect management fees against services offered in accordance with this Law.
Article (20)
This Law shall be published in the Official Gazette and shall be effective from the date of publication.
The eagerly-awaited ‘Law No. 8 concerning Guarantee Accounts of Real Estate Development in the Emirate of Dubai’ has now come into effect after being published in the Official Gazette.
The law applies to any company or individual receiving ‘off plan’ payments for property that is not yet completed. However, at this early stage only properties that are launched from this week onwards will be subject to the law, according to Dubai Land Department.
Developers launching new residential or commercial multi-storey buildings and compounds will now have to apply to Dubai Land Department to open a guarantee account, which are known more commonly as trust or escrow accounts.
To do this they must submit certain documents, including the title deed of the plot being developed, approved architectural designs and layouts, a letter of approval from a master developer and a trade license.
If these papers are in order, the trust account will be opened according to a written agreement between a developer and the Land Department.
Money paid by buyers or financiers towards properties will then be deposited in a special account opened under the name of the property development in an approved bank.
Dubai Islamic Bank (DIB) on Wednesday acted swiftly to launch the Al Islami Escrow Account, the first such service in the region designed specifically for real estate developers.
After setting up the account, the issue of how they are managed and when money is released becomes crucial.
The law states that developers must apply to the trust account manager to release money from the account. The developer must first produce a certificate from a consultant working on the property that an agreed stage of construction has been reached.
The trust account manager then must inform the Land Department about the sums being released to the developer.
Even when a project is complete the developer will still not be given access to all the payments. The Land Department will keep 10 per cent of the project value for one year after completion until all units are registered in the names of buyers and title deeds are issued in their names.
Fines of no less than Dh200,000 will be handed out if certain requirements within the law are not kept.
FULL TEXT OF THE LAW
LAW NO. (8)
CONCERNING GUARANTEE ACCOUNTS OF REAL ESTATE DEVELOPMENTS IN THE EMIRATE OF DUBAI
We, Mohammad Bin Rashid Al Maktoum - Ruler of Emirate of Dubai
After perusal of:
- United Arab Emirates Federal Law no. (5) of 1985, as amended concerning Civil Transactions,
- Law no. (7) of 2006 concerning Real Estate Registration in the Emirate of Dubai,
- Rule no. (3) of 2006 concerning allocation of areas where foreigners can own properties in the Emirate of Dubai,
Do hereby promulgate the following law:
Chapter 1
Definitions & General Provisions
Article (1)
This Law may be cited as (Law no. ( ) of 2006 concerning Guarantee Accounts of Real Estate Developments in the Emirate of Dubai.
Definitions
Article (2)
In implementation of the provisions of this Law, the following terms and phrases shall have the meanings appearing parallel thereto, unless otherwise provided by the context.
Emirate : Emirate of Dubai
Department: Department of Lands
President: President of the Department
Director: Director General of the Department
Register: Register prepared by the Department for registration of developers.
Guarantee Account: Guarantee account of a property development in which sums paid by buyers of units on the plan or by financiers of developments are deposited.
Concerned Authorities: concerned government or semi-government licensing authorities.
Developer: A natural or corporate person licensed to carry on property development business in the Emirate, including a main or minor developer.
Property Development: Projects involving construction of multi-storeyed buildings or compounds for residential or commercial purposes.
Property: Everything that is permanently fixed in its space and cannot be shifted without destruction or alteration in appearance.
Unit: A partitioned part of a property which a developer sells to third parties.
Article (3)
Provisions of this Law shall be applicable to a who sells units on the plan of the Emirate’s property developments that are not yet completed, whether under or in the process of construction, and who receives payments from buyers or financiers against such units before completion of the developments.
Article (4)
A special register known as (Register of Developers) shall be prepared at the Department to register names of developers licensed to carry on property development business in the Emirate. No developer may carry on such business in the Emirate unless being registered in the Register.
Article (5)
A developer shall not advertise in local or foreign media, or participate in local or foreigner exhibitions, for promotion of sale of units or properties on the plan or in the process of construction in the Emirate, until having obtained a written permit from the Department. The Director shall issue the necessary decisions to regulate the terms and conditions of advertising in media and participation in exhibitions.
Chapter 2
Establishing A Guarantee Account
Article (6)
Without prejudice to provisions of Article (3) of this Law, a developer wishing to sell units on the plan shall apply to the Department in order to open a guarantee account and shall enclose the following documents:
1- Trade license and certificate of registration of membership in Dubai Chamber of Commerce & Industry.
2 - Title deed of the plot intended for development.
3 - Letter of approval in relation to the development and issued by the main developer.
4 - Architectural designs and layouts approved by concerned authorities and the main developer.
5 - A balance sheet approved by the development’s consultant about sums payable to creditors of the development.
6 - Building permit issued by concerned authorities
7 - Copy of a sale contract between the developer and the buyer.
Article (7)
A guarantee account shall be established according to a written agreement between a developer and the Department through which sums paid by buyers of units on the plan, or paid by financiers, shall be deposited in a special account opened under the name of the property development in an approved bank in the Emirate.
The agreement shall determine the conditions of account management, the rights and obligations of contractual parties and other terms and obligations.
Chapter 3
Management of a Guarantee Account
Article (8)
The Department shall enter into a contract with an approved, experienced and qualified auditor to manage a guarantee account under its supervision. Spending from deposited sums shall be according to the conditions of contract and the provisions of this Law, and the guarantee account shall be governed by criteria of financial and accounting control that are in force in this regard.
Article (9)
Depositors or their representatives may examine their own accounting records and request copies thereof. The representative of official authorities may also examine the records as well as obtain copies thereof.
Article (10)
In the event that a developer mortgages a development to obtain a loan from financing establishments or companies he shall have to deposit the mortgage sum in the guarantee account. Disposal of a mortgage sum shall be according to provisions of this Law.
Article (11)
A developer may apply to the auditor for spending from a guarantee account after submitting a certificate issued by the consultant of a development describing completed stage and the requirement of a subsequent stage. The auditor shall have to inform the Department in writing about sums paid to the developer.
Article (12)
Without prejudice to Article (11), an auditor shall disburse payments due to a developer within 7 working days from the date of request for payment or the date of completion of required documents.
Article (13)
The Department shall keep 10% of the value of a development in the guarantee account for a period of one year after a developer has obtained a certificate of completion. The held sums shall not be spent until the units are registered in names of buyers and title deeds are issued under their names.
Chapter 4
Penalties
Article (14)
Without prejudice to any penalties provided for in any other law, a penalty of incarceration and payment of a fine not less than 200,000 Dirhams, or either one of them, shall be imposed on anyone who:
1 - Carries on property development business in the Emirate without a license.
2 - Submits false documents or misstatements to concerned authorities in order to obtain a license for carrying on property development business.
3 - Offers to knowingly sell units in bogus property developments.
4 - Embezzles, uses or squanders payments delivered to him for the purposes of construction of property developments, and misappropriates such payments.
5 - Any auditor who deliberately prepares a false report about the result of an audit he conducts on a developer’s financial position, or conceals significant facts from his report.
6 - Any consultant who knowingly approves false documents about a property development.
Article (15)
If proved that a developer is unable to execute a development, the Department shall take necessary legal actions to protect rights of third parties.
Article (16)
1 - A developer shall be cancelled from the Register in any of the following events:
1 - If he declares his bankruptcy.
2 - If he cancels his license.
3 - If carries on prohibited business in the Emirate.
4 - If he repetitively violates provisions of Article (5) of this Law.
Chapter 5
Final Provisions
Article (17)
Existing developers at the time when provisions of this Law are applicable shall adjust their status in accordance with the provisions herein.
Article (18)
The Department may collect management fees against services offered in accordance with this Law.
Article (20)
This Law shall be published in the Official Gazette and shall be effective from the date of publication.
Labels: Construction, Dubai, Properties
Sunday, July 22, 2007
At 512.1 metres (1,680 feet), Burj Dubai has become the world's tallest tower.
Burj Dubai, being developed by Emaar Properties, is now taller than Taipei 101 in Taiwan, which at 508 metres had been the tallest building in the world since it opened in 2004. Burj Dubai has now reached 141 levels - more storeys than any other building in the world.
On schedule for completion in 2008, Burj Dubai will be the tallest structure in the world in all four criteria listed by the Council on Tall Buildings and Urban Habitat. The council measures height to the structural top, the highest occupied floor, to the top of the roof, and to the tip of the spire, pinnacle, antenna, mast or flag pole.
During its construction, Burj Dubai has left behind the skyscrapers that previously defined tall tower architecture around the world such as Petronas Towers in Malaysia (452 metres); Sears Tower in Chicago (442 metres); Jin Mao Building in Shanghai (421 metres) and the Empire State Building in New York (381 metres).
The company has yet to reveal the final height and number of storeys. When completed, Burj Dubai will have consumed 330,000 cubic metres of concrete, 39,000 metric tonnes of steel rebar, 142,000 square metres of glass and 22 million man hours. The tower will have 56 elevators travelling at 1.75 to 10 metres per second and double-decker observatory elevators that can carry 42 people at a time.
More than 313,700 cubic metres of reinforced concrete and 62,200 tonnes of reinforcing steel have been used in the tower's construction so far. Burj Dubai has already set a world record for vertical concrete pumping for a building by pumping to more than 460 metres. The previous record of 448 metres was held by Taipei 101.
Burj Dubai has been designed to manage the effect of wind and seismic movements. High-strength concrete makes up the tower's superstructure, which is supported by reinforced concrete mats and piles. The 80,000 square foot foundation slab and 50-metre deep piling are waterproofed.
Burj Dubai became the tallest building in the world in just 1,276 days; excavation work started in January 2004.
More than 5,000 consultants and skilled construction workers are employed onsite, and the world's fastest high-capacity construction hoists, with a speed of up to two metres per second, move men and materials.
Masterpiece
"Burj Dubai is not just an architectural and engineering masterpiece in concrete, steel and glass. It is a human achievement without equal. Burj Dubai will inspire future generations to think beyond the ordinary and to challenge their mind and spirit," said Mohammad Ali Al Abbar, chairman of Emaar Properties.
Emaar has partnered with best-in-class consultants such as South Korean construction major Samsung Corporation and New York-based Project Manager Turner Construction to realise the design of architect Adrian Smith and Skidmore, Owings & Merrill of Chicago.
Fact file: Important milestones
February 2003: Emaar Properties announces Burj Dubai
January 2004: Excavation work for Burj Dubai begins
June 2004: Launches Downtown Burj Dubai
September 2004: His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, witnesses the first pouring of cement for Burj Dubai
May 2005: Deal signed with Giorgio Armani to open The Armani Hotel & Residences in Burj Dubai
June 2006: Burj Dubai scales 50 levels
January 2007: Burj Dubai reaches Level 100
March 2007: Burj Dubai, at Level 110, is the tallest structure in the Middle East and Europe
April 2007: At Level 120, Burj Dubai sets new global record for having more floors than any other building
May 2007: At Level 130, Burj Dubai is second tallest tower in the world
July 2007: At Level 141, it is tallest tower in the world
Burj Dubai, being developed by Emaar Properties, is now taller than Taipei 101 in Taiwan, which at 508 metres had been the tallest building in the world since it opened in 2004. Burj Dubai has now reached 141 levels - more storeys than any other building in the world.
On schedule for completion in 2008, Burj Dubai will be the tallest structure in the world in all four criteria listed by the Council on Tall Buildings and Urban Habitat. The council measures height to the structural top, the highest occupied floor, to the top of the roof, and to the tip of the spire, pinnacle, antenna, mast or flag pole.
During its construction, Burj Dubai has left behind the skyscrapers that previously defined tall tower architecture around the world such as Petronas Towers in Malaysia (452 metres); Sears Tower in Chicago (442 metres); Jin Mao Building in Shanghai (421 metres) and the Empire State Building in New York (381 metres).
The company has yet to reveal the final height and number of storeys. When completed, Burj Dubai will have consumed 330,000 cubic metres of concrete, 39,000 metric tonnes of steel rebar, 142,000 square metres of glass and 22 million man hours. The tower will have 56 elevators travelling at 1.75 to 10 metres per second and double-decker observatory elevators that can carry 42 people at a time.
More than 313,700 cubic metres of reinforced concrete and 62,200 tonnes of reinforcing steel have been used in the tower's construction so far. Burj Dubai has already set a world record for vertical concrete pumping for a building by pumping to more than 460 metres. The previous record of 448 metres was held by Taipei 101.
Burj Dubai has been designed to manage the effect of wind and seismic movements. High-strength concrete makes up the tower's superstructure, which is supported by reinforced concrete mats and piles. The 80,000 square foot foundation slab and 50-metre deep piling are waterproofed.
Burj Dubai became the tallest building in the world in just 1,276 days; excavation work started in January 2004.
More than 5,000 consultants and skilled construction workers are employed onsite, and the world's fastest high-capacity construction hoists, with a speed of up to two metres per second, move men and materials.
Masterpiece
"Burj Dubai is not just an architectural and engineering masterpiece in concrete, steel and glass. It is a human achievement without equal. Burj Dubai will inspire future generations to think beyond the ordinary and to challenge their mind and spirit," said Mohammad Ali Al Abbar, chairman of Emaar Properties.
Emaar has partnered with best-in-class consultants such as South Korean construction major Samsung Corporation and New York-based Project Manager Turner Construction to realise the design of architect Adrian Smith and Skidmore, Owings & Merrill of Chicago.
Fact file: Important milestones
February 2003: Emaar Properties announces Burj Dubai
January 2004: Excavation work for Burj Dubai begins
June 2004: Launches Downtown Burj Dubai
September 2004: His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, witnesses the first pouring of cement for Burj Dubai
May 2005: Deal signed with Giorgio Armani to open The Armani Hotel & Residences in Burj Dubai
June 2006: Burj Dubai scales 50 levels
January 2007: Burj Dubai reaches Level 100
March 2007: Burj Dubai, at Level 110, is the tallest structure in the Middle East and Europe
April 2007: At Level 120, Burj Dubai sets new global record for having more floors than any other building
May 2007: At Level 130, Burj Dubai is second tallest tower in the world
July 2007: At Level 141, it is tallest tower in the world
Labels: Burj Dubai, Construction, Dubai, Properties
Sunday, July 15, 2007
The runway to success for Airbus goes through Dubai, it seems. Only a few weeks after Dubai-based airline Emirates ordered $2.6 billion worth of planes from the European manufacturer, investment firm Dubai International Capital has bought a 3.1% stake in Airbus' parent, European Aeronautic Defense and Space.
The stake has been valued at 614 million euros ($837 million) and could be a strategic starting point for Dubai International Capital, a subsidiary of government-owned Dubai Holding. Although the $6 billion private-equity firm said it would not seek a board seat nor take "an active role" with European Aeronautic Defense and Space (other-otc: EADSF - news - people ), it added that it wanted "a strategic relationship with the EADS management and shareholders."
"EADS has been on our shortlist from the outset," said Sameer al-Ansari, Dubai International Capital's chief executive. "The company’s challenges are well-publicized."
EADS has run into trouble with its Airbus unit over the past two years, with long-running delivery delays and manufacturing problems with its A380 superjumbo jet leading to the high-profile departure of several executives. (See "Airbus Rues Huge Losses") But the injection of private investment could ease the gridlock that has emerged between the governments of France and Germany over the company's dual-governance structure.
The power balance of EADS' major shareholders is divided between the French government's 15% stake, the Lagardere Group (other-otc: LGDDF - news - people )'s 15% stake that is being reduced to 7.5%, DaimlerChrysler (nyse: DCX - news - people )'s 15% stake and a 7.5% stake owned by a German investor consortium, including some German states. Russia entered the fray last year with a controversial 5% stake held through state-owned Vneshtorgbank.
With France and Germany wishing to retain influence, the arrival of Dubai could be the answer to political prayers. "The EADS and the government reaction will be ecstatic," said Doug McVitie, managing director of Arran Aerospace, adding that the stake represented "money with no overt strings attached." President Nicolas Sarkozy of France said last month that he wanted to attract new investors to EADS but worried that the restrictive shareholder pact that limited voting rights would deter new arrivals.
An EADS spokesman said that the sale was "good news" and that the company "always wanted a shareholder structure that's as broad as possible."
Dubai International Capital has enough spare cash to be looking to build its stake. The firm has been in a shedding mood so far this year: it sold the Tussauds entertainment group to Blackstone (nyse: BX - news - people ) for £1.0 billion ($2.1 billion) in March, and two months later announced the sale of its $1 billion holding in DaimlerChrysler.
Investors cautiously pushed up EADS shares 22 euro cents (44 cents), or 0.9%, to 24.27 euros ($48.97).
The stake has been valued at 614 million euros ($837 million) and could be a strategic starting point for Dubai International Capital, a subsidiary of government-owned Dubai Holding. Although the $6 billion private-equity firm said it would not seek a board seat nor take "an active role" with European Aeronautic Defense and Space (other-otc: EADSF - news - people ), it added that it wanted "a strategic relationship with the EADS management and shareholders."
"EADS has been on our shortlist from the outset," said Sameer al-Ansari, Dubai International Capital's chief executive. "The company’s challenges are well-publicized."
EADS has run into trouble with its Airbus unit over the past two years, with long-running delivery delays and manufacturing problems with its A380 superjumbo jet leading to the high-profile departure of several executives. (See "Airbus Rues Huge Losses") But the injection of private investment could ease the gridlock that has emerged between the governments of France and Germany over the company's dual-governance structure.
The power balance of EADS' major shareholders is divided between the French government's 15% stake, the Lagardere Group (other-otc: LGDDF - news - people )'s 15% stake that is being reduced to 7.5%, DaimlerChrysler (nyse: DCX - news - people )'s 15% stake and a 7.5% stake owned by a German investor consortium, including some German states. Russia entered the fray last year with a controversial 5% stake held through state-owned Vneshtorgbank.
With France and Germany wishing to retain influence, the arrival of Dubai could be the answer to political prayers. "The EADS and the government reaction will be ecstatic," said Doug McVitie, managing director of Arran Aerospace, adding that the stake represented "money with no overt strings attached." President Nicolas Sarkozy of France said last month that he wanted to attract new investors to EADS but worried that the restrictive shareholder pact that limited voting rights would deter new arrivals.
An EADS spokesman said that the sale was "good news" and that the company "always wanted a shareholder structure that's as broad as possible."
Dubai International Capital has enough spare cash to be looking to build its stake. The firm has been in a shedding mood so far this year: it sold the Tussauds entertainment group to Blackstone (nyse: BX - news - people ) for £1.0 billion ($2.1 billion) in March, and two months later announced the sale of its $1 billion holding in DaimlerChrysler.
Investors cautiously pushed up EADS shares 22 euro cents (44 cents), or 0.9%, to 24.27 euros ($48.97).
Tuesday, July 10, 2007
Water bus, which is considered the first mass marine transportation service in the Middle East, will start providing its services at Dubai Creek on July 15.
The Roads and Transport Authority (RTA), yesterday announced that there will be four operating routes between the two sides of the creek. A one-way trip across the creek will cost Dh4 which is a temporary price, while the final price awaits approval by the Executive Council in the coming days.
Engineer Eisa Abdul Rahman Al Dossary, CEO of Marine Agency, said initially, 10 water buses, manufactured locally, will serve four routes and five stations along the creek.
Daily tickets
He also announced that payment for the water bus will be done through daily tickets issued automatically through prepaid smart cards or through instant cash payment.
"The bus will operate through four commuter service routes and one tourist service route. The tourist service route will be from Al Shindagha station to Al Seef station and costs Dh25 for each person and the trip is 25 minutes long," Al Dossary said.
The commuter services are from Al Seef station to Bani Yas station, Al Sabkha station to Bur Dubai station, Old Dubai Souq station to Al Seef station and Old Souq station to Bani Yas station. The water bus will run daily from 6am to 11pm.
The overall cost of the water bus project is around Dh10 million; one bus costs Dh800,000 and can carry 35 passengers at a time. The RTA signed an agreement with the Singaporean Penguin Co. to operate and maintain the water bus at a cost of Dh8.9 million for two years.
The contract covers several aspects, at the top of which is the operation of the water bus in a regular manner. The contract also includes arranging for periodical corrective and preventative maintenance, ensuring the safety of the water buses, minimising the occurrence of accidents involving the water bus and attending to all matters that may jeopardise the safety of the water bus.
Information: Water buses to have air-conditioning
Ten water buses will be operational on July 15. Each bus is 12 metres long, 4.2 metres wide and weighs 8 tonnes.
Each bus has two engines operating on diesel.
The buses are made from aluminium and each bus has two hulls.
The buses are air-conditioned, have LCD screens, comfortable seating and usability by people with special needs.
The Roads and Transport Authority (RTA), yesterday announced that there will be four operating routes between the two sides of the creek. A one-way trip across the creek will cost Dh4 which is a temporary price, while the final price awaits approval by the Executive Council in the coming days.
Engineer Eisa Abdul Rahman Al Dossary, CEO of Marine Agency, said initially, 10 water buses, manufactured locally, will serve four routes and five stations along the creek.
Daily tickets
He also announced that payment for the water bus will be done through daily tickets issued automatically through prepaid smart cards or through instant cash payment.
"The bus will operate through four commuter service routes and one tourist service route. The tourist service route will be from Al Shindagha station to Al Seef station and costs Dh25 for each person and the trip is 25 minutes long," Al Dossary said.
The commuter services are from Al Seef station to Bani Yas station, Al Sabkha station to Bur Dubai station, Old Dubai Souq station to Al Seef station and Old Souq station to Bani Yas station. The water bus will run daily from 6am to 11pm.
The overall cost of the water bus project is around Dh10 million; one bus costs Dh800,000 and can carry 35 passengers at a time. The RTA signed an agreement with the Singaporean Penguin Co. to operate and maintain the water bus at a cost of Dh8.9 million for two years.
The contract covers several aspects, at the top of which is the operation of the water bus in a regular manner. The contract also includes arranging for periodical corrective and preventative maintenance, ensuring the safety of the water buses, minimising the occurrence of accidents involving the water bus and attending to all matters that may jeopardise the safety of the water bus.
Information: Water buses to have air-conditioning
Ten water buses will be operational on July 15. Each bus is 12 metres long, 4.2 metres wide and weighs 8 tonnes.
Each bus has two engines operating on diesel.
The buses are made from aluminium and each bus has two hulls.
The buses are air-conditioned, have LCD screens, comfortable seating and usability by people with special needs.
Labels: Dubai, Dubai Metro, Holiday, Society
Sunday, July 01, 2007
du captures 10% of UAE population ahead of schedule
du, the new national telecom operator in the UAE, today announced that it reached the half a million mark of customers, ten days ago.
Emphasizing the factors that resulted in this achievement, Osman Sultan, CEO du, said: "We have launched in the UAE with a very carefully thought out strategy that includes introducing many firsts to the market. du is proud to be the first to bring to the market a vast array of initiatives including Pay by the Second, International video calling, Mobile TV, Mobile Payments, a unique Self Care service and Mobile portal – 'MyWorld' and a worldwide first, Number Booking which was designed to save customers the bother of lining up at shops to book their preferred number. We are the first operator worldwide to launch with such a vast array of services and products."
"The launching of a new operator in an established market is never an easy task and even more so when it is the market with the highest mobile penetration in the world. But we have really pulled together as a team to not only face this task, but achieve our target much earlier than anticipated, in just over four months. What we are most proud of, however, is this expression of people's trust in du," he continued. "This 500k milestone has been achieved only as a result of our constant efforts to improve our network and ensure we are providing the maximum comfort to our customers."
du has addressed the issue of network coverage that all new operators face head on, by increasing the coverage area by the day and working with various government departments to increase coverage in all the emirates. In its efforts to ensure the most comfortable experience for customers, du has also partnered with leading retail brands to provide easy access across the emirates through a vast distribution network, in addition to all the du retail outlets.
Discussing the way forward post-launch, Sultan continued, "We are completely focused on the quality of service we provide our customers. Improvements are being made everyday and we are constantly in touch with our customers, getting their feedback and working on it at once. du keeps the customer at the heart of all we do and we see our continued success being closely interwoven with how well we respond to their needs."
du, the new national telecom operator in the UAE, today announced that it reached the half a million mark of customers, ten days ago.
Emphasizing the factors that resulted in this achievement, Osman Sultan, CEO du, said: "We have launched in the UAE with a very carefully thought out strategy that includes introducing many firsts to the market. du is proud to be the first to bring to the market a vast array of initiatives including Pay by the Second, International video calling, Mobile TV, Mobile Payments, a unique Self Care service and Mobile portal – 'MyWorld' and a worldwide first, Number Booking which was designed to save customers the bother of lining up at shops to book their preferred number. We are the first operator worldwide to launch with such a vast array of services and products."
"The launching of a new operator in an established market is never an easy task and even more so when it is the market with the highest mobile penetration in the world. But we have really pulled together as a team to not only face this task, but achieve our target much earlier than anticipated, in just over four months. What we are most proud of, however, is this expression of people's trust in du," he continued. "This 500k milestone has been achieved only as a result of our constant efforts to improve our network and ensure we are providing the maximum comfort to our customers."
du has addressed the issue of network coverage that all new operators face head on, by increasing the coverage area by the day and working with various government departments to increase coverage in all the emirates. In its efforts to ensure the most comfortable experience for customers, du has also partnered with leading retail brands to provide easy access across the emirates through a vast distribution network, in addition to all the du retail outlets.
Discussing the way forward post-launch, Sultan continued, "We are completely focused on the quality of service we provide our customers. Improvements are being made everyday and we are constantly in touch with our customers, getting their feedback and working on it at once. du keeps the customer at the heart of all we do and we see our continued success being closely interwoven with how well we respond to their needs."
Categories + Archive
Some rights of this page's plain text stuffs are reserved for the author. © Dubaiinformer 2007
powered by Blogger Dubai Informer - Information about Dubai