Almost three quarters of large institutional investors surveyed said they planned to invest in property in the Middle East and North Africa in the next year.
Almost three quarters of large institutional investors surveyed said they planned to invest in property in the Middle East and North Africa in the next year.

Lack of prime Mena property keeping investors on sidelines



Investors have money to spend on property in the Middle East and North Africa, but a lack of good opportunities at reasonable prices spells more stagnation for the region's markets, according to a survey by Jones Lang LaSalle.

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Almost three quarters of large institutional investors surveyed said they planned to invest in property in the Middle East and North Africa (Mena) in the next year, while only 8 per cent said they were looking to sell.

Yet the property consultancy predicted that transactions would be limited by political instability, concerns about oversupplied markets and a dearth of solid investment opportunities.

"They can't find the product they want at a price that makes sense," said Andrew Charlesworth, the head of capital markets for Jones Lang LaSalle in the Mena region. "They're keen to invest, but not at any cost. Pricing is everything and risk is everything."

While regional funds were focused on investing at home, he said, international investors were looking increasingly to developed markets, where they could see better returns.

That means the Mena region is "missing out on foreign institutional investment", according to the report.

Unrest in the region is among the top concerns for investors, the report says.

The central issue, however, is that investors are focusing on stable, income-generating assets, but finding such properties is a challenge.

Investors want to buy office buildings and industrial complexes in good locations, and occupied by tenants on long-term leases. But such opportunities are rare after a property boom that was characterised by shorter leases and a focus on construction rather than stable income from rentals.

"There is a shortage of commercial assets in prime locations with high occupancy and strong tenant covenants and, more importantly, owners rarely want to dispose of such assets," the report says.

In the UAE's office market, another concern is persistent oversupply. Numerous office buildings are nearing completion in Dubai, creating a risk of further price declines. Overall, respondents to the survey expected property prices to go down in the coming year. The highest declines were expected in Abu Dhabi, while Dubai was expected to stabilise.

That assessment comes as views about the UAE's property market begin to shift from negative to positive. Analysts at CB Richard Ellis, another property consultancy, said recently that a better economic outlook in Dubai would probably "result in improved demand levels as the year progresses". While the consultancy predicted residential rents in the emirate would fall by 8 to 12 per cent this year, it cited a "more stable outlook" for well-developed districts.

Jones Lang LaSalle, meanwhile, said in its report that Dubai had "already surpassed the supply peak".

Matthew Green, the head of research and consultancy at CB Richard Ellis in Dubai, agreed with Jones Lang LaSalle that investors in commercial property were "looking at prime assets that have a long-term future". Overall, he said, the pain caused by oversupply in the UAE continued but the future was looking increasingly less bleak.

"There is still a lot of supply to come on, but we're not producing the same numbers we were during the peak," he said. "It's too early to see any kind of real improvement, though certain areas are starting to pick up a little bit."

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Moral education needed in a 'rapidly changing world'

Moral education lessons for young people is needed in a rapidly changing world, the head of the programme said.

Alanood Al Kaabi, head of programmes at the Education Affairs Office of the Crown Price Court - Abu Dhabi, said: "The Crown Price Court is fully behind this initiative and have already seen the curriculum succeed in empowering young people and providing them with the necessary tools to succeed in building the future of the nation at all levels.

"Moral education touches on every aspect and subject that children engage in.

"It is not just limited to science or maths but it is involved in all subjects and it is helping children to adapt to integral moral practises.

"The moral education programme has been designed to develop children holistically in a world being rapidly transformed by technology and globalisation."

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Label: Parlophone/Atlantic

Number of tracks: 10

Rating: 3/5

What are the GCSE grade equivalents?
 
  • Grade 9 = above an A*
  • Grade 8 = between grades A* and A
  • Grade 7 = grade A
  • Grade 6 = just above a grade B
  • Grade 5 = between grades B and C
  • Grade 4 = grade C
  • Grade 3 = between grades D and E
  • Grade 2 = between grades E and F
  • Grade 1 = between grades F and G
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Company name: baraka
Started: July 2020
Founders: Feras Jalbout and Kunal Taneja
Based: Dubai and Bahrain
Sector: FinTech
Initial investment: $150,000
Current staff: 12
Stage: Pre-seed capital raising of $1 million
Investors: Class 5 Global, FJ Labs, IMO Ventures, The Community Fund, VentureSouq, Fox Ventures, Dr Abdulla Elyas (private investment)

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4pm: Mahab Al Shimaal Group 3 | US$350,000 | (Dirt) | 1,200m
4.35pm: Al Bastakiya Listed | $300,000 | (D) | 1,900m
5.10pm: Nad Al Sheba Turf Group 3 | $350,000 | (Turf) | 1,200m
5.45pm: Burj Nahaar Group 3 | $350,000 | (D) | 1,600m
6.20pm: Dubai City of Gold Group 2 | $300,000 | (T) | 2,410m
6.55pm: Al Maktoum Challenge Round 3 Group 1 | $600,000 | (D) | 2,000m
7.30pm: Jebel Hatta Group 1 | $400,000 | (T) | 1,800m

Your Guide to the Home
  • Level 1 has a valet service if you choose not to park in the basement level. This level houses all the kitchenware, including covetable brand French Bull, along with a wide array of outdoor furnishings, lamps and lighting solutions, textiles like curtains, towels, cushions and bedding, and plenty of other home accessories.
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Director: Vasan Bala
Starring: Alia Bhatt, Vedang Raina, Manoj Pahwa, Harsh Singh
Rated: 3.5/5
SPECS

Engine: 4-litre V8 twin-turbo
Power: 630hp
Torque: 850Nm
Transmission: 8-speed Tiptronic automatic
Price: From Dh599,000
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Keep it fun and engaging

Stuart Ritchie, director of wealth advice at AES International, says children cannot learn something overnight, so it helps to have a fun routine that keeps them engaged and interested.

“I explain to my daughter that the money I draw from an ATM or the money on my bank card doesn’t just magically appear – it’s money I have earned from my job. I show her how this works by giving her little chores around the house so she can earn pocket money,” says Mr Ritchie.

His daughter is allowed to spend half of her pocket money, while the other half goes into a bank account. When this money hits a certain milestone, Mr Ritchie rewards his daughter with a small lump sum.

He also recommends books that teach the importance of money management for children, such as The Squirrel Manifesto by Ric Edelman and Jean Edelman.

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UJDA CHAMAN

Produced: Panorama Studios International

Directed: Abhishek Pathak

Cast: Sunny Singh, Maanvi Gagroo, Grusha Kapoor, Saurabh Shukla

Rating: 3.5 /5 stars

The specs
Engine: 2.7-litre 4-cylinder Turbomax
Power: 310hp
Torque: 583Nm
Transmission: 8-speed automatic
Price: From Dh192,500
On sale: Now
Results

Stage 5:

1. Jonas Vingegaard (DEN) Team Jumbo-Visma  04:19:08

2. Tadej Pogacar (SLO) UAE Team Emirates  00:00:03

3. Adam Yates (GBR) Ineos Grenadiers

4. Sergio Higuita (COL) EF Education-Nippo 00:00:05

5. Joao Almeida (POR) Deceuninck-QuickStep 00:00:06

General Classification:

1. Tadej Pogacar (SLO) UAE Team Emirates 17:09:26

2.  Adam Yates (GBR) Ineos Grenadiers 00:00:45

3. Joao Almeida (POR) Deceuninck-QuickStep 00:01:12

4. Chris Harper (AUS) Team Jumbo-Visma 00:01:54

5. Neilson Powless (USA) EF Education-Nippo 00:01:56

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How to protect yourself when air quality drops

Install an air filter in your home.

Close your windows and turn on the AC.

Shower or bath after being outside.

Wear a face mask.

Stay indoors when conditions are particularly poor.

If driving, turn your engine off when stationary.

Plan to boost public schools

A major shake-up of government-run schools was rolled out across the country in 2017. Known as the Emirati School Model, it placed more emphasis on maths and science while also adding practical skills to the curriculum.

It was accompanied by the promise of a Dh5 billion investment, over six years, to pay for state-of-the-art infrastructure improvements.

Aspects of the school model will be extended to international private schools, the education minister has previously suggested.

Recent developments have also included the introduction of moral education - which public and private schools both must teach - along with reform of the exams system and tougher teacher licensing requirements.


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