Literature Review

Shaima

16/10/2007

Dr Frances Plimmer

Research methods

Real Estate

Literature Review

United Arab Emirates:

The United Arab Emirates is made up of seven Emirates.  They are AbuDhabi, Ras al-Khaimah, Fujairah, Ajman, Sharjah, Umm al-Quwain and Dubai. AbuDhabi is the federal capital of the UAE and is the largest of the sevenEmirates, occupying around 70% (Christine & Nick p 10) of the total landarea.  While Dubai, considered as the commercial and investment hub, hasemerged as the forerunner in the tourism and construction sectors. These twoemirates (Abu Dhabi and Dubai) are still the dominant economic players in thecountry.

The UAE is extremely rich in oil and, even though it lacks other naturalresources, it expects current additional economic diversification to portraynew financial as well as banking firms. It has become extremely wealthy aftergaining foreign direct investment funding in the 1970s. The country has arather high Human Development Index when compared to other Asian countries thecountry has risen 8 ranks on the Human Development Index.

UAE Economic Outlook:

UAE’s nominal GDP grew at a great speed by 25.6% in 2005 to achieveAED485.5bn (US$132.3bn) (, United Arab Emirates Central Bank) this has beenaccepted by the central bank.

Real GDP in 2005 grew quite rapidly by 8.2% to AED357.6bn on the back ofextremely strong economic activity, and the prices of oil also grew at a fastpace resulting in big fiscal as well as external surpluses.  EconomicGrowth in the last few years has highly increased the per capita GDP to arecord high of US$28,147 in the year 2005 as compared with US$24,380 the yearbefore (Marcus & Howard p 78).

When Gulf Cooperation Council (GCC) countries are analyzed it can be saidthat that after Qatar, UAE has the highest per capita GDP.  After lookingforward, we anticipate economic growth to stay the same for both years 2006 aswell as 2007. GDP is expected to grow by a good 14% for the year 2006 to reachAED553.4bn, whereas in real terms the economy is expected to achieveapproximately 9.7%. Of a high growth rate

UAE Real Estate:

The UAE’s property market sector wholly contributed to 7.4 percent of thecountry’s GDP in 2005. That year, in 2005 it experienced an immense growth of19.7%, as well as a CAGR of 13.5% during the period 2000 to 2005. This sectorwas buoyed by the increase in investment in infrastructure, the rise in theresidential and non-residential units, and the country’s development into aneye-catching tourist destination.  Because of the country beingtransformed indication to the rise in residential  and non residentialunits The real estate and construction sectors both accounted for 14.6% of GDPvia government in 2005 (Marcus& Howard p 76). Dubai, the most importantmarket for foreign investments has made some crucial improvements over the lastfew years. After allowing 100% possession for foreigners in selected locations,there have been some amendments to the law including the newly announcedproperty law No. 3 of 2007 which was issued via government early thisyear.  This law completely legalizes freehold ownership of land as well asproperty to UAE along with GCC nationals, whereas permitting equal rights tonon-GCC expatriates in designated areas. The latest law fully permitsexpatriate homeowners to record and register all their property in their namesthrough the Dubai Lands and Properties Department.

Urban Planning 2030: Abu Dhabi

Urban Structure Framework Plan 2030(Marcus &Howard p 75), a completeplan destined for the development of the city of Abu Dhabi that will aim tohelp, as well as guide,  in making decisions for the next quarter of acentury. The Government has also recently made an announcement regarding theestablishment of a new Urban Planning Council to supervise the implementationof the plan for future development of urban planning policies.

The plan has been made for the sole purpose of delivering upon the vision ofSheikh Khalifa bin Zayed Al Nahyan, President of the UAE as well as Ruler ofAbu Dhabi, and for the continuous accomplishment of the grand design envisionedby the late Sheikh Zayed bin Sultan Al Nahyan and the enduring development ofAbu Dhabi as an international capital city. More than Dh600 billion worth ofdevelopment works are already at various stages of completion in Abu Dhabi,which has 96 billion barrels of proven oil reserves – enough for a 100-yearsupply at current production rate. The emirate also hosts three cities. TheDh55-billion Al Raha Beach Development, Dh100-billion Saadiyat Islands, theDh30-billion Reem Island and the Dh40-billion Yas Island projects are some ofthe master developments taking shape in the emirate. Along with these, a largeinvestment in downstream petrochemical sector, industries, aviation and tourism– Dh25 billion in redevelopment of Abu Dhabi International Airport and Dh30billion in Etihad Airways – are all part of a larger plan to transform AbuDhabi into an economic powerhouse in the Middle East.(http://archive.gulfnews.com/articles/07/09/21/10155159.html)

The international urban planning task force that was created by theExecutive Affairs Authority designed and implemented a versatile plan in orderto create a Plan of Urban Structure Framework for the purpose of growth anddevelopment of its Emirate.

The main principles outlined by the government for shaping the developmentof the city under Plan Abu Dhabi 2030, are that, Abu Dhabi will remain to be acontemporary expression of an Arab City, where the people continue to live in ahealthy, close and supportive proximity with one another, in the firstplace.

The taskforce predicted that complete development would take from 2007 tothe year 2030. Work on the plan that shaped “Plan Abu Dhabi 2030″ discussed thefollowing fundamental matters:

Encouraging meetings with Crown Prince of Abu Dhabi His Highness SheikhMohamed bin ZayedAl Nahyan, as well as senior legislative body the ExecutiveCouncil of Abu Dhabi along with the senior representatives of the Department ofMunicipalities, in order to properly comprehend the vision for Abu Dhabi thatwould eventually guide the planning procedure.

A chief social, cultural and economic analysis to identify the way of lifein the Emirates, as well as the driving factors of demand in the real estatesector; A important environmental analysis to get a better understanding of theecological property of Abu Dhabi, and its rare sea along with the desertlocation; A complete audit via city planning experts, to estimate the ‘masterplans’ of future key developments in Abu Dhabi; An urgent analysis of thecity’s infrastructure and transport needs that are highly required , inrequites of infrastructure  as well as transport for the studying housingand settlement patterns. To also study design workshops, that is held in AbuDhabi in the year 2007, in which many guest urban planning and communitydevelopment experts from eight different countries as well as representativesfrom a lot of Abu Dhabi’s authorities and departments work jointly to map out asuccessful and prosperous future for the city. The plan has been created underthe directive of the President, His Highness Sheikh Khalifa bin Zayed AlNahyan, to fulfil the grand design envisaged by the late Sheikh Zayed binSultan. The plan specifies the land uses, building heights and transportationplans for the entire metropolitan area of Abu Dhabi. The plan includesdeveloping apartment buildings, eco-friendly villages and deserts, enhancingthe transportation facilities and an extensive central business city in a newregion in Abu Dhabi(http://www.khaleejtimes.com/DisplayArticleNew.asp?xfile=data/theuae/2007/September/theuae_September512.xml&section=theuae&col=)

Key Directions

The city’s population possibly will grow to three million or it may gobeyond five million by 2030. By then, Abu Dhabi’s gross population is projectedto surge to 3.1 million from the current baseline figure of 930,000 in 2007,while annual tourist visits and residential units are set to rise to 7.9million and 686,000 from 1.8 million and 180,000 respectively. In any case,this Plan presents a sensible, flexible and sustainable vision of the future(Marcus & Howard p 70). The key directions comprise of the following:

Sustainability

It is necessary to provide accommodation for the fast growing new populationwithout over development, without needlessly breaking buildings, and keeping inmind the conserving and respecting of natural and cultural resources.

Oil has brought substantial wealth to the city; however it is a limitedresource. Abu Dhabi’s future lies in the capability to vigilantly use thewealth they already have to dynamically discover renewable energy production,to lessen the consumption of non renewable resources as well as to educateupcoming generations.

A Unique Environment

Planning for cautious, sensitive growth is practical so that we conserve theimportant natural environment that makes Abu Dhabi only one of its kind. It isvital to find out and preserve these distinct environmental and culturalfacilities first and then decide where new development may best be positioned,keeping a fair balance between conservation as well as development. Protectedareas can constantly be wisely developed at a later date, but it is extremelyhard to get back a damaged environment.

An Evolving Culture

New development ought to be considered at a human scale to guarantee thecity is still pleasant to live in even when the population passes approximatelythree million. There should most certainly be a range of housing and services,targeting each and every one of the income levels. Flexibility and creativitywill be the source to developing the traditional way of living and concurrentlyaccommodating the latest lifestyle choices that will surface in a constantlygrowing culture.

Identity and Opportunity

Abu Dhabi has an extremely rare chance to put forward a unique blend offeatures in its urban identity: an genuine and safe nevertheless alsoprogressive and open Arab city; a personality solely made from the desert andthe sea; a way of life that is completely traditional however with the latest21st century options; it offers a place for business progress as well as aplace where culture still holds importance. The city ought to be defined as agreat deal by the natural islands and dunes that surround it as theinfrastructure, streets, and homes to be urbanized.

Excellence and Livability

Abu Dhabi needs to classify the quality and quantity of development that issatisfactory to the city. It is sensible to use explicit development principlesto estimate the planned projects and to not yield to persuasive marketing. Thebelief of a comfortable and convenient life must be persistent in every one ofthe development decisions that is made.

Abu Dhabi will see strong demand for residential units across all sectors ofthe market as the population grows. Strong governmental and service sectorswill lead to a gradual increase in the proportion of white collar workers.According to the Plan, number of residential units will jump to 686,000 by 2030from 180,000 in 2007, 251,000 in 2013 and 411,000 in 2020 (El-Namaki p 5).

Connectivity

The main method of transportation today in the municipal environs of AbuDhabi remains the car, supplemented by private bus companies.  Thissituation clearly cannot depend only on the automobile; it cannot besustainable once the population hits the figure of three million. The city willrequire a multi-layered transportation network to join the downtown center withlatest growth nodes and the developed islands. In the similar logic,connectivity should be clear in a hierarchical system of open spaces that areformal and informal and are also biologically-significant areas that are highlyprotected.

Hypothesis

The Plan set out by Sheikh Khalifa Bin Zayed provides a modern, dynamic,sensitive and culturally sympathetic platform for the urban development of AbuDhabi city

Objectives to Achieve the Hypothesis

The study has a number of objectives, each of the objectives play a vitalrole in supporting the above given hypothesis. The objectives are asfollows:

To study the vision of Sheikh Khalifa bin Zayed Al Nahyan, of thedevelopment of Abu Dhabi. The vision of his highness is what made Abu Dhabieligible for such dynamic development. Thus this objective will support thehypothesis, as it will give an in-depth explanation of how the concept of thisdevelopment came into being.

The growth in GDP coming from the UAE real estate market will help in thedevelopment.  Requirement for property in UAE has grown immensely in thepast two years, thus the population will also grow by the year 2030. Due tothis accommodation will have to be provided to the growing population and so itwill become very necessary to develop the capital that is Abu Dhabi.

To study Abu Dhabi’s urbanization with reference sustainability. Abu Dhabi’sdevelopment in 2030 depends a lot on sustainability, as without it Abu Dhabiwill lose its culture.

To study the urbanization of Abu Dhabi in the light of “Plan Abu Dhabi2030″. This plan completely focuses on the how Abu Dhabi will develop till 2030thus completely supporting the hypothesis.

To study the role of Connectivity in the urbanization of Abu Dhabi. Withoutconnectivity no city can be developed to it’s fullest for which this objectivehas to be studied in order to achieve the hypothesis.

To study the identity and opportunity as a factor for urbanization of AbuDhabi. In order for a city to develop it is important that many opportunitiesare given to the people who live there.  It also gives a strong identity.Abu Dhabi till 2030 will be all this to it’s its residents. Thus this objectivewill help in supporting the hypothesis.

Conclusion

Thus to conclude it can be said that Abu Dhabi should consider newdevelopment Work cited

M.S.S. El-Namaki; Strategy and Entrepreneurship in Arab Countries Dec 2007p5

Marcus Noland & Howard Pack;  The Arab Economies in a ChangingWorld,  Institute for International Economics, U.S. 2007 pp 70 -80

Nowell& Nick Crawley; Now & Then: Abu Dhabi Zodiac Publishing 2001 p10