On June 28, the UAE government approved plans to extend the residential visa from six months to three years in a bid to boost the ailing real estate sector. While the new visa is seen as a positive step forward, analysts say other factors weighing down the market are likely to continue to impede demand for the short term.

The decision to extend the residential visa for foreign home buyers was part of a raft of measures taken by the government to underpin economic growth. Property visas have been a controversial issue in the UAE for many years, as investors were often given conflicting information on the length of visas they would receive upon the purchase of a property.

In 2009, the government decided to address the confusion by decreeing that visas for foreign home buyers would be valid for only six months. The law required the visa holders to leave the country and return for renewals, and pay about Dhs2,000 for each renewal.

The government also set a minimum property price of Dhs1m for eligibility for the visa. Many analysts believe the implementation of this law further deepened the Dubai’s real estate slump that saw property values in the emirate fall by more than half since peaking in 2008.

Qatar seen as catalyst

Business leaders in the UAE have been urging the government to revise the visa law to help kick-start the market, and new hope emerged earlier this year when Qatar liberalised its rules on foreign ownership of property.

By deciding last week to extend the visa to three years, the government has taken a positive step to support the market, analysts say, but they note that many details of the new law have yet to be revealed.

“Talk of the three-year visa has been in the market for some time and is admittedly a step in the right direction,” said Chet Riley, an analyst with Nomura Securities. “Ultimately the re-sale market should strengthen and a three-year hold period should protect capital somewhat, especially where rents have settled.”

Elaine Jones, CEO of Asteco Property Management, agrees that the new law is welcome news for the property market. “We see the new visa law as being an extremely positive step for those who have already purchased property and as an incentive/confirmation to those who have stepped back from purchasing due to the issues surrounding the investor visa and the freedom to reside in any property they may buy,” she told AMEInfo.com.

Details need to be ironed out

However, both experts cautioned that the requirements of the new law have yet to be revealed. “Before we take the leap of faith however, there are no details beyond the headlines – this will be seen positively and the market will react accordingly, but there is a lot of work to do to shore up confidence across the direct real estate market,” Riley said.

“We assume the same limitations apply (ie, minimum spend of Dhs1m, passive income of Dhs10,000/month, which was a red-light for many prospective purchasers),” Riley said. “There are a number of other conditions that must be met, potentially making it a relatively onerous visa in our view, versus other free zone options.”

Jones noted that that the minimum property value of Dhs1m for properties in the UAE could be challenging for some buyers as prices have dropped considerably over the past few years.
The experts also predicted that market dynamics – namely oversupply – will continue to impede investor sentiment, thus curbing demand in the short to medium term.

Still, the new requirements could mark the beginning of a gradual turnaround in the market. “Ultimately the re-sale market should strengthen and a three-year hold period should protect capital somewhat, especially where rents have settled,” Riley said. “Real estate in the UAE is still an opaque market and regulations are never locked in stone, as history has proven, but three years gives some stability to a finely balanced market in our view.”

Originally Published On: www.ameinfo.com – Original Article Here

Published August 28th, 2011 – 09:06 GMT

The Arab League announced that its Secretary-General Nabil al-Arabi will urgently travel to Damascus carrying an initiative to resolve the crisis in Syria. The pan-Arab body has not revealed the details of this initiative, which comes after the deaths of more than 2000 people in a wave of unprecedented protests against the Syrian regime, which began in mid-March.

A statement by the League, issued after an emergency meeting of the Council of Arab foreign ministers, said that “the Arab Ministers requested the Secretary-General to undertake an urgent mission to Damascus, and introduce to the Syrian leadership the Arab initiative to resolve the crisis.”

The statement did not specify the content of this initiative and did not specify the dates of the visit in Syria, but called to “put an end to the bloodshed before it is too late.”

The Arab ministers in their statement expressed “concern and dismay at what the Syrian arena is witnessing which includes serious developments that have led to thousands of victims – dead and wounded – from the sons of the Syrian people.”

And at the opening of this ministerial meeting, it was stressed that the use of violence against the Arab uprisings does not work, in a clear reference to the situation in Syria.

On the ground, Syrian activists said that the army surrounded about 5000 demonstrators in Sabka as massive demonstrations were held in the center of Kfar Sousse and Maydan in Damascus area and another in Palmyra. News agencies reported about mass protests after prayers on Saturday night in the neighborhood Alklasah in Aleppo. Syrian forces opened fire on protesters in Harasta Hmouria and Erbeen in Damascus countryside.

Originally Published On: www.albawaba.com – Original Article Here

DIFF is held in association with Dubai Studio City. Dubai Duty Free, Dubai International Financial Centre, Dubai Pearl, Emirates Airline and Madinat Jumeirah, the home of the Dubai International Film Festival, are the principal sponsors of DIFF. The Festival is supported by the Dubai Culture & Arts Authority. 

Originally Published On: www.albawaba.com – Original Article Here

Published August 25th, 2011 – 10:24 GMT

Lebanese artist Razan Moughrabi has returned to the scenes after a prolonged absence due to the release of a scandalous video on YouTube. Razan will be starring in a new Egyptian film titled “November 25”, which is a temporary title for the film until another name for it is decided on.

The film is a social romance and is created and produced by Hani William and will be directed by Ehab Lam’i.  Prominent Egyptian actor Khaled Abu Al Naja will star in the film alongside Razan.

Originally Published On: www.albawaba.com – Original Article Here

Published August 24th, 2011 – 08:02 GMT

Defeated Libyan leader Muammar Gaddafi has vowed “martyrdom or victory” in an audio message broadcast on a local Tripoli radio station on Wednesday. The hiding leader, whose whereabouts are unknown, said he would fight to the last drop of blood against the “aggression.” He also vowed t return to Tripoli.

This came after rebels stormed his compound in Tripoli.

Pro-Gaddafi al-Urubah TV said Gaddafi, who is wanted by the International Criminal Court for crimes against humanity, said his forces made a “tactical” retreat from the Bab al-Aziziya complex.

Gaddafi said NATO conducted 64 strikes against his complex.

Meanwhile, government spokesman Musa Ibrahim promised Libya would turn into a “burning volcano and a fire under the feet of the invaders,” in an interview with Al-Urubah. According to him, 6,000 volunteers had entered Libya to join Gaddafi forces, which continued to attack rebel-held towns with rockets on Wednesday.

Originally Published On: www.albawaba.com – Original Article Here

Two new reports on Dubai’s residential market show that prices continued to fall in most areas of the emirate in the first quarter of this year, but there are signs that prices are beginning to stabilise in some neighbourhoods, especially in the higher end of the sector.

With nearly 8,000 new units being completed in the first quarter, the overall residential market in Dubai will continue to be oversupplied and prices are expected to slide even further over the remainder of 2011, Jones Lang Lasalle said in its Dubai Real Estate Market Overview Q1 2011.

A further 20,000 units are expected to be completed by the end of this year, bringing the total residential stock to 338,000. Villa prices fell around 6% across the emirate in the first quarter to Dhs883 per square foot, JLL said. However, the report emphasized that there are pockets of stabilization within Dubai’s high-end residential sector. “Lending will remain a key factor in the recovery,” the report noted. “The residential market will likely see improved lending during 2011 as more banks are injecting liquidity into the mortgage market.

New data from Cluttons also finds that high end villas are performing better than the rest of the market. “Villa developments such as Arabian Ranches, Meadows and Palm Jumeirah have seen little to no movement over the last three months, which bodes well for the recovery,” the property consultancy said. “Other villa locations, such as Victory Heights and Motor City have seen moderate drops of 3.6 % down from Q4 2010.”

Residential real estate transaction levels were higher in January and February as financing became more available, with mortgage rates now available for as little as 4.99%, Cluttons noted. Similar to villas, apartments at the lower end of the market are seeing the largest decreases, with prices in areas such as Discovery Gardens and International City falling by 8.9%, Cluttons said. By comparison, units in high-end locations such as Dubai Marina, Old Town and the Palm Jumeirah saw price drops of 3.7% during the same period, reflecting a “flight to quality”.

As new supply is added, apartments are likely to represent 79% of the residential stock in Dubai by the end of the year, JLL said.

Apartment leases drop 8%-10% from Q4 2010

On the rental side, Cluttons said that apartment leases dropped by between 8%-10% from Q4 2010. “The villa rental market has proved to be slightly more resilient in the more established freehold areas but is expected to soften as we move into the summer,” the consultancy said. “Villa prices and rentals are expected to fall in some areas due to the ever-increasing supply of notable new freehold units in developments such as The Villa, Falcon City, Sports City and Jumeirah Village.”

Cluttons said that the new developments’ lack of amenities and infrastructure was curbing their demand, while at the same time putting pressure on prices in other areas.

On a positive note, Qatar’s move to liberalise its visa regulations could put more pressure on the UAE to implement similar changes, which would provide a major boost for Dubai’s residential market, JLL said.

Originally Published On: www.ameinfo.com – Original Article Here

Published August 29th, 2011 – 09:18 GMT

Eight Israelis, including five policemen, were injured early Monday when a Palestinian crashed a stolen taxi into a group of people in central Tel Aviv then attacked them and passers-by with a knife, a police spokeswoman said.

According to Israeli reports, the attacker was a young Palestinian from the West Bank city of Nablus. He stole a taxi in Tel Aviv, slightly injuring the driver before throwing him out of the car, spokeswoman Louba Samri told AFP.

The assailant got out of the car and attacked passers-by and the guards wounding four people, Samri said. Two were severely wounded.

Originally Published On: www.albawaba.com – Original Article Here

Published August 27th, 2011 – 11:13 GMT

Syrian singer Asalah Nasri is preparing to record a new song titled “Ah Lao Hal Kursi Bihki” (Only if this chair can speak), which is her special dedication to demonstrators and revolutionaries in Syria, who are calling for the resignation of President Bashar Al Asad and his government.

The song talks about the injustice practiced by Bashar and his government and the cruel punishments they are imposing on protesters who are calling for reform and demanding to live in a democratic country where their basic rights are practiced.

The song is composed by Asalah and distributed by Hussein Al Najar, and is expected to be aired during the upcoming Muslim holiday Eid Al Fitr, which comes directly after the holy month of Ramadan.

Asalah has been crucially attacked in the recent period for her support of revolutionaries and publicly opposing President Bashar Al Asad. Asalah has been considered by many to be a traitor and the most recent attack against her was by Syrian actress Raghda, who said that Asalah had sold her blood and country.

Originally Published On: www.albawaba.com – Original Article Here

Published August 29th, 2011 – 14:33 GMT

Syrian security forces on Monday raided a northern village Monday, killing at least one person and injuring many others, activists said. According to the AP, the operations in Sarameen in the northern Idlib province were accompanied by similar raids in the village of Heet near the border with Lebanon, along with a military buildup outside the central town of Rastan, near Homs.

Meanwhile, the prime minister of Turkey warned Syrian president Bashar Assad that his regime could face a demise like those in Tunisia, Egypt and Libya if the violent suppression of protests continues.

“The only way out is to immediately silence arms and to listen to the people’s demands,” said Prime Minister Recep Tayyip Erdogan of Turkey. “We have been watching the fate of those who did not chose this path in the past few months in Tunisia, in Egypt — and now in Libya — as a warning and with sadness.”

“Demands for democracy and freedom are the people’s just demands. In today’s world, there is no place for one-man rule, for autocratic regimes and closed communities,” he said.

Originally Published On: www.albawaba.com – Original Article Here

Published August 25th, 2011 – 10:27 GMT

Prominent Syrian actor Khaled Taja revealed that he is currently writing his life’s memoirs to be turned into a new television drama. Khaled stated that he has nominated Syrian actors Basel Khayat and Tayem Hassan as suitable candidates to play his character, but noted he prefers that the role be given to Basel since his character is more like his (Khaled).

Khaled stated that the memoirs will include events that occurred over a 72 year period from the moment of his birth until today. The actor added that events will focus the environment he grew up in and most important occurrences that led to him becoming an actor and becoming what he is today.

The drama will also tackle the different love affairs that Khaled experienced throughout his life.

Originally Published On: www.albawaba.com – Original Article Here