Here is a rundown of ten top stories – from floating hotels, real estate price hike, new unemployment insurance, labour law – you might have missed this week on Arabian Business.
Dubai real estate prices up 90 percent in prime locations over last 12 months: Report
The price of Dubai real estate in prime locations has shot up over the past year, rising as much as 88.8 percent, research from property consulting firm Knight Frank showed.
“Prime residential values in Dubai continue to strengthen, growing by 29 percent in Q3 alone, fuelled by a persistent deluge of UHNWI individuals who are zeroing in on Dubai’s premier districts, in search of second homes. This trend marks a significant departure to the emirate’s two previous market cycles, where the overriding flavour of buyers was linked to buy-to-let or buy-to-flip purchases,” Faisal Durrani, Knight Frank partner and head of Middle East research said.
In some locations, such as Palm Jumeirah, prices have risen over 100 percent compared to the start of the pandemic. Sales of ultra-prime houses, which refers to property priced at over $10 million, have also hit new heights, with 152 registered so far this year, eclipsing 2021’s 93. Of these 152 deals, 93 took place in the third quarter of 2022 alone.
GEMS Education for sale: Could new owners raise school fees?
As potential buyers circle around the UAE’s biggest schools operator GEMS Education, experts are warning that the rules over school fee caps will need urgent clarification – or GEMS pupils could face fee rises.
Arabian Business revealed last month that GEMS Education is exploring a potential $6 billion stake sale, and that new owners could ultimately take full control. Some of the world’s biggest education providers in China and the USA have been touted as potential buyers.
But whether a change in ownership will mean a change in fees is less clear. In March this year, the Knowledge and Human Development Authority (KHDA) announced that schools would not be allowed to raise tuition fees this year. The last permitted fee increase was for the academic year 2019-20.
UAE Unemployment Insurance Scheme launched: AED20k cover
The Ministry of Human Resources and Emiratisation (MoHRE) announced the launch of the ‘Unemployment Insurance Scheme’ for government and private sector employees, on Tuesday.
The compensation will be paid on a monthly basis, calculated on 60 percent of the employee’s basic salary and subject to a maximum of AED20,000 per month, for a period of three months from the date of unemployment.
The new law applies to all employees in the federal government and the private sector in the UAE, excluding investors, domestic helpers, part-time employees, retirees who have a retirement pension and those under the age of 18.
UAE National Bonds launches Golden Pension Plan for expats, nationals
National Bonds launched a new initiative, on Tuesday, the Golden Pension Plan. The plan is designed to accommodate companies with a large employee base and provide companies with a customisable solution with flexibility on the type of financial care to be arranged for the employees, according to the announcement.
National Bonds is owned by the Investment Corporation of Dubai of which Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum is the Chairman.
Companies will be able to contribute a lump sum amount or monthly deposits, from or on behalf of the employee. The end-of-service amount will be put in the Golden Pension Plan scheme as per the agreed terms and features, prizes and rewards are also a part of the plan for customers.
UAE played ‘key role’ in Ukraine-Russia prisoner exchange
The UAE has played a key role in the prisoner exchanges between Russia and Ukraine, WAM reported.
This comes after UAE President Sheikh Mohamed bin Zayed Al Nahyan and Russian President Vladimir Putin met one another on Tuesday to discuss the bilateral ties between the two nations.
Putin expressed Russia’s appreciation for the UAE’s efforts, noting that they are a testament to its readiness to support mediation efforts, adding that the UAE can play a “significant” role in efforts to reach a resolution in his war in Ukraine, according to Bloomberg.
“President Putin provided a detailed brief to His Highness Sheikh Mohamed on the situation at the Zaporozhye Nuclear Power Plant and on Russia’s efforts to maintain nuclear security,” WAM said.
Floating hotels, world’s largest aquarium, islands: 7 upcoming UAE mega-projects to watch for in 2023
UAE is home to the world’s tallest tower, the Burj Khalifa, one of the world’s largest malls, The Dubai Mall, and some of the most beautiful buildings in the world, such as the Museum of the Future.
However, the nation’s feats are not just stopping there. That being said, here is a closer look at all the upcoming projects set to open in 2023.
UAE employment law: three-year limit on private sector contracts scrapped
The UAE has lifted a three-year limit on the duration of fixed-term employment contracts within the private sector.
The Ministry of Human Resources and Emiratisation (MoHRE) announced amendments to UAE employment law and the decree-law on the Regulation of Employment Relationship.
The amendments update the labour laws brought into force in the UAE in February.
The updated law states that fixed-term contracts in the private sector must still have a defined duration, but the UAE law will no longer insist on a time limit of how long that can be.
The MoHRE said contracts can be renewed as long as both parties agree to the conditions.
Revealed: New hotels to launch ahead of FIFA World Cup Qatar 2022 with 1.5 million fans set to visit
The 2022 FIFA World Cup will attract an estimated 1.5 million visitors to Qatar during the four-week celebration, continuing the sport’s longstanding tradition of being one of the most popular worldwide sporting competitions.
Over 80 percent of rooms had been taken up by the FIFA organisation and government, multiple initiatives have been taken by the country to accommodate over a million tourists that are expected to visit during the World Cup.
Here are some of the new hotels opening to cater to this unprecedented demand.
LuLu Group heads for $5bn stock market float
The rush for an initial public offering (IPO) by companies in the UAE is gaining momentum, with hypermarket-to-hospitality chain Lulu Group International confirming its plans to get listed on the Abu Dhabi Securities Exchange (ADX) in 2023.
A senior executive of the group told WAM that the conglomerate was making steady progress with its IPO plans to list shares on ADX next year.
The company has 239 stores in 23 countries and employs more than 60,000 people. Any stock market float is likely to command a valuation of at least $5 billion.
LuLu Group’s statement comes following the recent hugely successful IPO issue of UAE-based healthcare player Burjeel Group.
Drones to deliver parcels in UAE
Drones will deliver parcels to various sites across the UAE capital Abu Dhabi, in the first extensive trial of the futuristic project.
The project is being led by Maqta Gateway, the digital arm of AD Ports Group, along with Emirates Post Group and SkyGo.
Maqta Gateway said it will deploy its integrated digital marketplace, Margo Hub, to facilitate online transactions between customers; Emirates Post Group will manage the service and provide tracking and status updates, while SkyGo will provide drone solutions.
The trials will begin with short-range journeys with documents delivered to different Emirates Post sites in Abu Dhabi. Longer-range trials will follow after initial data assessment.
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