The office sector has seen a particularly marked widening in yields between prime and secondary real estate over the past year, Knight Frank’s report noted.Reem Mohammed / The National
The office sector has seen a particularly marked widening in yields between prime and secondary real estate over the past year, Knight Frank’s report noted.Reem Mohammed / The National
The office sector has seen a particularly marked widening in yields between prime and secondary real estate over the past year, Knight Frank’s report noted.Reem Mohammed / The National
The office sector has seen a particularly marked widening in yields between prime and secondary real estate over the past year, Knight Frank’s report noted.Reem Mohammed / The National

New Abu Dhabi law to promote public-private partnerships as part of Dh50bn plan


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Abu Dhabi enacted a new law on Thursday designed to encourage private sector involvement in housing, infrastructure and education projects in the capital, as part of the three-year Dh50 billion "Ghadan 21" programme to boost the economy.

The law formalises the creation of a government body set up last year to drive foreign direct investment – the Abu Dhabi Investment Office – and gives it an extra mandate – to lead the UAE's first public-private partnership programme.

From this year, the office will work with government departments to identify key projects that will benefit from a PPP model to bring them to fruition.

It intends to launch "at least three" significant PPP schemes for tender to the private sector by this summer, Elham Alqasim, acting chief executive of Adio, told The National.  

“The office will act as a permanent interface for the private sector to interact with government for all of its needs and throughout the PPP tender process,” she said.

She declined to reveal further details about what the first projects will be, but said they fall within the categories of housing, infrastructure, transport and education.

The exact value of the projects is to be determined during the commercial bidding processes, but they likely amount to billions of dirhams of investment. “We have a very healthy pipeline,” Ms Alqasim said.

The law enacted on Thursday sets out a general framework for the practice of PPPs, but the terms of each deal – for instance, whether there will be payment guarantees from the government to reduce financial risk to investors and incentivise their involvement – would be worked out on a case-by-case basis.

The business models that materialise are expected to range from build-only schemes, to build, operate and maintain agreements whereby the private sector takes a long-term stake in the scheme. Adio is targeting both local and international businesses.

“We are looking at examples of similar transactions around the world – proven models of successful PPP schemes that have provided higher-quality outcomes for citizens than they may have otherwise,” Ms Alqasim said.

The oil-rich Arabian Gulf states are eyeing new ways of growing their private sectors to reduce dependency on hydrocarbons revenues, create sustainable routes to employment and provide more efficient services to citizens.

In Abu Dhabi, the PPP programme will form a key plank of ADIO’s strategy to increase foreign direct  investment (FDI) to Abu Dhabi, and the wider Emirates, in the coming years. The UAE captured 37 per cent of total FDI flows into the Middle East and North Africa region in 2017, with FDI stock rising to $130bn that year from $64bn in 2010, according to figures from ADIO.

But against the backdrop of a highly competitive global and regional business environment, the UAE wants to increase this further in the years ahead.

“The formal establishment of ADIO is an important milestone for Abu Dhabi’s economic development,” said Saif Mohamed Al Hajeri, chairman of Abu Dhabi Department of Economic Development, in a statement on Thursday.

With a growing, diversified economy, it is essential we continue to attract inward investment from international players.

Under the law, the office’s activities will expand to include the implementation of new levers to accelerate economic growth, such as cash and non-cash incentives for priority sectors such as technology, tourism and advanced manufacturing.

Already some initiatives have been introduced. In December, Abu Dhabi exempted all businesses issued new licences by the emirate from local fees for two years, to boost competitiveness and improve ease of doing business.

A social support programme to help low-income Emirati households, and a working capital credit guarantee scheme that will give SMEs access to Dh10bn of financing over the next three years from local banks at reduced interest rates, are two other examples.

These and the PPP initiative all feed into the three-year Ghadan 21 programme, which translates as ‘Tomorrow 21’ in English. It is the banner name for a series of reforms aimed at stimulating investment, creating jobs, encouraging innovation and improving the quality of life, as well as cementing the UAE as a growing world power.

The Dh50bn project, which has 50 initiatives focused on four areas – business and investment, society, knowledge and innovation, and lifestyle – was set in motion by Sheikh Mohammed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, last year and continues to gather pace.

The government aims to invest the first tranche of the Dh50bn – a targeted Dh20bn – in 2019, and is currently working on a detailed strategy for execution with more details set to be revealed in the coming weeks, according to Ms Alqasim.

“We want to boost economic growth and competitiveness by executing an ambitious, targeted FDI strategy and driving partnership across the private and public sectors,” she said.

The 10-step Ghadan programme

  1. Permanent home licences that will except the requirement of having an office or work space for two years.
  2. Instant licensing for most commercial license types and all Government services.
  3. New speedy payments for private sector contractors and a review of fines incurred by delays they cause.
  4. A cost-cutting review of building regulations for infrastructure, residential properties, commercial and industrial sectors.
  5. The establishment of Abu Dhabi Accelerators and Advanced Industries Council, called Ghadan, to identify new technologies and investments that will boost the future economy.
  6. Developing eco-tourism, creating camping villages and areas for recreational sports areas.
  7. Promoting partnerships between the public and private sectors and accelerating projects between the two by the end of 2018.
  8. Creating at least 10,000 jobs for Emiratis in the private and public sectors over the next five years.
  9. Encouraging and organising local production and supporting SMEs to boost their competitiveness locally and regionally.
  10. Dual licences for companies in Abu Dhabi free zones to allow them to work outside the free zones and bid for government tenders.
Benefits of first-time home buyers' scheme
  • Priority access to new homes from participating developers
  • Discounts on sales price of off-plan units
  • Flexible payment plans from developers
  • Mortgages with better interest rates, faster approval times and reduced fees
  • DLD registration fee can be paid through banks or credit cards at zero interest rates
Test

Director: S Sashikanth

Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan

Star rating: 2/5

Citizenship-by-investment programmes

United Kingdom

The UK offers three programmes for residency. The UK Overseas Business Representative Visa lets you open an overseas branch office of your existing company in the country at no extra investment. For the UK Tier 1 Innovator Visa, you are required to invest £50,000 (Dh238,000) into a business. You can also get a UK Tier 1 Investor Visa if you invest £2 million, £5m or £10m (the higher the investment, the sooner you obtain your permanent residency).

All UK residency visas get approved in 90 to 120 days and are valid for 3 years. After 3 years, the applicant can apply for extension of another 2 years. Once they have lived in the UK for a minimum of 6 months every year, they are eligible to apply for permanent residency (called Indefinite Leave to Remain). After one year of ILR, the applicant can apply for UK passport.

The Caribbean

Depending on the country, the investment amount starts from $100,000 (Dh367,250) and can go up to $400,000 in real estate. From the date of purchase, it will take between four to five months to receive a passport. 

Portugal

The investment amount ranges from €350,000 to €500,000 (Dh1.5m to Dh2.16m) in real estate. From the date of purchase, it will take a maximum of six months to receive a Golden Visa. Applicants can apply for permanent residency after five years and Portuguese citizenship after six years.

“Among European countries with residency programmes, Portugal has been the most popular because it offers the most cost-effective programme to eventually acquire citizenship of the European Union without ever residing in Portugal,” states Veronica Cotdemiey of Citizenship Invest.

Greece

The real estate investment threshold to acquire residency for Greece is €250,000, making it the cheapest real estate residency visa scheme in Europe. You can apply for residency in four months and citizenship after seven years.

Spain

The real estate investment threshold to acquire residency for Spain is €500,000. You can apply for permanent residency after five years and citizenship after 10 years. It is not necessary to live in Spain to retain and renew the residency visa permit.

Cyprus

Cyprus offers the quickest route to citizenship of a European country in only six months. An investment of €2m in real estate is required, making it the highest priced programme in Europe.

Malta

The Malta citizenship by investment programme is lengthy and investors are required to contribute sums as donations to the Maltese government. The applicant must either contribute at least €650,000 to the National Development & Social Fund. Spouses and children are required to contribute €25,000; unmarried children between 18 and 25 and dependent parents must contribute €50,000 each.

The second step is to make an investment in property of at least €350,000 or enter a property rental contract for at least €16,000 per annum for five years. The third step is to invest at least €150,000 in bonds or shares approved by the Maltese government to be kept for at least five years.

Candidates must commit to a minimum physical presence in Malta before citizenship is granted. While you get residency in two months, you can apply for citizenship after a year.

Egypt 

A one-year residency permit can be bought if you purchase property in Egypt worth $100,000. A three-year residency is available for those who invest $200,000 in property, and five years for those who purchase property worth $400,000.

Source: Citizenship Invest and Aqua Properties

The specs

Engine: 2.0-litre 4cyl turbo

Power: 261hp at 5,500rpm

Torque: 405Nm at 1,750-3,500rpm

Transmission: 9-speed auto

Fuel consumption: 6.9L/100km

On sale: Now

Price: From Dh117,059