A rendering of a streetscape in the completed Modon City South project 30km from Abu Dhabi city. Courtesy of Modon Properties
A rendering of a streetscape in the completed Modon City South project 30km from Abu Dhabi city. Courtesy of Modon Properties
A rendering of a streetscape in the completed Modon City South project 30km from Abu Dhabi city. Courtesy of Modon Properties
A rendering of a streetscape in the completed Modon City South project 30km from Abu Dhabi city. Courtesy of Modon Properties

Modon awards Dh1.93bn of contracts at Riyadh City South


Michael Fahy
  • English
  • Arabic

Modon Properties, the developer owned by Abu Dhabi's state holding firm ADQ, awarded the final two infrastructure contracts for its Riyadh City South project with a value of Dh1.83 billion.

The award of infrastructure works for phases three and four at the new city, which is being developed in partnership with the Abu Dhabi Housing Authority, brings the total value of contracts awarded for all five phases to Dh5.83bn, the developer said in a statement.

“We have a detailed construction schedule in place for the completion of all five phases of the project and are committed to continuing to contribute to the transformation of Abu Dhabi’s housing sector by delivering integrated and modern residential experiences in line with the future vision for Abu Dhabi,” the company's chairman, Abdulla Al Sahi, said.

The work will take three years to complete, he added.

Phases three and four cover a total area of around 15.8 million square metres, or 45 per cent of the total project area. Phase three is just over 6.15 million sq m and phase four covers 9.65 million sq m.

The contracts have been awarded to Tristar Engineering & Construction and Nurol, and the work involves the construction of all roads, utilities and drainage systems. The two phases cover 5,438 residential plots, 5,326 villas, 112 townhouses, seven schools, four nurseries, one hospital, six medical clinics, 30 mosques, a civil defence centre, three fuel stations, two government buildings, 11 social service centres and 24 commercial plots.

In total, the five phases will house more than 14,765 residential plots, 133 commercial plots, 12,896 villas and 1,869 townhouses. The city will also be home to 18 schools, two universities, a hospital, 12 medical clinics, 84 mosques, five civil defence centres, nine fuel stations, nine government facilities and 26 social service centres.

The contract for the first phase of infrastructure works at Riyadh City South was awarded in September last year, and the second and fifth phases were awarded in February.

The Riyadh City project is being built 30 kilometres from the UAE capital in areas previously known as South Shamkha and Al Wathba North. In total, it covers 80 square kilometres of land, which is equivalent to 85 per cent of the footprint of Abu Dhabi Island.

“The Riyadh City South project is one of the most important housing projects in the emirate of Abu Dhabi, and it will contribute significantly to the development of the housing sector in the UAE’s capital," said Jaber Al Suwaidi, general director of the Crown Prince Court of Abu Dhabi and chairman of the Abu Dhabi Housing Authority.

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What drives subscription retailing?

Once the domain of newspaper home deliveries, subscription model retailing has combined with e-commerce to permeate myriad products and services.

The concept has grown tremendously around the world and is forecast to thrive further, according to UnivDatos Market Insights’ report on recent and predicted trends in the sector.

The global subscription e-commerce market was valued at $13.2 billion (Dh48.5bn) in 2018. It is forecast to touch $478.2bn in 2025, and include the entertainment, fitness, food, cosmetics, baby care and fashion sectors.

The report says subscription-based services currently constitute “a small trend within e-commerce”. The US hosts almost 70 per cent of recurring plan firms, including leaders Dollar Shave Club, Hello Fresh and Netflix. Walmart and Sephora are among longer established retailers entering the space.

UnivDatos cites younger and affluent urbanites as prime subscription targets, with women currently the largest share of end-users.

That’s expected to remain unchanged until 2025, when women will represent a $246.6bn market share, owing to increasing numbers of start-ups targeting women.

Personal care and beauty occupy the largest chunk of the worldwide subscription e-commerce market, with changing lifestyles, work schedules, customisation and convenience among the chief future drivers.

Buy farm-fresh food

The UAE is stepping up its game when it comes to platforms for local farms to show off and sell their produce.

In Dubai, visit Emirati Farmers Souq at The Pointe every Saturday from 8am to 2pm, which has produce from Al Ammar Farm, Omar Al Katri Farm, Hikarivege Vegetables, Rashed Farms and Al Khaleej Honey Trading, among others. 

In Sharjah, the Aljada residential community will launch a new outdoor farmers’ market every Friday starting this weekend. Manbat will be held from 3pm to 8pm, and will host 30 farmers, local home-grown entrepreneurs and food stalls from the teams behind Badia Farms; Emirates Hydroponics Farms; Modern Organic Farm; Revolution Real; Astraea Farms; and Al Khaleej Food. 

In Abu Dhabi, order farm produce from Food Crowd, an online grocery platform that supplies fresh and organic ingredients directly from farms such as Emirates Bio Farm, TFC, Armela Farms and mother company Al Dahra. 

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Who's who in Yemen conflict

Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory

Why it pays to compare

A comparison of sending Dh20,000 from the UAE using two different routes at the same time - the first direct from a UAE bank to a bank in Germany, and the second from the same UAE bank via an online platform to Germany - found key differences in cost and speed. The transfers were both initiated on January 30.

Route 1: bank transfer

The UAE bank charged Dh152.25 for the Dh20,000 transfer. On top of that, their exchange rate margin added a difference of around Dh415, compared with the mid-market rate.

Total cost: Dh567.25 - around 2.9 per cent of the total amount

Total received: €4,670.30 

Route 2: online platform

The UAE bank’s charge for sending Dh20,000 to a UK dirham-denominated account was Dh2.10. The exchange rate margin cost was Dh60, plus a Dh12 fee.

Total cost: Dh74.10, around 0.4 per cent of the transaction

Total received: €4,756

The UAE bank transfer was far quicker – around two to three working days, while the online platform took around four to five days, but was considerably cheaper. In the online platform transfer, the funds were also exposed to currency risk during the period it took for them to arrive.

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