Azizi Developments, a Dubai-based real estate developer, plans to expand its hospitality business outside the UAE, as it grows its portfolio on the back of improving global economic sentiment.
“In future, Azizi will go for hotel business in other countries,” said Mirwais Azizi, chairman and owner of the Azizi Group, which counts banking and investment among its operations as well as real estate development.
"We are looking at markets such as the Seychelles, Maldives and India – countries where there are high numbers of tourists," he said in an interview with The National at the Dubai Property Festival on Monday.
Azizi’s international team is working on early-stage plans and the group is targeting an announcement in the second half of this year, Mr Azizi said. He declined to reveal further details of any prospective deal, including the location.
The UAE property market has slowed in recent years on the back of a three-year oil slump that caused job losses and dampened demand, leading to ongoing declines in residential sales and rental prices. Analysts predict the market will continue to decline, at a slower rate, for much of 2018.
The sluggish conditions have prompted some developers to diversify their operations, with forays into international markets – such as Dubai’s largest real estate company Emaar Properties’ planned schemes in North Africa and Europe – and expansions into hospitality and other sub-sectors.
Last September, Dubai-based Union Properties created two fully owned subsidiaries in retail and hospitality – Union Malls and Al Etihad Hotel Management, the latter of which will develop and manage luxury hotels and furnished residences in Dubai.
Azizi entered the hospitality sector in April 2016 with its first serviced apartments project, Candace at Dubai’s Al Furjan, which the company said at the time was a Dh460 million scheme to be operated by Candace Hotels and Resorts.
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Read more:
[ Dubai’s Azizi Developments eyes Abu Dhabi projects ]
[ Abu Dhabi rental declines to slow in 2018, says Core Savills ]
[ Dubai house prices, rents drop in first quarter of 2018 ]
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Mr Azizi told The National the group's hospitality development pipeline is full until 2020, with no plans to announce further schemes in the UAE or elsewhere until after Expo 2020 in Dubai. However, across all sectors, Azizi Developments' chief executive Farhad Azizi told The National last September the group planned to expand its presence to other emirates from 2018, including in Abu Dhabi, Sharjah and Ajman, where it already has land.
Azizi is currently marketing two community schemes in Meydan, close to Downtown Dubai – Azizi Riviera and Azizi Victoria.
Other projects include the newly completed Azizi Mirage 1 in Dubai Studio City, Azizi Grand in Dubai Sports City, and three residential buildings in Meydan Avenue, as well as a string of off-plan projects.
The developer is financing the construction of these developments through a combination of historic and current unit sales, together with around 10-15 per cent bank financing.
While the group is in “continuous talks” with banks, there are no plans to seek additional debt financing in 2018, Mr Azizi said.
The biog
Favourite film: The Notebook
Favourite book: What I know for sure by Oprah Winfrey
Favourite quote: “Social equality is the only basis of human happiness” Nelson Madela. Hometown: Emmen, The Netherlands
Favourite activities: Walking on the beach, eating at restaurants and spending time with friends
Job: Founder and Managing Director of Mawaheb from Beautiful Peopl
The Dictionary of Animal Languages
Heidi Sopinka
Scribe
Honeymoonish
Director: Elie El Samaan
Starring: Nour Al Ghandour, Mahmoud Boushahri
Rating: 3/5
COMPANY PROFILE
Name: Xpanceo
Started: 2018
Founders: Roman Axelrod, Valentyn Volkov
Based: Dubai, UAE
Industry: Smart contact lenses, augmented/virtual reality
Funding: $40 million
Investor: Opportunity Venture (Asia)
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
The specs
Engine: 2.0-litre turbocharged 4-cyl
Transmission: 8-speed auto
Power: 300bhp (GT) 330bhp (Modena)
Torque: 450Nm
Price: Dh299,000 (GT), Dh369,000 (Modena)
On sale: now
THE SWIMMERS
Director: Sally El-Hosaini
Stars: Nathalie Issa, Manal Issa, Ahmed Malek and Ali Suliman
Rating: 4/5
T20 World Cup Qualifier fixtures
Tuesday, October 29
Qualifier one, 2.10pm – Netherlands v UAE
Qualifier two, 7.30pm – Namibia v Oman
Wednesday, October 30
Qualifier three, 2.10pm – Scotland v loser of qualifier one
Qualifier four, 7.30pm – Hong Kong v loser of qualifier two
Thursday, October 31
Fifth-place playoff, 2.10pm – winner of qualifier three v winner of qualifier four
Friday, November 1
Semi-final one, 2.10pm – Ireland v winner of qualifier one
Semi-final two, 7.30pm – PNG v winner of qualifier two
Saturday, November 2
Third-place playoff, 2.10pm
Final, 7.30pm
MATCH INFO
Kolkata Knight Riders 245/6 (20 ovs)
Kings XI Punjab 214/8 (20 ovs)
Kolkata won by 31 runs
If you go
The flights
There are various ways of getting to the southern Serengeti in Tanzania from the UAE. The exact route and airstrip depends on your overall trip itinerary and which camp you’re staying at.
Flydubai flies direct from Dubai to Kilimanjaro International Airport from Dh1,350 return, including taxes; this can be followed by a short flight from Kilimanjaro to the Serengeti with Coastal Aviation from about US$700 (Dh2,500) return, including taxes. Kenya Airways, Emirates and Etihad offer flights via Nairobi or Dar es Salaam.
Sour Grapes
Author: Zakaria Tamer
Publisher: Syracuse University Press
Pages: 176
Bert van Marwijk factfile
Born: May 19 1952
Place of birth: Deventer, Netherlands
Playing position: Midfielder
Teams managed:
1998-2000 Fortuna Sittard
2000-2004 Feyenoord
2004-2006 Borussia Dortmund
2007-2008 Feyenoord
2008-2012 Netherlands
2013-2014 Hamburg
2015-2017 Saudi Arabia
2018 Australia
Major honours (manager):
2001/02 Uefa Cup, Feyenoord
2007/08 KNVB Cup, Feyenoord
World Cup runner-up, Netherlands
2024 Dubai Marathon Results
Women’s race:
1. Tigist Ketema (ETH) 2hrs 16min 7sec
2. Ruti Aga (ETH) 2:18:09
3. Dera Dida (ETH) 2:19:29
Men's race:
1. Addisu Gobena (ETH) 2:05:01
2. Lemi Dumicha (ETH) 2:05:20
3. DejeneMegersa (ETH) 2:05:42