DUBAI // Families evacuated from the Tamweel Tower blaze say they now fear living in high-rises and are looking for new homes closer to the ground.
Many of the residents at the Jumeirah Lakes Towers building say they worry another fire could occur, and that this time the outcome could be more tragic.
"I would not wish to live in a tower again after what happened at Tamweel," said Ilham Laullami, from France, who was evacuated with her two children from their 24th-floor flat early on Sunday.
"It's not just the height but the issue of this exterior cladding which is a worry for us. If it's not possible for us to find a low-rise then I wouldn't want to move to a floor above third."
Ms Laullami is staying in a hotel apartment at a cost of Dh9,000 a month from her own pocket. The building's developer, Tamweel, says former tenants will be paid back from insurance.
Diane Saroukhan, from the US, is also looking for a flat on a lower floor. "I wouldn't want to live in a high-rise again because you just don't know what might happen," she said.
Tamweel offered Ms Saroukhan a one-bedroom flat in Discovery Gardens, but she decided to find a place in Dubai Marina.
"It just wasn't big enough for us because there is also my parents, our maid and we have a dog, which was not allowed," she said.
"I've managed to find a two-bedroom apartment on the second floor in the Marina, which we will stay in for the next month."
For Jane Bishop and her husband Jim, both from the UK, moving into a villa or ground-floor flat would be ideal, but possibly too expensive.
"I really like The Greens but I use the Metro to get to work in DIFC [Dubai International Financial Centre] and it would be too far to the station walk to during summer," said Mrs Bishop.
The couple are now at the Gloria Hotel Apartments and are thinking of staying there long term.
"Unfortunately we are on the 35th floor here and we used to be on the 12th floor at Tamweel Tower," Mrs Bishop said. "I would prefer to be on a much lower floor."
For John Cox, also from the UK, the risk of fire while living in a tower will always be there.
"We were on the 19th floor so that is a concern," Mr Cox said. "But we bought our apartment so we need to first find out what is going to happen with the repair work."
Pallav Pancholi, from India, also owns his flat and has not ruled out returning to towers as he believes low-rise buildings still have risks.
"I personally don't have an issue with living in a tower but I know many of other residents no longer wish to," Mr Pancholi said.
"But even in a four-storey building there is nothing to say a fire couldn't happen on the ground floor that would make it difficult for people to escape."
Property agents say low-rise property is available in The Greens and villa developments such as The Springs and Jumeirah Village Triangle.
"It's still too early to get feedback from tenants but in the same price range it is possible for people to find similar accommodation," said Salik Ashrafi, a property adviser with Taktical Realty.
Two-bedroom villas are available in The Springs for Dh120,000 and three-bedroom villas for Dh150,000, while villas in Jumeirah Village Triangle are between Dh120,000 and Dh130,000.
"These would be near JLT and in their budget range, and as of now there is availability," Mr Ashrafi said.
Kalpesh Sampat, the director of SPF Realty, said it was too early for the effects of the JLT fire to be noticeable in the market, although news about the blaze did prompt one client to turn down a 19th floor apartment.
"She said she'd prefer a lower floor and cited the JLT fire as a reason," Mr Sampat said.
"The immediate psychological impact would be that tenants look at low-rise housing, but in the long term owners should look at insuring their property and tenants at insuring the contents of their apartment."
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rtalwar@thenational.ae
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THE BIO
Ambition: To create awareness among young about people with disabilities and make the world a more inclusive place
Job Title: Human resources administrator, Expo 2020 Dubai
First jobs: Co-ordinator with Magrudy Enterprises; HR coordinator at Jumeirah Group
Entrepreneur: Started his own graphic design business
Favourite singer: Avril Lavigne
Favourite travel destination: Germany and Saudi Arabia
Family: Six sisters
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
UAE currency: the story behind the money in your pockets
Four reasons global stock markets are falling right now
There are many factors worrying investors right now and triggering a rush out of stock markets. Here are four of the biggest:
1. Rising US interest rates
The US Federal Reserve has increased interest rates three times this year in a bid to prevent its buoyant economy from overheating. They now stand at between 2 and 2.25 per cent and markets are pencilling in three more rises next year.
Kim Catechis, manager of the Legg Mason Martin Currie Global Emerging Markets Fund, says US inflation is rising and the Fed will continue to raise rates in 2019. “With inflationary pressures growing, an increasing number of corporates are guiding profitability expectations downwards for 2018 and 2019, citing the negative impact of rising costs.”
At the same time as rates are rising, central bankers in the US and Europe have been ending quantitative easing, bringing the era of cheap money to an end.
2. Stronger dollar
High US rates have driven up the value of the dollar and bond yields, and this is putting pressure on emerging market countries that took advantage of low interest rates to run up trillions in dollar-denominated debt. They have also suffered capital outflows as international investors have switched to the US, driving markets lower. Omar Negyal, portfolio manager of the JP Morgan Global Emerging Markets Income Trust, says this looks like a buying opportunity. “Despite short-term volatility we remain positive about long-term prospects and profitability for emerging markets.”
3. Global trade war
Ritu Vohora, investment director at fund manager M&G, says markets fear that US President Donald Trump’s spat with China will escalate into a full-blown global trade war, with both sides suffering. “The US economy is robust enough to absorb higher input costs now, but this may not be the case as tariffs escalate. However, with a host of factors hitting investor sentiment, this is becoming a stock picker’s market.”
4. Eurozone uncertainty
Europe faces two challenges right now in the shape of Brexit and the new populist government in eurozone member Italy.
Chris Beauchamp, chief market analyst at IG, which has offices in Dubai, says the stand-off between between Rome and Brussels threatens to become much more serious. "As with Brexit, neither side appears willing to step back from the edge, threatening more trouble down the line.”
The European economy may also be slowing, Mr Beauchamp warns. “A four-year low in eurozone manufacturing confidence highlights the fact that producers see a bumpy road ahead, with US-EU trade talks remaining a major question-mark for exporters.”
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Secret Nation: The Hidden Armenians of Turkey
Avedis Hadjian, (IB Tauris)