Stormont political leaders have flagged up the potential for Northern Ireland researchers to help boost international motor racing.

This came as First Minister Peter Robinson and Deputy First Minister Martin McGuinness began a five-day business mission to the United Arab Emirates and India.

The first leg of the trip saw discussions at Abu Dhabi’s Formula One race track on Yas Island, where the University of Ulster’s Sports Academy has been working in collaboration with the Automobile & Touring Club of the UAE (ATCUAE) to develop new standards within motor racing.

The talks were aimed at further development of their relationship, including the prospects for a jointly taught undergraduate sports management degree in the United Arab Emirates (UAE), which would be accredited by the university.

Mr Robinson said: “The opportunity for the co-delivery of an undergraduate course in sports management will further enhance Northern Ireland’s relationships in the Gulf region and fits in with the Executive’s strategy to increase internationalisation.” More info

Dec. 28 (Bloomberg) — The Abu Dhabi government agreed to buy assets valued at 16.8 billion dirhams ($4.57 billion) from Aldar Properties PJSC, the emirate’s biggest developer, to boost the company’s finances.

The government will purchase 760 residential units in the Al Raha Beach development and retire 5 billion dirhams of debt related to infrastructure on Yas Island, Aldar said in a statement today.

Developers in the United Arab Emirates are struggling to pay down debts after the credit crisis caused property values to plummet and drove speculators out of the market. Home prices in Abu Dhabi, the U.A.E. capital, may drop 30 percent more after declining as much as 55 percent from the market’s peak in mid- 2008, Dubai-based Rasmala Investment Bank Ltd. forecasted in October.

Aldar will receive 4.5 billion dirhams in the next two months as part of the agreement, and the balance will be paid over the next four years, according to the statement. The government also agreed to buy 5.7 billion dirhams of assets in Abu Dhabi’s city center, known as the Central Market.

More info

Viceroy Hotel Group has been selected as operator of the Yas Hotel on Yas Island in Abu Dhabi, the Emirate’s leading leisure and entertainment destination.  The hotel, owned by Aldar Properties, Abu Dhabi’s leading property development, investment and management company, will officially transition to Viceroy management immediately.

The Yas Hotel boasts 499 luxury rooms, with 75 suites, each at 531 square feet and above. The spaces are contemporary, fitted with custom-built pieces of furniture and specially made fabrics.  Floor to ceiling glass panels are installed throughout the guest accommodations, allowing for superb views of the water in the bedroom and natural light to filter in to the rain showers in the bathroom.

Located at the heart of the Yas Marina Circuit, home to the Formula 1™ Etihad Airways Abu Dhabi Grand Prix, the Yas Hotel welcomed its first guests for the inaugural race in 2009.  At that time, the property unveiled its unique design with incredible LED shroud, programmed to change colors and shades in different parts of the hotel.

Since then, the Yas Hotel has developed a reputation as one of the most iconic luxury hotels in Abu Dhabi, with world class amenities including a state of the art gym, luxury spa, two rooftop pools, eight international restaurants, two bars and ten meeting and board rooms.  The hotel has welcomed guests for high-level governmental meetings, awards ceremonies and corporate conferences as well as being recognized as the “World’s Best New Hotel” at the World Travel Awards in 2010.

“We are thrilled to add this incredible property to our expanding portfolio of luxury hotels” says Brad Korzen, CEO of Viceroy Hotel Group. “Abu Dhabi’s world-renowned opulence and lavishness precisely mirrors the mission and aesthetic of the Viceroy brand.  We are so excited to continue to develop our presence internationally.”

DUBAI — IKEA UAE, a part of the Al-Futtaim Group, sees a bright future as the company’s expansion plan in the region is moving ahead with planned stores in Cairo and Doha going according to schedule, its top official said.

IKEA UAE, which operates two outlets in Dubai Festival City and Yas Island, may have another flagship store in Dubai to cater the demands of southern part of the emirate. The new store will be equal to the size of Yas Island outlet and is expected to open by the end of 2013.

“We are looking forward for bright future ahead for the IKEA brand following positive sales trends and upcoming new developments in the region,” Vinod Jayan, IKEA UAE Country Range and Retail Logistics Manager, told Khaleej Times during in an interview.

He said various options are under consideration for location of new outlet to serve residents in Dubai Marina and Jumeirah Lakes Towers, but nothing is finalised at the moment. “The new outlet is likely to be a standalone store like the one we opened at Yas Island in March,” Jayan said.

IKEA UAE offers an extensive range of home furnishing items of good design value and nationality. It closely follows the popular self-service self assembly concept which was conceived in Sweden over half a century ago. Jayan, who joined IKEA in 1995, said the Swedish brand will further strengthen its position in the region’s retail sector especially in home furnishing and household items with the opening of outlets in Cairo and Doha during the next two years.

“We are on a new path for growth in the Middle East. We have firmed up plans to expand the IKEA brand in the region and as you may have already read and heard, IKEA is soon going to be part of Cairo Festival City and Doha Festival City.”

He said the Doha outlet is expected to open by the end of next year, while the Cairo store is likely to be completed in 2013. In reply to a question he said the Cairo outlet is unaffected by both the unrest in the city and the transition to a new government. “The store opening is expected as per original plan in 2013.”

Dubai remains a hub

He said the IKEA UAE will supervise the region’s expansion plan in Doha and Cairo and Dubai remains the IKEA hub in the region. “The regional office in Dubai will take care of IKEA stores in Qatar and Egypt.”

Jayan, a certified SAP consultant, said IKEA sales trends are positive in 2011 so far and expected to continue following recovery in global economies. He said IKEA UAE posted single digit sales growth in 2010 and the similar trend is expected to continue this year.

“We are looking forward for a bright future. We are very optimistic because our sales trends are positive.” He said that the daily inventories at a single store in the UAE are likely to cross 8,500 during next catalogue year.

“The inventories range size for the UAE will remain unaffected due to new stores openings in Doha and Cairo.”

He said Yas Island store is expected to attract up to 1.3 million visitors during its first year of operation. “We do not expect new visitors to the Yas Island outlet because it is a standalone store,” he said. “This Yas Island store puts us at the forefront of the UAE’s retail sector and we hope to use that position to revolutionise the way business is done. The UAE deserves the best service possible and by providing that service here, IKEA hopes to lead others into doing the same.”

In reply to a question, he said IKEA UAE attracts about half a million visitors monthly and the present inventories on a single store stand at around 8,000 daily. He said about six million people visit IKEA stores per year, which is almost equal to UAE population. “We want to cater as many people as possible and offer the UAE consumers a splendid range of IKEA products at reasonable prices,” he added.

He said the IKEA UAE business mainly divides into two segments — home furnishing (55 per cent) and smaller household items (45 per cent).

Open for competition

Jayan said IKEA believes on competition and always welcome new entrants in the market.

“We are open for competition and offer quality products at best possible rates. We buy at least possible rates through a wide network of distributors across the world,” he said adding that the higher volumes of business give an advantage to IKEA to offer competitive rates to its customers. “The IKEA brand has had a transforming influence on people’s lifestyles across the UAE and the world thanks to our wide range of genuinely low-price products and home-furnishing solutions,” he said.

“Our range is our biggest strength. The quality, which IKEA provides at such a competitive or low rates gives us an advantage in the market.”

Jayan, who covers the entire supply chain of IKEA UAE, said majority of IKEA products came from Europe and purchases from Asia just contribute about 15 to 17 per cent of the total buying. “We import IKEA products across the globe mainly through sea routes. Eastern Europe leads with 45 per cent share in IKEA products import list in the region followed by Western Europe [40 per cent].”

He said China, India, Taiwan Vietnam and Indonesia are main markets in Asia and the IKEA has trading and purchase offices in major countries.

He added that freight rates have increased during the last couple of years, but IKEA sustains the rise due to its long-term contracts with its partners. “Freight rates are up, but higher commodity prices should be a major concern because it jolt the markets,” he said.

muzaffarrizvi@khaleejtimes.com

Mazaya Qatar Real Estate Development Company (QSC) has wrapped up its participation in the Arab Investment Summit 2011, which drew to a close on Tuesday at the Yas Island Rotana and Centro on Abu Dhabi’s Yas Island.

The Arab Investment Summit 2011, which ran from 23 to 24 May, presented investors with an opportunity to gain confidence and discover capital opportunities in a safe environment, as well as to meet and do business with over 300 investors, decision makers, and key role players in the regional market.

The Summit focused on strengthening the relationships between countries in order to promote new investments.

As part of Mazaya Qatar’s participation in this important event, company CEO Seraj Al Baker took part in a panel discussion on the second day of the summit, which examined ways of identifying which emerging country governments are open to business to ensure the best possible selection for investors. The panel included by Mohamad Sotoudeh, CEO of Essdar Capital, and moderated by Dr Ibrahim Al Hajari, Assistant Professor at the Petroleum Institute in Abu Dhabi.

Speakers stressed the importance of the government’s role in maintaining political stability as a major concern, as well as economic and investment stability. It was suggested that this could be achieved by updating investment tools in line with international developments and adopting transparency when setting investment requirements. Many countries enjoy vast economic resources and investment opportunities, but political unrest and economic instability discourage investors from entering these markets. Therefore, the governments of these countries must urgently consider taking action to boost the investment climate and keep pace with other countries that have managed to attract investors.

Speaking of the panel and the points that were covered, Al Baker said, “The decision of which emerging country to invest in relies heavily on the processes and policies set by that country’s government, including licences, incentives and other government-driven practicalities that need to be incorporated into the decision. The panel discussion covered the role of public capital as a source of funding and decision making; cost and timeline forecasting for projects and private equity investments, and whether it is possible to account for all factors and variations; the top three markets with potential opportunities; and the top three economies with surmountable challenges – all very valuable information for potential investors looking at the Arab markets.”

On his company’s decision to participate in the Arab investment Summit 2011, Al Baker said, “Mazaya Qatar has a portfolio of important architectural and professional civil engineering projects and mega-projects in Qatar, and we are committed to making a difference in real estate development, to taking it beyond mere development into a quality business that will help enhance the company’s position on both the GCC and regional levels. We are also invested in highlighting the opportunities available to investors, both regional and foreign, in Qatar, as well as the GCC and the wider Middle East. Participation in events such as the Arab Investment Summit presents us with the perfect opportunity to do just that.”

2011 has seen Mazaya Qatar start to carry out its expansion plans while also completing its existing projects. The company’s impressive track record, strong financial position and signing of strategic long-term income guaranteed projects will help push the real estate sector towards recovery and create a brighter and more mature future.

Al Baker stressed the strategic importance of Qatar presently, and the multitude of investment opportunities in various sectors within the Qatari markets. He invited investors to speed up entering the Qatari market in order to benefit from these opportunities.

The GCC is currently in a perfect position to diversify away from oil and other traditional investments, with its booming economies, growing population and hydrocarbon wealth. The Arab Investment Summit gave those present the chance to discover non-traditional investment opportunities; to meet with over 200 of the biggest projects in the region; to leverage initiatives undertaken by the region’s governments to attract investments; to get to know new revenue streams for projects and how to acquire finance; to meet with business and government leaders to discuss major developments, challenges, and success stories in the area of investment in the Middle East; and to network with hundreds of investors from all over the world.

Fifteen powerful keynote sessions and four interactive panel discussions focused on various aspects of Middle East investment, which helped attending investors to understand the intricate dynamics of Middle East investment opportunities, and to identify hidden treasures.

Key topics included expansion of the capital markets to facilitate smooth flow of money; challenges faced by regional and foreign investors; public-private partnerships as a catalyst for sustainable development; leveraging existing investments and driving new investments; exploring financing options; oil and gas as key elements of Middle East growth; making the Middle East power sector attractive to private investors; creating more investment opportunities in the telecoms sector; analysing market trends and future investments in the Middle East communication market; attracting investment in the aviation sector; investment opportunities for infrastructure development in the Middle East; the investment potential in establishing commercial banks and financial institutions in the Middle East; and the real estate sector’s status as one of the greatest opportunities awaiting foreign investors.

James McGowan is the store manager of Ikea on Yas Island where he works for Al Futtaim, the furniture store’s retail partner in the UAE. He talks about packing up at Marina Mall and moving out.

How did the move go?

I would say we have had a pretty smooth transition. We had a project team and Ikea helped and pointed us through the process. They are used to these big moves.

Why bother moving premises in the first place?

It depends on the circumstances for a retailer. For us, the development of Abu Dhabi was a crucial factor. Everything is moving out towards the airport. In Marina Mall we also became more of a convenience store than a destination, which is not our goal. Marina Mall was quite restricting in what we could offer the customer.

What was the first thing you considered when you decided to look for another location?

The most important thing for us was the commercial terms. Out of the options we had, we thought this location suited us best. It was the most financially viable, so the first thing we did was look at feasibility.

How do you work out size?

Ikea stores are pretty prescriptive. So we feed in our sales volumes expectations for the next five years and, because Ikea are good at building stores, they have a formula that if you are going to hit a certain figure, then that will decide the dimensions of the store.

What is something to look out for when moving?

It depends on the terms of the agreement between your existing landlord and the new, but you need to build in double rent in your forecasts. Even if there is not an overlap in the two stores opening, there will be an overlap in closing the old store and returning it to its original condition for the landlord. Stores come as shells and retailers add all the fixtures and fittings, so these then have to be removed before the store is given back. This takes time.

How do you manage to uproot staff?

Having been based in Abu Dhabi for 10 years, we have a lot of staff that live in the centre of the city. So we put on a couple of buses a day so that people are not inconvenienced by the move.

Have you increased staff?

We’ve gone from 122 to 265 staff. We still have the same functionality in terms of our teams, we just had to make each one a little bigger.

Was it all worth it?

Our footfall has definitely exceeded expectations. We were aiming for an average 120,000 to 130,000 visitors a month and in April we slightly exceeded that level. The customers are spending more because they have the whole offering under one roof. Now the customer comes to our store and anything they can see, they can take home straight away.

Etihad Airways, and the General Civil Aviation Authority (GCAA), organized a seminar entitled Mental Health Amongst Aviators – Emphasis on Alcohol and Drugs at Yas Island, Abu Dhabi.

On the day’s agenda, studies specifically relating to the influence alcohol and drugs have on performance – especially regarding the effects they have on flying an aircraft – were discussed in depth by specialists in their respective fields.

Keynote speakers included representatives from the GCAA Dr Nabila Al Awadhi, Head of Aeromedical Section, Dr Paul Collins Howgill, Head Aviation Medicine Training, UK CAA, Dr Nadia Bastaki, Senior Aero Medical Officer, Etihad Airways, Dr Suhaila Al Awadhi consultant clinical pharmacologist, Head of Pharmacy Department at Fujairah Medical District, Ministry of Health UAE as well as doctors and specialists from King’s College London; Tawam Hospital, Al Ain; and the American Neuro Psychiatric Centre in Abu Dhabi.

There’s been an increase in alcohol-related pilot fatalities in general aviation accidents between 1987 and 1993, as reported by the Forensic Toxicology Research Section of the FAA Civil Aerospace Medical Institute. This information is based on the analysis of blood and tissue samples from pilots involved in fatal aviation accidents.

The GCAA has perceptive that the nature of aviation places a special responsibility on aviation workers, employers, regulators and governments to protect public safety and prevent harm; and any psychoactive substances has the potential for creating mental and physical problems in the user; and so any use of such psychoactive substances may negatively affect the performance of safety- related aviation duties and potential for doing harm; accordingly the GCAA has decided to recommend measures that focus on preventing the problematic use of substances by aviation workers; and preventing the adverse effects of problematic substance use from threatening the aviation workplace, Dr. Nabila Al Awadi said.

The introduction of mandatory drug and alcohol testing program into the GCAA industry will significantly improve the overall approach to maximize pilot performance and reducing the impact of drug and alcohol use on flight safety and we will further expand the implementation of this policy to cover the entire UAE Aviation industries.

Aldar, Abu Dhabi’s real estate development and management company, is set to bring Yas Island, Abu Dhabi’s major destination for business and leisure travellers to Arabian Travel Market, the leading travel exhibition for the Middle East region that starts tomorrow in Dubai.

Since November 2009, when it welcomed the public ahead of the first Formula 1 Etihad Airways Abu Dhabi Grand Prix, Yas Island has evolved into a major business and leisure hub. Located between Abu Dhabi and Dubai, and just 10 minutes from Abu Dhabi International Airport, Yas Island has a wide range of hotels and attractions to cater for all travellers.

The Yas Hotel has developed its reputation as one of the most iconic five star hotels in Abu Dhabi, and has welcomed high-level governmental meetings, awards ceremonies and corporate conferences. The profile of the hotel has blossomed inside and outside the GCC, culminating in the award of the “World’s Best New Hotel” at the World Travel Awards in London in November 2010.

Six other hotels on Yas Island offering 1,800 rooms and conferencing facilities have been developed around a plaza close to the Yas Marina Circuit. The hotels are owned byAldar and operated by global brands IHG (Crowne Plaza and Staybridge Suites), Rezidor (Radisson Blu and Park Inn) and leading regional operator Rotana (Rotana and Centro).

Last year also saw the launch of a number of new destinations to great acclaim

• Opened in the summer of 2010, Yas Links Golf Course, the first true links in the region, has further strengthened Abu Dhabi’s position as a major golf tourism destination. It was also decorated with the coveted Best Golf Course and Best Club accolades by Middle East Golfer, the region’s leading consumer golf magazine, in its 2010 awards.

• Ferrari World Abu Dhabi opened in November 2010, becoming the world’s largest indoor theme park and the first ever Ferrari theme park in the world. The park hosts over more than 20 Ferrari-inspired rides and attractions for the entire family including the world’s fastest roller coaster and the region’s first duelling coaster.

• The Yas Yacht Club is now open and has become a vibrant entertainment destination with Cipriani, Stars’n'Bars and Allure nightclub all proving to be a welcome addition to Abu Dhabi’s dining and nightlife options.

Yas Island has also played host to diverse range of international and regional artists such as Eric Clapton, DJ Tiesto, Stevie Wonder, Shakira and AmrDiab during its Show Weekends and a full programme of year-round cultural and sporting events are now in place.

Looking ahead, Yas Island is set to become a major retail destination for the UAE. The largest IKEA store in the MENA region opened in March, and Yas Mall, a super regional Mall is set for completion in Q3 2013. In addition, an exciting new water park concept is also scheduled for completion on Yas Island in 2013.

Mohamed Al Mubarak, Deputy Chief Executive Officer and Chief Commercial Officer, Aldar Properties, commented, “It is great to be returning to Arabian Travel Market to showcase the further developments at Yas Island and explore collaboration opportunities with the wider tourism industry. Over the past two years, a range of exciting new attractions have allowed Yas Island to establish itself as a destination catering to a diverse variety of visitors from business travellers to family leisure visitors.”

The Telecommunications Regulatory Authority (TRA) participated in the Samena “Beyond Connectivity 2011″ conference. H.E. Mohamed Nasser Al Ghanim, TRA Director General delivered a speech, as the Honorary Guest Speaker, for the opening ceremony on April 25. The event was held in the Yas hotel, Abu Dhabi from April 25 till 27.

Al Ghanim addressed many relevant topics related to the efforts made by the TRA to ensure a safe and smooth switchover; he also discussed the differences between the two technologies and the benefits of the digital broadcasting on the ICT sector and the national economy.

“With much preparatory work completed by many TRA departments, the UAE is now in the process of starting its switchover. The TRA hosted the GCC Technical Committee earlier in April 2011, where the participants discussed the outcomes reached by the Switchover Assigned Group.” said Al Ghanim.

In his speech, Al Ghanim explained that the switchover will not affect the ICT sector only, but also media, broadcasters and many others.

He also expressed that the authority pays a lot of attention to future technologies.

“The TRA is always eager to adopt the latest technologies that ensure the UAE stays ahead in the ICT arena. Switching to digital broadcast is one of these leading technologies,” added Al Ghanim.

TRA objectives is to support the UAE ICT sector by safeguarding competition, to protect the interests of subscribers, to enhance the readiness of e-services, to encourage investment, innovation, development and education, to meet our corporate social responsibility, and to implement best practices in regulation and supervision.

With a network of members that extends beyond continental borders, the Samena Telecommunications Council, a multi-continent telecom consortium, aims to be the ultimate promoter of telecom innovations in its member regions and a facilitator for collaboration and knowledge-sharing between regional telecom entities. Such collaboration and knowledge-sharing between operators, vendors, manufacturers, entrepreneurs, educators, R&D experts, and regulators, aids effective resolutions to technical, economical, and legal issues in regions where tough economical and regulatory environments prevail.

Abu Dhabi-based developer Aldar Properties feels that a more optimistic buyer market is emerging in the region.

Yas Marina

“With residents now well settled into Al Bandar, the first community to be delivered at the new Al Raha Beach project, there is now only a small percentage of the apartments still available for purchase,” says the company.

Speaking to OPP this week, Rami Nasser, Aldar Director of Sales & Commercial Leasing, said “we are seeing a more optimistic outlook from purchasers as Al Zeina and Al Muneera move towards their openings later this year.”

“With Al Bandar next door completed more than 6 months ago, and with the attractions of Yas Island only minutes away, people are expressing more interest in these communities.”

And, as if to emphasise the point, when the company recently launched 75 villas and 12 apartments for sale at its Al Bateen Park scheme on Abu Dhabi Island, “things were brisk with the majority being sold on the first day,” says the company.

“It is particularly heartening to see an increase in interest from potential purchasers across the property range,” adds Nasser.