Latest news with #Dh23
Arabian Post
20-05-2025
- Business
- Arabian Post
UAE Commits Dh40 Billion to Propel Industrial Expansion
The United Arab Emirates has unveiled a Dh40 billion financing initiative aimed at accelerating the growth of its industrial sector over the next five years. Announced by Dr Sultan Al Jaber, Minister of Industry and Advanced Technology, during the Make it in the Emirates forum in Abu Dhabi, the plan seeks to enhance the nation's manufacturing capabilities and diversify its economy. The financing will be facilitated through a consortium of major banks, including Emirates Development Bank , First Abu Dhabi Bank, Mashreq, Emirates NBD, Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, and Wio Bank. These institutions will offer competitive loans to industrial companies, supporting projects that align with the UAE's strategic economic objectives. Dr Al Jaber emphasized the multiplier effect of industrial investments, stating that each investment stimulates growth in related sectors. He highlighted that the initiative is part of the broader Operation 300bn strategy, which aims to increase the industrial sector's contribution to the UAE's GDP to Dh300 billion by 2031. The Make it in the Emirates forum also saw the announcement of additional incentives, including Dh23 billion in guaranteed offtake agreements, bringing the total value of captive procurement opportunities to Dh143 billion. These agreements are designed to encourage local manufacturing of over 2,000 products, with significant procurement commitments from entities like ADNOC and Pure Health. New industrial projects and investments worth Dh20 billion were unveiled, alongside co-lending financial solutions of Dh1 billion to empower small and medium enterprises . The government also introduced comparative electricity tariffs in the northern Emirates and launched an AI innovation programme providing Dh370 million to targeted technology startups. See also Omniyat Ventures into Sustainable Finance with Debut Green Sukuk Emirates Development Bank has played a pivotal role in supporting the UAE's industrial sector. Since the launch of its strategy in 2021, EDB's financing has reached Dh15.7 billion, contributing Dh7.4 billion to the industrial GDP by the end of 2024. The bank has also facilitated Dh50.2 billion in capital expenditure financing, supported Dh15 billion in greenfield projects, and attracted Dh7 billion in foreign direct investment. In 2024 alone, EDB provided Dh8.7 billion in financing, marking a 222% increase from the previous year. This financing supported the creation of over 14,000 industrial jobs and contributed Dh4.1 billion to the UAE's industrial GDP. The manufacturing sector received the largest share, with Dh4.23 billion, accounting for 49% of total disbursements. The bank's focus on key sectors includes advanced technology, which received Dh3 billion in financing, and renewable energy projects, which secured Dh1.2 billion. Additionally, the food security and healthcare sectors received Dh1.22 billion and Dh1.14 billion, respectively. EDB's support for micro, small, and medium enterprises remained a core priority, with total financing reaching Dh3 billion in 2024. This includes Dh758 million through the bank's Credit Guarantee Scheme in partnership with 11 commercial banks, Dh2.1 billion in direct financing to mSMEs, and Dh107 million to SME-Micro projects. The bank's strong financial performance and strategic focus have been recognized by S&P Global, which upgraded EDB's credit rating to AA, the highest among financial institutions in the UAE and MENA region. This milestone underscores the bank's robust financial profile and alignment with national development priorities.
Khaleej Times
24-04-2025
- Business
- Khaleej Times
Moody's Ratings upgrades PNC Investments CFR to Ba2
PNC Investments LLC (PNCI), the parent company of global luxury real estate developer Sobha Realty, has received an upgrade in its Corporate Family Rating (CFR) from Moody's Ratings, which raised the rating to Ba2/stable from Ba3/stable. Additionally, the senior unsecured rating of PNCI's existing $500 million sukuk issued by Sobha Sukuk Limited has been affirmed at Ba2, all outlooks remain stable. This upgrade reflects PNCI's continued strong sales, robust construction activity, and significant improvement in credit metrics. In 2024, revenue rose to Dh8.9 billion from Dh6.5 billion in the previous year. Moody's-adjusted debt to EBITDA improved to 1.7x from 2.7x in 2024 and is expected to further strengthen to 0.9x in 2025. As the second largest privately held residential developer in Dubai by sales, Sobha Realty continues to demonstrate the strength of its Backward Integration Model, allowing full control from design to delivery. This, coupled with a strong backlog of more than Dh23 billion, positions the company to navigate evolving market dynamics effectively while delivering on its commitment to excellence and timely project delivery.
Khaleej Times
31-03-2025
- Business
- Khaleej Times
Sharjah: New power plant to reduce summer outages, boost electricity supply
Residents of Al Hoshi and nearby areas in Sharjah can now expect a more reliable electricity supply, even during the peak summer months, due to a major infrastructure project by the Sharjah Electricity, Water and Gas Authority (Sewa). The newly inaugurated Al Hoshi power plant, built for Dh23 million, is now fully operational and is set to reduce power outages by strengthening the electricity network, the authority noted. With summer around the corner — when energy demand soars due to air conditioning and cooling systems running at full capacity - SEWA said it has taken a proactive step to ensure an uninterrupted power supply. The 33/11 kV plant is equipped with the latest technology to improve efficiency and support the growing number of homes and businesses in the area. "This plant is a crucial step in enhancing our electricity transmission and distribution networks, ensuring that residents receive the best possible service without interruptions," said Eng Hamad Al-Tunaiji, director of the Power Transmission Department at Sewa. The project is part of a broader vision led by Dr Sheikh Sultan bin Mohammed Al Qasimi, Ruler of Sharjah, to continuously improve the emirate's infrastructure and provide a better quality of life for all residents. More power and water projects The Al Hoshi power plant is just one of the many infrastructure developments Sewa has completed. The authority has been upgrading electricity networks at 133 locations, reducing power disruptions across the emirate. In Kalba, six major lighting projects worth Dh24.4 million have been completed, making roads safer and neighbourhoods brighter. Meanwhile, SEWA has added over 3,200 new water connections this year to serve growing residential and commercial areas. "These improvements mean fewer power cuts, better lighting, and stronger water supply for thousands of residents across Sharjah," Al-Tunaiji added. Other major projects are also in the pipeline. This year, six more lighting projects in Kalba will be completed, further enhancing safety and urban development. In the water sector, Sewa is launching a massive Dh50 million expansion of its network in Kalba to meet the rising water demand. Additionally, a new desalination plant in Hamriyah will soon produce 90 million gallons of water per day, securing a sustainable water supply for residents.
Khaleej Times
20-03-2025
- Business
- Khaleej Times
Dubai: Rising rents drive tenants to suburbs, with affordable apartments starting Dh23,000
New suburban areas are becoming popular among Dubai tenants as rising rents push residents to look for more affordable communities. Due to the affordability factor, Lehbab, Al Aweer, and Al Marmoom are fast-emerging new suburban rent areas. 'Dubai's rental affordability is being redefined, and new data shows that 'affordable' apartments are available, specifically in suburban areas away from the city centre,' said Lewis Allsopp, Chairman at Allsopp & Allsopp. He added that affordable rents in Lehbab, Al Aweer, and Al Marmoom now average between Dh23,000 to Dh35,000 annually. Villas and townhouses in these areas range from Dh39,000 to Dh73,000. Over the past few years, communities such as JVC, Silicon, Arjan, and Dubailand have been perceived as suburban areas. But these communities have seen a massive influx of new tenants, pushing rents substantially higher and making them highly sought-after areas. 'A significant 13 per cent year-on-year jump in rental prices across Dubai is encouraging residents to look beyond the city core, leading to increased demand in these communities and a notable shift in Dubai's residential landscape,' said Allsopp. Affordable communities for skilled workers Earlier this month, Dubai announced a project to deliver 17,000 studio to three-bedroom apartments with affordable rents for skilled professionals to meet the rising demand for affordable housing. The first phase will be developed across six sites in Al Mueisim 1, Al Twar 1, Al Qusais Industrial 5 and Al Leyan 1. Ayman Youssef, managing director of Coldwell Banker, UAE, said that once these affordable properties enter the market, a 'more substantial cooling of rental prices' will be expected. 'At the moment, I don't anticipate a significant drop in rents solely due to this new project, as the current demand far exceeds the 17,000 units being introduced. For a noticeable softening in rental prices, 300,000 units currently under construction will be a more decisive factor,' he said. Rents in Dubai have been constantly on the rise over the past four years, prompting tenants to look for new affordable communities. However, some areas are seeing a slow increase as new supply is coming online, easing pressure on the rents. Ayman Youssef said the range for affordable rents varies based on the type of apartment. 'For a studio, it is usually up to Dh30,000, up to Dh50,000 for 1-bedroom units and up to Dh65,000 for 2-bed apartment per annum.' Top affordable communities Youssef said communities that offer affordable rents include Dubai such as Bur Dubai, Karama, Deira to International City, Discovery Gardens and some brackets in Dubai Silicon Oasis and apartments in Damac Hills 2. For affordable apartment rentals, Allsopp suggested that tenants should look to suburban areas like Lehbab, Al Aweer and Al Marmoom. 'These communities, roughly 25-30 minutes from hubs like Jumeirah Village Circle and Town Square, offer more budget-friendly options. If you're seeking villas or townhouses in the Dh40,000 to Dh55,000 range, consider Dubai Industrial, Ras Al Khor, or Nahda. Essentially, affordability means looking beyond the city centre. So, these areas are further out from established villa communities like Jumeirah Golf Estates and Arabian Ranches,' he added. Commuting is a challenge Youssef added that travel time to and from the heart of the city is one of the biggest challenges of the affordable communities, followed by the availability of amenities compared to some of the more upscale areas. Allsopp added that the trade-offs for affordability in Dubai's suburban areas are things such as longer commutes and less developed amenities. 'However, Dubai's rapid growth means these communities are poised for significant development within the next decade. Expect infrastructure improvements and increased connectivity, similar to what we've seen with Al Khail Road and Hessa Street, making these areas predicted future hotspots,' he said. Popular affordable communities Allsopp said that despite not being the absolute cheapest, Jumeirah Village Circle (JVC) is the top rental choice for Dubai's skilled professionals as it was the most transacted community for rentals in January and February, with around 1,300 contracts signed each month, and an average rental price of Dh70,000. 'It's a testament to how quickly Dubai develops, as JVC was once considered a far-out location.' According to Coldwell Banker, Old Dubai, Discovery Garden, Times Square area and Silicon Oasis are the most popular affordable communities among skilled professionals. Youseff revealed that it is 'rather difficult' to get apartments in affordable communities as the occupancy levels in these areas are quite high.
The National
26-02-2025
- Business
- The National
How Emirati talent could drive 'homemade' manufacturing
When a product is described as 'homemade', the suggestion is that it is made with care and skill. In the UAE, several recent announcements that more citizens are to take up high-tech manufacturing jobs in the near future shows that the country is making a serious commitment to expanding its 'homemade' industrial and technical base. This week, jet engine maintenance specialist Sanad, an Abu Dhabi business owned by Mubadala Investment Company said its new aircraft engines overhaul deal with Pratt & Whitney would more than double its workforce and create more than 1,000 new jobs in Abu Dhabi, providing high-tech roles for Emiratis. Similarly, Thales Emarat Technologies, a defence and technology firm, this week said it aimed to double its workforce this year to 340 people, with 30 per cent of the new hires to be Emiratis. Pascale Sourisse, senior executive vice-president of international development at Thales, told The National that the company is also working with local universities to source Emirati talent, mainly engineers, for high-tech jobs. These developments come amid a string of high-profile contracts signed with local companies at Idex 2025, the Middle East's biggest defence and security expo that was held recently in the UAE capital. Over five days, the UAE awarded 55 defence contracts worth Dh25.15 billion ($6.8 billion). Close to 70 per cent of these were awarded to local companies. A look behind these impressive numbers reveals not a collection of unrelated developments and deals but a well-established national plan to transform the economy and enable the country's talent base. For example, last May it was announced that the UAE's industrial sector would receive an additional Dh23 billion ($6.3 billion) in funding, backed by major companies. Another example of prioritising 'homemade' industry is the UAE's Operation 300 Billion strategy that seeks to increase the contribution of the domestic industrial sector to the country's gross domestic product to Dh300 billion by 2031. The positive ripple effects as a result of this embrace of domestic manufacturing, development and engineering are many. As well as creating the next generation of highly skilled citizens through Emiratisation, it reduces the country's reliance on foreign suppliers for critical equipment, it drives research and development in cutting-edge technology and reduces vulnerability to geopolitical pressures on international supply chains. Somewhat counter-intuitively, it also helps to build better foreign partnerships. The more that significant companies like France's Thales and America's Pratt & Whitney invest in UAE talent, the more their expertise will inform the development of the domestic industrial sector. This is a practical partnership in which all sides benefit. As UAE companies and specialists develop more and better products, the export market fuelled by such innovations will also bring the country into a closer working relationship with foreign governments and other overseas customers. This week's developments show that the UAE is in the process of building a robust, Emirati-focused manufacturing sector to ensure future prosperity and resilience. That this can be achieved with the right foreign partnerships is testament to the country's agile approach to business. But Emirati technology and products that come with the 'homemade' tag could be a gamechanger for the UAE economy and the wider region.
