No pause for new construction
Construction permits issued during the first half of the year covered an area of 8.4 million square meters, according to Bank Audi’s August 1 report, a 33 percent increase on the same period in 2009 (as per data from Order of Engineers of Beirut and Tripoli). Another indicator of increased real estate and infrastructure activity is the 10 percent rise in cement deliveries in the first five months of 2010 compared to the same period a year ago, reaching some 2,092,000 tons. April 2010 saw the highest amount of cement deliveries, at 501,000 tons.
Housing Bank slowly expanding
Lebanon’s Housing Bank, which offers real estate loans to Lebanese residents and expatriates, reported a 2.2 percent rise in profits in 2009, rising to $9.4 million compared to $9.2 million in 2008. Some of the reasons for the small margin of profit are a 21 percent decrease in commission income, while general and operating expenses rose 13.6 percent and 28 percent, respectively. As reported in Executive, the Housing Bank, owned by commercial banks, local insurance firms and the government, handed out $83 million in loans in 2009 and plans to double its portfolio in 2010. Due to soaring land values, the bank raised its ceiling for loans used to acquire new homes — buying or building — and loans for repairing homes, to $400,000 and $132,670, respectively.
Link-up of the Levant
Jordan’s Minister of Transport Alaa Batayneh announced on August 3 that the kingdom has become the 46th member country of the intergovernmental Organization for International Carriage by Rail (OTIF) and that, subsequently, some 950 kilometers of rail will be built from 2011 to 2014. Due to its geographic location, Jordan will be able to link an efficient trade route from Aqaba to Gulf Cooperation Council countries and the Levant. The OTIF’s mission is to standardize freight infrastructure across Europe and the MENA region to create a system of uninterrupted freight and passenger travel. The group’s Secretary General Stefan Schimming said: “This is a clear commitment by Jordan to the performance of carriage by rail geared to transcontinental requirements based on the contractual conditions for international passenger and freight traffic.” In parallel, Iran’s Road and Transportation Minister Hamid Behbahani made a visit to Syria on August 3 and announced that officials from both countries are planning to expand Iran’s national railway to Iraq and Syria, so as to have an indirect linkage to Lebanon, adding that officials from the Levant countries have shown legitimate interest. ”Upon materialization of the plan, rail transportation in the eastern coasts of the Mediterranean Sea will be connected to China via Iran and also a connection with Central Asian states will become possible,” said Behbahani, according to Iran Daily.
Rotana to break record for Jordan’s tallest tower
The United Arab Emirates’ Arabian Construction Company, which worked on the Sheikh Zayed Mosque and the Emirates Palace Hotel, announced in August that it was selected by the Emirates Tourism Investment Company to construct the 50 floor Rotana Hotel Tower in Amman’s downtown Abdali district. The $93 million contract won by Arabian Construction Company to build what will be the country’s highest tower at 188 meters is only part of Jordan’s $5 billion Abdali Urban Regeneration Project multi-use development plan. The contractor has already begun construction on the tower which, when completed in 2013, will include the 425 room 5-star Rotana Hotel, restaurants and underground parking for 180 cars spread over seven basements.
Ghaddafi to rebuild Gaza homes
Saif al-Islam Ghaddafi, son of Libyan leader Colonel Muammar Ghaddafi and chairman of the Ghaddafi International Charity and Development Foundation (GICDF) signed an agreement with the United Nations Relief and Works Agency (UNRWA) on August 9 that will allow 1,250 houses in Gaza to be rebuilt after they were destroyed during the Israeli assault in the winter of 2008/2009. Ghaddafi said later that his charity had sent the Al Amel humanitarian ship carrying cement and iron rods to enable the nearly $50 million construction project to start, reported the Tripoli Post. The two parties also signed an agreement to build a mobile hospital in the occupied West Bank and announced that a proportion of future cash inflows received by the charity would automatically be directed towards reconstruction projects in Gaza. A representative of the UN agency said the package would directly aid hundreds of families in Gaza whose homes were demolished, adding that many are forced to live in expensive rented apartments, according to a report by UNRWA. On August 10, UNRWA officials said that an agreement was reached between Libya and Israel whereby the Ghaddafi foundation would be allowed to provide the funds in exchange for releasing an Israeli photographer who was detained in March in Libya. However, Youssef Sawani, the charity’s executive director, denied that such an agreement took place.
Artists put finishing touches on Beirut’s Synagogue
The Israeli newspaper Haaretz has reported that renovation on downtown Beirut’s Maghen Abraham synagogue is almost complete, having started in 2009 after receiving permission from the Lebanese Government. The newspaper claims that the project received a $150,000 grant from Solidere, and $200,000 worth of funds will be collected from the few dozen Jewish residents in the country and others who emigrated from Lebanon. Some of the renovations include closing the hole in the building’s roof and reinstalling chandeliers, benches and other interior decoration in Beirut’s oldest synagogue, built in 1925, which was damaged by Israeli shelling during Lebanon’s Civil War.
Not the holiday season for Egyptian Resorts
First half results for Egypt’s largest developer, Egyptian Resorts (ER), showed a 90 percent fall in profits from this time last year. On August 15, the Egyptian bourse reported the firm’s profit for the first six months to be $109,200, compared to $1.95 million a year ago, after not having sold any land to developers since the third quarter of 2008. In April, the firm signed a partnership deal with Orascom development, which owns 4.5 percent of ER shares, to develop 2.5 million square meters of the Sahl Hasheesh Resort. Hisham Halaldeen, an analyst at Naeem Holding, told Reuters: “The launch of the Marina project in partnership with ODH will be the game changer starting in the first quarter of 2011.” On August 22, the Cairo-based firm’s board of directors retook a 80,900 square meter plot of land that it had sold for $11 million after the buyer failed to meet administrational requirements and fees. In April, Chief Executive Officer Mohamed Kamel said in a statement to Reuters that the company could go for three or four years without making a land sale due to its high level of cash.
Nakheel back on track
Ali Lootah, chairman of Dubai World’s development arm Nakheel told Al Khaleej newspaper on August 22 that $681 million has been paid back to its contractors. There are no further plans to sell additional assets or cancel any projects, he added. So far, 80 percent of its creditors have agreed to a restructuring plan that totals $10.5 billion, but for the plan to be approved, 95 percent approval is needed. Nakheel has agreed to pay back the loans, 60 percent via sukuk Islamic bonds and the other 40 percent in cash, following a proposal issued by its parent company Dubai World in March. The total amount to be paid in cash to creditors is $1,089 million, with the first beneficiary being Arabtec, the largest contractor in the UAE.
