IT Revolution

Software outsourcing has become a very profitable business to various international companies and its giving a profit of billion of dollars per year.

The demands on IT organizations have never been higher. In addition to fulfilling their traditional responsibilities, IT organizations must now:
• Run IT like a business by forecasting and delivering results with accuracy and precision
• Align IT spend with business priorities, rapidly adjusting as conditions change
• Demonstrate measurable business value from technology investments
• Take advantage of outsourcing, consolidation and other cost reduction vehicles
• Communicate effectively with business partners and other stakeholders to create transparency, accountability and ownership
• Operate in accordance with today's stringent corporate governance requirements

Property Buzz

It was that dreaded time of the year again. I am talking of the annual "What-have-I-achieved-out-of-my-New-Year-resolutions" list exercise, a list that now seems obviously made in a moment of absolutely mindless optimism on last New Year's Eve.

Utterly dejected, I turned to one source of interesting and (usually) positive news the Dubai real estate sector. And voila, there were some fairly exciting developments in real estate in 2004. Here is my list of the key trends that showed up during the Year of the Monkey.

Primary market prices of residential properties persisted in their upward journey. The big three (Nakheel, Emaar and JBR) have all raised their prices compared to units sold in 2003 and earlier.

On a per square foot basis therefore, a unit on the same project is much more expensive now.

Certain projects launched in July 2004 were priced approximately 150 per cent higher than apartments sold in the same project in April 2003. This obviously allowed the developers to capture the premium inherent in the soaring resale market.

Market size estimated at Dh331b in four years

Dubai : The size of the GCC real estate market over the next four years is around $90 billion (Dh331 billion), said Adel Al Shirawi, CEO of home finance company Tamweel.

He pointed out that the UAE and Saudi Arabia accounted for almost 80 per cent of the GCC property market. Some of the factors attributed to the region becoming a destination of choice for investments were the increasing repatriation of Arab funds from Western markets, augmented by the deployment of savings by residents, and investments from non-residents from the neighbouring regions.

Al Shirawi was addressing the second Middle East Real Estate Conference held in Dubai recently. The event focused on the dynamics of the real estate sector in addition to core areas such as mortgage issues and options. "The GCC region has witnessed phenomenal growth in this sector which saw an annual growth of 8 per cent in supply; in Dubai specifically, we have seen double-digit supply growth," Al Shirawi said.

He also stressed the need for a flow of fresh funds into the market by attracting foreign direct investment to the GCC.


The official highlighted the need to introduce the concept of securitization and regulations that increase its flexibility and market awareness for individuals regarding alternative debt options such as securitization, sukuks and other funds.