Dubai likely to house AAF headquarters

The Arab League's real estate body, Arab Appraisal Foundation (AAF), will be a self-financed entity, with a high probability for the headquarters to be in Dubai, said a top Arado official.

"I expect the real estate foundation to be self-financed. The money and the budget will come from different venues such as the fees and the donation of the different members," said Refat Abdelhalim Alfaouri, Director-General, Arab Administrative Development Organization (Arado) League of Arab States Cairo, Egypt.

"Everything is now under speculation and probably it is premature to talk about this, however, we are dealing with the real estate agencies in the Arab countries.

"There have been talks between Dubai's Real Estate Regulatory Agency (Rera) and Arado. So far we are not getting any money from any other government or agency until we really legally establish this organization," Alfaouri told Emirates Business on the sidelines of the 'Second Arab Real Estate and Urban Development Conference' held in Dubai.

"Real Estate has been conducted in a non-professional way in the Arab world. Once this foundation is set up, we will look at it as the establishment of an institution to take care of real estate in all the 22 countries. Services will be provided to all the Arab countries. The location of the AAF is yet to be decided," he said.

He added the UAE, especially Dubai, was the "most advanced city" among Arab nations with respect to real estate regulations.

"The board of directors will take a decision on where the headquarter will be located... and Dubai has a 'high probability' of housing the headquarter." On Monday, senior members of the Arab League approved plans by Rera to establish the AAF.

Backed by the 22 states of the Arab League, the AAF has grounds to be considered the Arab equivalent of international property bodies such as the Appraisal Foundation in the United States and the United Kingdom's Royal Institution of Chartered Surveyors.

Real estate's share in gdp down
The contribution of the real estate and construction sector to the gross domestic product (GDP) of Dubai will be less than earlier, a top government official said.

Speaking on the sidelines of the "Second Arab Real Estate and Urban Development Conference, Hamad Buamim, Director-General of Dubai Chamber of Commerce and Industry (DCCI) said: "Dubai is already seeing signs of recovery. The backbone of Dubai is trade and commerce. We believe this is what will continue to be in the future. Contribution of the construction and real estate sectors to the GDP of the economy will be less. They will continue to be a part of Dubai's growth but not a major part.

"The construction and real estate sectors have grown very fast and it will take more time for these two sectors to recover," he said

The DCCI director-general called for an increased real estate evaluation system to be established in Dubai and welcomed the initiative to launch the AAF.

"We know the issue of real estate is all about value of land and assets which has to be recognized and regulated," Buamim added.

By Anjana Kumar

Source: Zawya.
Link: http://www.zawya.com/Story.cfm/sidZAWYA20091021034727/Dubai%20likely%20to%20house%20AAF%20headquarters.