A major downside of life in Dubai is the heat factor. It gets so hot that it makes it impossible to do any outdoor activity between the months of May and September. As a result you are totally restricted to malls. And that’s why malls here are so big and offer so many activities. You can compare this with places where winters are extremely harsh like Chicago and Toronto. Outdoor activities pretty much come to a halt in those cities as well. It’s as hard to do things in -20C temperature as it is in +40C. If hot water comes from cold taps over here then water freezes in pipes over there.

Extreme is extreme, no matter which direction you go in.

In my opinion weather is not a good factor to judge a city, because you can’t control it, and there is no such thing as perfect weather.

A city, however, can be better judged by quality of life and ease of doing things, among other things. So if we look at Dubai from that perspective, I think Dubai rates pretty well as far as quality of life is concerned. Yes there is a huge contrast between low-paid labor class and extremely high-paid upper class, but you cannot blame Dubai for that contrast. If cheap labor is available in a country then it will be used. No one in their right mind will hire expensive labor when cheaper options are available. Because of huge different in currency values, labor from third world countries are willing to work in Dubai for extremely low wages and still do good compared to their home countries.

So if you can afford it Dubai offers arguably best quality of life in the region. You have the best housing, best shopping, best facilities, best vehicles, pretty much the best in every category, available in Dubai.

What else improves the quality of life is infrastructure. Currently Dubai is lacking solid infrastructure but the gap is quickly being filled up by major infrastructure projects, and Dubai Metro is one of them. I seriously believe Dubai Metro has the potential to change the way Dubai operates.

As far as art scene goes, it’s true that Dubai is not as artsy as one would like it to be, but that’s a side effect of the rapid growth Dubai underwent. Art is an evolutionary thing, not revolutionary, so it couldn’t catch up with the speed of Dubai. But, as things are starting to settle down, the artists are catching up. There was cirque de soleil here not too long ago. Top musicians come here regularly for concerts. Major sports tournaments are organized here (if you consider sports as a form of art). Film and theater industry is starting to flourish with film festivals and all. Who said there is no art in Dubai?

As far as ease of doing things is concerned, there is still a long way to go for processes involving government, but things are improving fast as the government is taking steps to use technology to make their operations more efficient under the e-government initiative. There are also regulations coming up in real estate and other sectors which will streamline the processes, some laws need to be revised, but once the infrastructure is in place then everything else will align itself accordingly.

I am sure in less than a decade Dubai will be comparable to Chicago and Toronto. It doesn’t matter how hot it gets.

Post from: Umar in Dubai

The Heat Factor

RTA has announced the fares to be charged to the users of Dubai Metro, which is scheduled to start operating from September 9 this year.

In summary, the fares range from 1.80 to 6.50 dirhams, depending on the length of journey. Students and senior citizens can enjoy even cheaper rates. There will also be prepaid cards available to be used as an added convenience. And finally, if you have paid for the metro ride then you can use the connecting bus for free.

I think these fares are pretty reasonable. As I mentioned in my previous post about Metro, a major factor for it to be successful is the cost of using Metro. Now, if I have to go somewhere nearby and it is going to cost me only a couple of bucks, more often then I not I will use the metro, specially when I don’t have to worry about finding a car parking. If I take a taxi it will at least cost me 15-20 dirhams. If I take my own car I am burning fuel in addition to parking charges and all the time it would take to find parking.

So the metro makes more economical sense. I am eagerly waiting for the metro to start and see how it is managed. I intend to use it every chance I get.

Post from: Umar in Dubai

Cost of using the Metro

Spotted in the streets of Cairo. The car is as legendary as the band itself.

Post from: Umar in Dubai

Pink Floyd Fan in Cairo

If you live in Dubai (or UAE) and haven’t gone for desert safari then you haven’t really enjoyed the life in Dubai. At least that’s what most people say.

I got a chance to experience desert safari few days ago, and it to sum it all up, all I can say is that desert safari is a great thing to do if you get a chance, but it’s not something extra ordinary that one shouldn’t miss at any cost.

So here is how it works.

You reserve a seat, or an entire vehicle (usually a land cruiser or Nissan patrol or even hummer), depending on how big your group is, with the tourism company offering desert safari. The cost per person is around 250 dirhams. If you have big group you can get a better deal. They pick you up from a designated location (often from where you live) and then you are driven to a assembly point somewhere in the middle of a desert. That’s where all the vehicles assemble after picking up passengers from around the town.

Once everyone has joined all the SUVs make a caravan and start dune bashing. Dubai bashing is basically driving up and down the desert dunes like crazy. This can be extremely fun for some, while pretty boring for others. It also depends on the location as height of dunes can be different at places. Finally, the skill of the driver also plays an important role.

After the dune bashing you are taken to a camp in the middle of the desert. At the camp you can do many activities, such as eat and drink, smoke sheesha, ride a quad-bike, get henna tattoos on your arm (or wherever you want), and so on. The food is served after a couple of hours, which is just average. In my opinion desert safari experience should not be judged by the quality (or quantity) of food.

Finally, the day is concluded by belly dancers mesmerizing the viewers with their moves.

Post from: Umar in Dubai

Desert Safari Experience

While we are on the topic of investments why not talk about real estate as well.

A promising market

Dubai has a promising real estate market. So promising that few months ago it was one of the hottest and most rewarding markets in the world. Investors from all over the world were buying property in Dubai and the prices had reached at an unrealistic level. People were making profit overnight. Things were getting out of control.

The crash

Then suddenly the world came under the clouds of economic crisis and Dubai real estate market crashed miserably. Now the situation is that today the prices are more than 50% below what they were when the market was at its peak. And there are no signs of improvement. There is no buyer in the market and sellers are desperate to get rid of their property before it loses any more value. On top of that most lending institutions have either totally stopped providing finance or made it extremely hard to get approved for it. As a result it is almost impossible to buy property through a bank, unless you have at least 30% down payment available to pay in cash. No one is willing to risk the money because no one knows how much further the property values will drop. Everyone is just waiting and seeing, waiting for the market to hit bottom.

The opportunity

There lies an opportunity for those who are willing to take some risks, as well as for those who are paying high rents for prime property. The fact is, Dubai real estate market will bounce back. Sooner or later the prices will increase and profits will be made. As an investor all you need to calculate is how long you are willing to lock your investment before seeing any profit. And let’s be real here. Real estate has never been a short terms investment. People call it most secure investment because in the long term it has always been profitable. What was happening in Dubai during the peak time was never realistic and sustainable. So if you are willing to invest and wait for two to three years, then this might be the perfect time for you to get in. It’s no secret that property in Dubai is of highest class and projects like Dubai Marina, Springs, Palms and so on are work of art. You are getting real deals at the prices they are available at today. You can even negotiate a lower price, which was unimaginable this time last year.

There is also a second group of people who can benefit from the current state of real estate market. There are many residents of Dubai who are paying high rents to live in places like JBR, Greens, Arabian Ranches, and so on. This made sense when the buy price of houses and apartment in those areas was beyond reach. But now, you can just buy the property by making a down payment of 30% (which would be around the same as your yearly rent) and then making a monthly payment to the bank (which would again be same or lesser than what would you pay as rent). Now you are living in your own place and few years later you can sell it for profit. So if you have some extra money which you would spend on rent anyway, why not put it to some good use and invest it in property. Think about it.

Post from: Umar in Dubai

Investment in Dubai - Real Estate

There are many ways you can invest your money in Dubai in order to make it grow and earn some profit.

Few month ago real estate was the hottest investment in Dubai, but due to the financial meltdown no wants to invest in property of falling value. In fact, a large number of investors have lost millions because they invested just before the market crashed.

I will cover the real sector in a later post. In this post however, I plan to share some investment opportunities outside the real estate market.

There is still a lot you can do. Almost every bank in Dubai is offering incentives to deposit cash and savings certificates. Below is a list of some of those opportunities.

HSBC Bank is offering eSaver account with 5.0% pa interest on AED.

Mashreq Bank is offering 5.5% pa on their Easy Saver accounts.

Mashreq Bank is also offering saving certificates worth AED 1,000. These certificates don’t bear any interest but offer a chance to win a million dirhams every month.

This list will never be completed without National Bonds. Last year NB yielded over 7.07% profit, higher than any bank is currently offering.

Noor Islamic Bank is offering up to 7% APR on deposits of AED 5,000 or above plus a chance to win BMW or Toyota cars.

There are many other banks offering similar opportunities, but these are the ones being actively advertised these days.

If you have extra money that’s a good way to invest it. All the best.

Disclaimer: These opportunities exist at the time of writing this post. It is not guaranteed that they will exist at a later time. Please verify this information yourself before making any decision. Don’t blame me for losing your money .

Post from: Umar in Dubai

Investment in Dubai - Bank Accounts

Image Courtesy of Gulf News

I was listening to a radio interview with an official from Dubai Metro about the progress and roadmap for Dubai Metro. Then I came across this article about Dubai Metro. Both had one thing in common. They were highly ambitious and optimistic. And they had every reason to be that way. The project of Dubai Metro has the potential of changing the face of Dubai altogether, and it is very important for future of Dubai that Dubai Metro project executes successfully and achieves the targets it has set for itself.

One of the major problems that Dubai is facing today is increasing traffic. No matter how many roads and bridges are built, the traffic is still going to be a problem because there is no reliable and affordable public transport system. There are taxis but that’s hardly affordable and reliable. As a result people are forced to commute in private cars.

The main objective of Dubai Metro is to encourage people to leave their cars at home and use the public transport system. This includes the Metro rails, buses, and taxis all working together and complimenting each other. So, ideally, if a metro station is not within a walking distance of your home, a bus-stop should be. You can take the bus to a nearest metro station and take the train to a station nearest to your destination. The train-bus combination of urban transport has been working successfully for years in cities New York, Chicago, London and so on. One of the biggest advantages of using a metro is that you can accurately plan your trip because the trains strictly follow a schedule which makes it extremely reliable.

For Dubai Metro to be successful, it is very important that they price it right so that it is economical to leave your car behind and use the metro. If driving around town is cheaper than using metro then obviously people will choose to drive. We have seen many well designed projects failing because of poor execution or inconsiderate pricing. Dubai Metro cannot afford to have a similar fate.

I have a vision that someday I will be able to leave my car at home and use public transport for most of my commutes around Dubai. There is still a long way to go for this to become a reality. Slowly but surely, we are getting there.

September 9, 2009 is going to be an important day. That’s when first phase of Dubai Metro will start operating. I, for one, am looking forward to it.

Post from: Umar in Dubai

Dubai Metro is coming along pretty well

I am back in Dubai after spending three days in Riyadh and one day in Jeddah.

Riyadh has changed a lot. I could hardly recognize anything from the time I lived there. I tried to find the apartment where I used to live but I couldn’t. The neighborhood where I used to live has totally changed. Not a single landmark was there anymore. It used to be a suburb back then but now it was in the middle of the city.

Other than that, I found Riyadh to be a decent place. Of course there is no comparison with Dubai in terms of glamor and entertainment options, but even then Riyadh is nice place to live if you want a simple and hassle free life. Since there are not many options for entertainment, you end up saving a lot of money. Prices are also pretty cheap. Traffic is not as bad as Dubai. The malls offer more or less same brands as anywhere else. The only thing missing is movie theaters. Oh, and there is no beach.

But Jeddah takes care of this problem.

The only landmark I recognized in Jeddah was that huge bicycle on a traffic roundabout. It was there 20 years ago as well. We used to jokingly call it Adam’s bicycle. It sure brought back some memories of my childhood. I didn’t roam around in Jeddah that much as I was there for less than 24 hours. But one place I did check out was AlBaik.

AlBaik in Jeddah

It was worth every bite. Was it better than KFC? Well, perhaps it was because this particular outlet of AlBaik was right next to KFC, and KFC was totally deserted while AlBaik was jam packed. I guess that tells a lot about how popular AlBaik is in Jeddah.

So that’s how my KSA trip went. I am now back in Dubai with no trips planned at the moment. So I am trying to get the most of my time here and enjoy some quality moments with my family.

Post from: Umar in Dubai

Riyadh is a different place

My last business trip of this season covers Riyadh and Jeddah.

I lived in Riyadh over 20 years ago, when my father was posted there from 1986 to 1989. I am looking forward to go to Riyadh and Jeddah and see how much has changed over last two decades. It is going to be interesting.

Another reason I am looking forward to this trip is that there is nothing else planned after this. I will get some time to spend in Dubai with my family. I might even take a few days off and go for a vacation in Turkey or Greece. I deserve this vacation. I have been working really hard lately.

Post from: Umar in Dubai

Riyadh and Jeddah

The thing about Cairo is that it’s huge and it’s crowded. And the traffic has no order.

Twist of fate, my hotel is outside the city and all of my meetings are in or around downtown Cairo. So every morning I have to drive through the entire stretch of Cairo to reach the downtown/airport area and every evening I have to drive back to my hotel. This hardly leaves any time for anything else. As a result I have not seen the pyramids or the museum or any other place. What I did see was the city itself, and the fact that most buildings inside cairo are very old. Cairo has some of the oldest cars with some models from 50s and 60s. I still wonder how they are managing to keep those vehicles in running condition. The suburbs are modern with new buildings and villa type houses. I guess that’s where the rich people live.

So tomorrow is my last day in Cairo which as usual is fully booked with customers and partners of my organization.

I have to come back to Cairo some day to properly check it out and visit all the historical places.

Post from: Umar in Dubai

About Cairo