Agthia forecasts gains through year

The food and beverage maker Agthia, based in Abu Dhabi, forecasts a slowdown in profit growth for this year as it grapples with the fallout of subsidy removal.

The company, which sells Al Ain water and Grand Mills flour among other brands, expects full-year growth in revenue of about 8 per cent, and 9 per cent for profit compared to a year earlier.

Profit rose 20 per cent to Dh231 million in 2015 from a year earlier.

“There has been a decline in market share in flour and animal feed business in Abu Dhabi, but we are trying to recover that through expansion in Northern Emirates and exports,” said Iqbal Hamzah, Agthia’s chief executive. “Next year would be a growth year through acquisitions in the beverage segment, exports and new products.”

Agthia expects to start exports in animal feed and flour to Oman and Qatar in December.

It wants to make an acquisition in the water segment in the Arabian Gulf region outside the UAE in the range of Dh200m to Dh300m before the end of the year. The acquisition would be funded through bridge financing to be converted into a long-term loan, Mr Hamzah said.

Agthia stock was unchanged on Wednesday at Dh6.

Subsidy removals led to slower growth across the group during the third quarter and was supported by the sales in the water division.

It reported profits of Dh54.8m for the three months to the end of September, a 1.1 per cent increase on the same per­iod last year. Revenues rose 2.7 per cent to Dh477.86m.

In the flour division, subsidy was removed in full from retail, trading and catering sales channels from September 1.

These will be removed by half for sales to the bakeries – Agthia’s largest customer group – from August 31 next year and in full from August 31, 2018.

The subsidies would continue for its sales to Abu Dhabi Muni­cipality and Khalifa Bin Zayed Al Nahyan Foundation.

Revenues from the flour division rose 2 per cent during the first nine months to Dh324 million compared with a year earlier.

In the animal feed division, subsidies were removed fully for supplies to Abu Dhabi Municipality and distributors from July 1.

The impact on revenues from the division was greater than in the flour section.

The revenues in the segment grew 1 per cent in the nine months compared to a year earlier to Dh520m.

“It is too early to say what the impact will be for next year,” Mr Hamza said.

The company said in August that changes in the subsidy regime would affect its net profit for this year by about Dh20m.

Its market share in retail flour sales is down to 31 per cent, from around 39 per cent before the subsidy removals. In animal feed, where it has increased prices in line with the market, Agthia said volumes have dropped about 20 per cent after the subsidy was removed.

In the first nine months, revenues in the water division grew 27 per cent year-on-year to Dh488m. In the beverages category, where it sells fruit juices, sales fell 2 per cent to Dh59m due to competition and new school regulations.

Sales across its dairy business surged 34 per cent over the same period to Dh24m.

In the emerging business category, which includes frozen vegetables, bakery items and tomato paste, revenues increased 31 per cent year-on-year to Dh108m during the first three quarters.

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Agthia forecasts gains through year

The food and beverage maker Agthia, based in Abu Dhabi, forecasts a slowdown in profit growth for this year as it grapples with the fallout of subsidy removal.

The company, which sells Al Ain water and Grand Mills flour among other brands, expects full-year growth in revenue of about 8 per cent, and 9 per cent for profit compared to a year earlier.

Profit rose 20 per cent to Dh231 million in 2015 from a year earlier.

“There has been a decline in market share in flour and animal feed business in Abu Dhabi, but we are trying to recover that through expansion in Northern Emirates and exports,” said Iqbal Hamzah, Agthia’s chief executive. “Next year would be a growth year through acquisitions in the beverage segment, exports and new products.”

Agthia expects to start exports in animal feed and flour to Oman and Qatar in December.

It wants to make an acquisition in the water segment in the Arabian Gulf region outside the UAE in the range of Dh200m to Dh300m before the end of the year. The acquisition would be funded through bridge financing to be converted into a long-term loan, Mr Hamzah said.

Agthia stock was unchanged on Wednesday at Dh6.

Subsidy removals led to slower growth across the group during the third quarter and was supported by the sales in the water division.

It reported profits of Dh54.8m for the three months to the end of September, a 1.1 per cent increase on the same per­iod last year. Revenues rose 2.7 per cent to Dh477.86m.

In the flour division, subsidy was removed in full from retail, trading and catering sales channels from September 1.

These will be removed by half for sales to the bakeries – Agthia’s largest customer group – from August 31 next year and in full from August 31, 2018.

The subsidies would continue for its sales to Abu Dhabi Muni­cipality and Khalifa Bin Zayed Al Nahyan Foundation.

Revenues from the flour division rose 2 per cent during the first nine months to Dh324 million compared with a year earlier.

In the animal feed division, subsidies were removed fully for supplies to Abu Dhabi Municipality and distributors from July 1.

The impact on revenues from the division was greater than in the flour section.

The revenues in the segment grew 1 per cent in the nine months compared to a year earlier to Dh520m.

“It is too early to say what the impact will be for next year,” Mr Hamza said.

The company said in August that changes in the subsidy regime would affect its net profit for this year by about Dh20m.

Its market share in retail flour sales is down to 31 per cent, from around 39 per cent before the subsidy removals. In animal feed, where it has increased prices in line with the market, Agthia said volumes have dropped about 20 per cent after the subsidy was removed.

In the first nine months, revenues in the water division grew 27 per cent year-on-year to Dh488m. In the beverages category, where it sells fruit juices, sales fell 2 per cent to Dh59m due to competition and new school regulations.

Sales across its dairy business surged 34 per cent over the same period to Dh24m.

In the emerging business category, which includes frozen vegetables, bakery items and tomato paste, revenues increased 31 per cent year-on-year to Dh108m during the first three quarters.

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Agthia forecasts gains through year

The food and beverage maker Agthia, based in Abu Dhabi, forecasts a slowdown in profit growth for this year as it grapples with the fallout of subsidy removal.

The company, which sells Al Ain water and Grand Mills flour among other brands, expects full-year growth in revenue of about 8 per cent, and 9 per cent for profit compared to a year earlier.

Profit rose 20 per cent to Dh231 million in 2015 from a year earlier.

“There has been a decline in market share in flour and animal feed business in Abu Dhabi, but we are trying to recover that through expansion in Northern Emirates and exports,” said Iqbal Hamzah, Agthia’s chief executive. “Next year would be a growth year through acquisitions in the beverage segment, exports and new products.”

Agthia expects to start exports in animal feed and flour to Oman and Qatar in December.

It wants to make an acquisition in the water segment in the Arabian Gulf region outside the UAE in the range of Dh200m to Dh300m before the end of the year. The acquisition would be funded through bridge financing to be converted into a long-term loan, Mr Hamzah said.

Agthia stock was unchanged on Wednesday at Dh6.

Subsidy removals led to slower growth across the group during the third quarter and was supported by the sales in the water division.

It reported profits of Dh54.8m for the three months to the end of September, a 1.1 per cent increase on the same per­iod last year. Revenues rose 2.7 per cent to Dh477.86m.

In the flour division, subsidy was removed in full from retail, trading and catering sales channels from September 1.

These will be removed by half for sales to the bakeries – Agthia’s largest customer group – from August 31 next year and in full from August 31, 2018.

The subsidies would continue for its sales to Abu Dhabi Muni­cipality and Khalifa Bin Zayed Al Nahyan Foundation.

Revenues from the flour division rose 2 per cent during the first nine months to Dh324 million compared with a year earlier.

In the animal feed division, subsidies were removed fully for supplies to Abu Dhabi Municipality and distributors from July 1.

The impact on revenues from the division was greater than in the flour section.

The revenues in the segment grew 1 per cent in the nine months compared to a year earlier to Dh520m.

“It is too early to say what the impact will be for next year,” Mr Hamza said.

The company said in August that changes in the subsidy regime would affect its net profit for this year by about Dh20m.

Its market share in retail flour sales is down to 31 per cent, from around 39 per cent before the subsidy removals. In animal feed, where it has increased prices in line with the market, Agthia said volumes have dropped about 20 per cent after the subsidy was removed.

In the first nine months, revenues in the water division grew 27 per cent year-on-year to Dh488m. In the beverages category, where it sells fruit juices, sales fell 2 per cent to Dh59m due to competition and new school regulations.

Sales across its dairy business surged 34 per cent over the same period to Dh24m.

In the emerging business category, which includes frozen vegetables, bakery items and tomato paste, revenues increased 31 per cent year-on-year to Dh108m during the first three quarters.

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British curriculum schools urged to reduce their fees

British curriculum schools should reduce their fees to reflect the impact of slowing growth in the wider economy says a new report by the consultancy Colliers.

Operators should establish what is described as an affordable fee structure in the range of £6,000 (Dh26,860) to £12,000 a year, according to the report released on Sunday.

Most British schools in the UAE target the high income segment with fees that range from £8,000 to £20,000 a year.

The consultancy says similar returns could still be generated by operators because of the reduced capital expenditure required, relatively faster ramp-up periods and higher utilisation rates with more students per class.

The ease of transferability of students within the English national curriculum school system worldwide is one of the main reasons for the popularity of such schools among the transient population of the UAE.

Dubai-based school operator Taaleem has three British curriculum schools within its portfolio of 11 schools.

“I certainly see the current economic situation affecting the number of people that are relocating to Dubai,” said Clive Pierrepont, a spokesman for Taaleem. “The oil prices have had a knock-on effect on the expatriate market, and at present there appear to be more families leaving than arriving in the UAE.”

The trend is expected to be balanced by the pick-up in the economy fuelled by Expo2020.

“Good schools will never slash fees because the majority of their overheads are staff costs and school performance is inextricably linked to the quality of teachers,” he said.

“The only way to economise is to cut staff salaries and increase the size of the classes. However, parents will only compromise on the education of their children as a last resort.”

Dubai will require an additional 55,000 to 74,000 places in the British curriculum schools by 2025, according to the Colliers report. About 38 per cent of private schools in Dubai offer a British curriculum.

In Abu Dhabi, where 24 per cent of the private schools follow the British curriculum, it is forecast to require 39,000 to 52,000 places in British curriculum schools by 2025.

Rising expatriate populations in the region in the years following the global financial crisis and before oil prices started to fall in the summer of 2014 drew a wave of investment into the education sector and the arrival of several new British curriculum schools.

One of the latest arrivals is Kent College Dubai, which accepted its first students this year.

Cranleigh opened in Abu Dhabi in 2014 and Brighton College in 2011. Repton opened in Dubai in 2007, followed by a branch in Abu Dhabi in 2013.

Repton Dubai has a boarding school component where the total fees range between Dh134,000 and Dh166,759 in the current academic year, up from between Dh120,979 a year to Dh161,199 a year in the previous academic year.

Cranleigh Abu Dhabi had fees starting at Dh65,000 and went up rising to Dh80,000 a year for year nine for the past academic period. In the 2015-2016 session, the fees did not change.

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SMEs advised to embrace wellness programmes

Small and medium sized businesses in the region need to embrace wellness programmes to improve their bottomline, reduce absenteeism and improve productivity, according to analysts and industry experts.

Medical inflation amid mandatory healthcare insurance requirements and an increase in premiums might spur employers to implement such preventive programmes, which have traditionally been neglected in the region, according to Robin Ali, the founder of the Consilient healthcare advisory firm.

“Wellness programmes need to be more than just screening, and need to be an ongoing programme with feedback from employees,” he said. “These need to address physical, occupational, psychological, environmental and social aspects of health at workplace.”

He was speaking on the sidelines of the SME Beyond Borders conference in Dubai yesterday.

The benefits of such programmes for smaller businesses include a better ability to attract talent, especially those who might need flexible work hours.

“We might not give the best package as a big company, but we offer above minimum health insurance as it helps attract top talent and makes sure they stay,” said Thea Myhrvold, the founder and managing director of EdTech Solutions, which runs online learning classes under the platform called Teach Me Now. “It is also helpful to attract working mums who are an untapped talent pool in the region.”

The Dubai-based company, which started in late 2013, started to hire last year. It now employs nine people, including Ms Myhrvold.

The premiums are rising every year, but it is more cost-effective to pay for the premium of nine people than when she had to pay for herself alone, she said.

To cater to the growing number of small to medium sized businesses (SMEs) looking to buy health insurance following the mandatory health insurance regulation in Dubai, Bupa Global and its partner in the UAE, Oman Insurance Company, will launch a redesigned programme for SMEs next month for Dubai and Northern Emirates.

“It would have choices based on restrictions on geographical coverage, restrictions of network and introduction of co-pay,” said Karim Idilby, the general manager for Bupa Global’s Middle East division.

Bupa has 600 SME clients covering around 6,000 employees with each having anywhere between three to 80 people. It has seen the number grow by five to seven per cent since last year as the mandatory health insurance requirement in Dubai took effect.

“The current trend is that there are not enough options, either you get covered for everything or not,” he said. “The challenge for SMEs is to get the right plan for their employees.”

There are around 135,000 companies that have fewer than 100 employees in Dubai. These SMEs are in the final group of employers who to had to adopt mandatory health insurance for their employees by the end of June.

About 40 per cent of these already provided health coverage to their employees, according to the Dubai Health Authority in June.

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Indonesia looks to UAE investing $10bn by next year

Indonesia expects to ramp up investment in mining and renewable power projects and boost the number of tourists it attracts from the UAE next year, the country’s ambassador to the UAE said yesterday.

Last year, the country attracted US$1.5 billion in total investments from the UAE. This year the figure is expected to double, with Indonesia’s new ambassador to the UAE looking to attract $10bn in investments next year.

Current UAE investments in Indonesia are small and far from their potential, said Husin Bagis, who was appointed in March.

“This needs to be improved,” he said. “We have Japanese, Korean, Chinese investments, why not Emirati investments in Indonesia? We are trying to do partnerships between Indonesian and UAE companies to submit tenders for projects.”

He was talking on the sidelines of the UAE-Indonesia Business Forum in Abu Dhabi yesterday.

Currently, the Dubai-based port operator DP World, Mubadala Petroleum and Dubai Islamic Bank have operations in Indonesia.

Trade between the two countries, has, however, slowed. According to the Indonesian embassy, total exports to the UAE were $1.92bn last year, down from $2.5bn in 2014. Its imports from the UAE were $1.35bn last year, down from $1.75bn in 2014.

Mr Bagis is ambitious about the tourist numbers from the UAE, which are expected to soar to 50,000 next year, up from about 15,000 this year.

“We are promoting Indonesia and are in talks with Etihad and Emirates to make new destinations in the country and increase frequency [of flights],” said Mr Bagis.

The UAE is also seeking investments from Indonesia, especially in the industrial and construction sectors, said Mohamed Helal Al Muhairi, the director general of the Abu Dhabi Chamber of Commerce and Industry.

Despite a global economic slowdown, Indonesia’s real GDP growth rate is forecast to improve modestly next year thanks to public spending and “accommodative” financial conditions, the IMF said earlier this month. Indonesia’s growth rate next year is expected to be 5.3 per cent, up from 4.9 this year and 4.8 last year, the fund said.

The IMF’s forecast for the UAE is grimmer, with the growth rate next year projected at 2.5 per cent, up from 2.3 per cent this year, but down from 4 per cent last year.

Indonesia’s economic figures reflect the confidence of some UAE investors.

“At present I don’t expect to see much volatility in the Indonesian currency,” said Ashique Husain, the founder and managing director of Dubai-based Tanzeem International, which trades in tin, nickel, copper, aluminium and other metals. “There is political stability and [assurances] of protection of investment and the country has enough domestic demand because of the large middle class.”

His company is looking to invest in mineral processing plants in Indonesia, which banned the export of raw minerals in 2014 to encourage domestic processing.

The UAE’s top export to Indonesia is petroleum and natural gas; its top import was jewellery and cars.

Among projects in Indonesia looking for investment and joint ventures with UAE companies are the Jatiproton Industrial Estate, four hydroelectric power plants in West Sumatra worth $19.6 million, the $424m North Bali International Airport and the $20m Jakarta Women and Children’s Hospital.

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Air traffic regulator sets out five-year strategy for airports

The General Civil Aviation Authority (GCAA) is working on improvements to the airspace over the UAE to allow for smoother flow of air traffic.

The GCAA said it would bring aircraft closer to improve their flow, reducing air corridor space while maintaining safety.

Laila Ali bin Hareb Al Mu­hairi, the GCAA’s assistant director general for strategy and international affairs, said restructuring airspace will help airports at Dubai, Sharjah and Abu Dhabi.

“That’s a huge project and now the strategy is going ahead more aggressively,” said Ms bin Hareb on the sidelines of the launch yesterday of the GCAA’s 2017-21 Strategy.

Also at the strategy launch were Sheikh Salem Al Qas­imi, the chairman of Ras Al Khaimah’s Department of Civil Aviation; Sultan Al Mansouri, the UAE Minister of Economy; and Saif Al Suwaidi, the director general of the GCAA.

Ms Hareb said the growth in air traffic over the UAE is sustain­able. At the Dubai International Airport, for example, there were 391,561 scheduled flights last year, up from 346,022 in 2014.

About 60 per cent of the UAE airspace is reserved for the military and the proportion is unlikely to change.

“The conversation is around how you restructure your airspace, not to take more airspace,” said Ms Hareb.

Major investment is expected at the Sheikh Zayed Air Navigation Centre, in Abu Dhabi, next year, according to the GCAA.

On Sunday, Dubai Air Navigation Services (Dans) said it had implemented a new air traffic management system that reduces delays in aircraft landings at Dubai International Airport.

Despite a slowdown in the economy, investment in the aviation sector is expected to grow.

“Local governments are looking at the aviation sector as the major economic driver,” said Ms Hareb. “Abu Dhabi, Sharjah, Dubai and even Ras Al Khaimah, even if they don’t have an airline, are looking at diversification, how to push the growth of aviation.” The rise in traffic at the smaller airports depends on their marketing strategies and ability to attract investments, she said.

The GCAA is also working on regulations for drones. “[Drones] are the future, we don’t want to put limitations on them, but at the same time [we are studying] how to make our airspace safe,” said Ms Hareb.

On September 28, Dubai International Airport was closed for about half an hour because of unauthorised drone activity. Drone flights are prohibited within 5 kilometres of airports in the UAE.

The following day, the GCAA issued a regulation that took effect on October 1. It requires drone operators to hold an operator’s certificate and liability insurance of at least Dh2 million.

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The Dubai-based division of Millennium and Copthorne Hotels is entering Turkey despite a tourism slowdown.

The Middle East and Africa unit of the London-headquartered hotel company signed a deal with Altin Istanbul to operate the Millennium Golden Horn Hotel. The 125-room Istanbul property is expected to open next year.

The Golden Horn neighbourhood is located on the European side of Istanbul, and previously featured a trading harbour and a residential area during the Byzantine period. The property is spread over 11,000 square metres and features renovated historic buildings. 

The Turkish tourism sector has nosedived after a series of terror attacks in the first half of the year and a coup attempt in July. This has been coupled with economic woes.

Still, the decline of the Turkish lira to its lowest against the US dollar in a year last week may offer some tourists better value for money.

During the second quarter, tourism income declined by 35.6 per cent to US$4.98 billion compared to the same period last year. The number of visitors decreased by 30.3 per cent compared to 7.49 million compared to a year earlier, according to the latest data from the Turkish Statistical Institute.

“The economic situation worsens as manufacturing, trade, retail and tourism slow down,” said Maya Shehayeb, an analyst at Euromonitor International. “The duration that the government will take to settle its international political conflicts and local tensions will dictate how quick it will improve the high-growth prospect.”

Millennium and Copthorne, similar to other UAE hotel operators looking to expand in Turkey, is banking on its popularity with Arabian Gulf visitors. 

“We are confident that due to concrete measures put in place by the government, Turkey’s tourism industry is on the path to recovery,” according to Francois Kassab, the chief operating officer at Millennium and Copthorne for Middle East and Africa.

Jumeirah Group expects to open its third property in Turkey in 2018. Hotel operator Rotana will add three properties in Turkey before 2020.

Millennium and Copthorne currently operates 28 hotels, including 10 in the UAE, and has 12 hotels in the pipeline in the next year. It expects to expand its portfolio to 100 properties by 2020 in the Middle East and Africa region.

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Ritz-Carlton comes to Abu Dhabi's Saadiyat Island

Abu Dhabi’s National Corporation for Tourism and Hotels is bringing the Ritz-Carlton brand to Saadiyat Island.

The hospitality group has signed a deal for operator Marriott International to manage its 300-room property, which will also feature villas. NCTH along with the Tourism Development and Investment Company (TDIC) is developing a 7.5 hectare plot of land on Saadiyat Island, which currently has St Regis and Park Hyatt hotels. The property will feature a beach spread over 9.5 hectares. There is no scheduled date for completion.

It will be the second Ritz-Carlton branded property in the capital after the Ritz-Carlton Abu Dhabi, Grand Canal, which is owned by Abu Dhabi National Hotels.

Among its other projects, NCTH expects to add 24 rooms to the 109-room Danat Jebel Dhanna Resort this quarter, and its Dhafra Beach Hotel will double its room count next year.

The company expects to open the 184-room InterContinental Abu Dhabi Grand Marina in 2018.

Marriott expects from next year to run two more Ritz-Carlton branded properties in Ras Al Khaimah, the first for the emirate, after it takes over the operations of Banyan Tree Al Wadi Desert Resort and Spa, and Banyan Tree the Beach in December.

While the waterfront property will be closed for renovations until May, the desert property will continue to accept visitors and carry on upgrades.

The desert resort, which comprises 101 villas with private pools, will continue to operate under the name of Al Wadi Desert, Ras Al Khaimah until May while undergoing a refurbishment. It will be rebranded as the Ritz-Carlton Ras Al Khaimah Al Wadi Desert from June. RAK National Hotels, a subsidiary of RAK Hospitality Holding, owns the property.

The beach property will be rebranded as the Ritz-Carlton Ras Al Khaimah Al Hamra Beach from June. Al Hamra Real Estate Development owns the property.

There are two Ritz-Carlton branded properties in Dubai.

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Dubai holiday homes give hotels serious competition

Holiday homes in Dubai are giving hotels a run for their money following the introduction of new regulations.

The Dubai Government started regulating holiday homes market in 2013, and since then there has been an increase in their numbers. In the first half of the year alone, there has been a 100 per cent growth in the number of holiday homes, a Knight Frank report released last week said.

At the end of the first half, there were around 4,200 units available in Dubai on Airbnb alone, up from around 2,000 for the entire last year.

In Dubai, residents can let out their apartments for short periods through portals such as dubizzle, Airbnb and Booking.com and through holiday home operators.

Thanks to the flexibility of holiday homes and their supply, it is easier for them to come to the market.

“What this means is that when the hotel and holiday home supply is taken as a whole, hotels will find their ability to monetise from peaks in demand diluted by additional holiday home inventory,” said Ali Manzoor, an analyst at consultants Knight Frank. “In light of fixed room supply, hotel operators have traditionally been able to charge aggressively during peak periods.”

Some hotel operators expect year-round pressure from the growing number of holiday homes.

“There will be an impact from holiday homes on hotels not just in the peak season but throughout the year,” said Russell Sharp, the chief operating officer at Citymax Hotels. “Holiday homes … will see greater demand in the years to come, with more cost-conscious travellers wanting to explore the region.”

The mid-market hotel segment, which includes Citymax, is particularly vulnerable. Citymax, a Landmark Group company, is set to double its portfolio from three hotels in Al Barsha, Bur Dubai and Sharjah in the next year with three more properties opening in Dubai’s Business Bay and Al Barsha as well as Ras Al Khaimah.

“With an increase in demand for this segment in Dubai, there will be a pressure on the mid-market hotels as the holiday homes will try and grab share of the same pie,” Mr Sharp said.

At the end of the third quarter, there were 86,151 hotel rooms in Dubai, according to research and analytics company STR.

“The additional supply of holiday homes will certainly put pressure on the average daily rates and also the [revenues] especially of mid-market hotels due to similar rates,” Mr Sharp said. “Holiday homes can afford to offer cheaper rates due to the lower investment and operation costs.”

A majority of the holiday homes are located in the upscale neighbourhoods on the Palm Jumeirah, Dubai Marina, Jumeirah Beach Residences, Dubai International Financial Centre, Al Barsha and Downtown Dubai.

These are the “areas that have high concentrations of hotel supply, which may prove to be problematic for the emirate’s hospitality sector in the long run”, according to a Knight Frank report released last week.

In the first half of the year alone, there has been a 100 per cent increase in the number, Knight Frank said.

The supply of holiday homes is expected to increase in older parts of Dubai, too, as Deira and Bur Dubai get regenerated.

The affordable hotels market is already under pressure from lower room rates in the luxury segment.

While upscale and luxury hotels have many facilities that are not found in holiday homes, such as signature restaurants, spas and meeting spaces, this is not the case for mid-market hotels and serviced apartments.

“The differentiation between their product offering and holiday homes is less pronounced,” Mr Manzoor said. “For this reason, we expect that the impact of the holiday home sector will be more severe on mid-market hotels and serviced apartments than the rest of the market.”

Holiday homes form only 4 per cent of the total number of rooms in Dubai, compared to 20 per cent and 29 per cent in Chicago and Berlin respectively. In London the figure is 38 per cent, according to Knight Frank.

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