Rent situation unlikely to improve

Dubai: For many residents, the new year adds shine to the UAE's already considerable appeal despite the high cost of living, traffic and job insecurities.

In fact, many felt these issues were due to the UAE's charm and ability to draw people from all parts of the world, seeking new professional horizons.

A recent Gulf News poll found that rent was the biggest issue that concerned residents for 2007, with 72 per cent respondents. Traffic came a distant second with 17 per cent while job security came in last at 11 per cent.

Rents

Good cheer for the new year does not extend to the rent situation either with the rent situation in Dubai and the rest of the UAE unlikely to improve next year as demand continues to outstrip supply.

Essam Al Tamimi, managing partner at Al Tamimi and Company and property market analyst, told Gulf News that he did not see a decrease in demand anytime soon. "The demand for property will still be high next year. As long as there is an influx of people coming through Dubai Airport, there is no end to the high rent situation," he said.

Al Tamimi said although there will be ultimately an end in sight for the high rents plaguing residents, it might take some time for supply and demand to equalise "probably in mid-2008 and most likely in 2009".

Any legislation to solve skyrocketing rents cannot be fully effective as it applies only to present tenants seeking to renew their contracts with their landlords. "There is no way to put a ceiling on rental agreements for new tenants because each building has its own attributes, such as location and amenities," he said.

Traffic

He said rent laws distinguishing between business, commercial and residential property would help.

"The cap should be lower for residential property, higher for retail, with business [office spaces] somewhere in between," he added.

For 2007, anyone brave enough to take on Dubai roads and its difficult traffic can expect stricter legislation designed to curb lawlessness and reduce congestion.

One of the changes is the punishment system with the stricter implementation of black points in motorists' driving licences.

Brigadier Mohammad Saif Al Zafein, Director of Dubai Police's Traffic Department, said beginning the new year, errant motorists would receive black points on their driving licenses whether it was an on the spot fine or an absentia fine.

"The situation will change and there will be 24 black points in one year rather than the current 12 points, but the number of black points will increase for various offences," he said.

Shaikh Hamdan Bin Mohammad Bin Rashid Al Maktoum, Chairman of Dubai Executive Council, had approved a new traffic control system for Dubai, which will be implemented starting January 1, 2007.

The black points are a number of specified points given to a motorist depending on the traffic offence he or she commits. If a motorist acquires 24 points in one year for the first time, his driving licence gets confiscated for six months and his vehicle gets confiscated for one month.

Job security

However, if he gets 24 black points in one year for the second time, his driving licence gets cancelled, his vehicle is confiscated for three months and he is required to re-enter the driving test after one year of acquiring 24 black points.

"We have a strategy and orders to increase the number of radars and place cameras that catch red signal jumpers on every interchange, which will be implemented next year with around 1,200 cameras," Brigadier Al Zafein added.

Job security is something expatriates should not worry about, feels Humaid Bin Deemas, Assistant Undersecretary at the Ministry of Labour.

"I think with the beginning of 2007 the job market will become more stable and people will feel more secure in their jobs," he told Gulf News.

He said this was because His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, listed "the well being and rights of all workers in the country regardless of nationality [as one of] the top priorities".

"Cooperation between different governmental departments such as the DNRD, the labour rights committees, labour court along with increased number of Ministry of labour inspectors will ensure a high level of job security," he added.