< PreviousSUSTAINABILIT Y 30 Vol. 24/12, 16–31 October 2023 Proptech will play a key role in driving the Gulf’s tourism agenda for growth Tourists are our potential residents, with a right to know it all before they seal the deal Property buying is no easy process, especially when having to travel considerable distances in search of a place to call your own. Whether it’s purchasing upfront, renting or buying a property, the more complex the requirements are, and the more time it takes to navi- gate what can often seem an intimi- dating process. If one were looking to shift base a few years ago, there was little one could learn about a prospec- tive property without actually visiting it. However, thanks to Proptech, this is conveniently no longer the case. Today, homeseekers have the power vested in them to make informed choices, at the touch of a button and in a matter of a few seconds. BY ARI KESISOGLU, PRESIDENT OF PROPERTY FINDER REAL ESTATE Thanks to technology, homeseekers now have the power to make informed choices, at the touch of a button and in a matter of a few secondsarabianbusiness.com 31 REAL ESTATE Homeseekers from around the world are looking for a one stop solution that o ers them everything they need to know before calling a country their home Bridging borders with digital transformation In a dynamic market scenario, where people increasingly rely on their digital devices for information, there is a huge demand for platforms that o er all the information in one place. Home nding from afar can be an overwhelming journey to uncover, given the wide range of questions that come with this decision. These are not just limited to the type of home, location or price range. Homeseekers want to know more about the communities they live in and there is a growing appetite for platforms that can showcase prospec- tive neighbourhoods through virtual experiences. Such platforms help minimise ambiguity, whilst o ering aspirational imagery that motivates and inspires the home search journey. Comprehensive property market- places are a window for the world to nd homes within the UAE, supporting homeseekers with a crucial service that saves both time and money. With the emerging collaboration between tour- ism and real estate, we are constantly assessing homeseekers interests and feedback. Thanks to all the data we have at hand, its possible to decipher the specific needs and wants of consumers across a wide range of demographics, working on them closely as they evolve faster than ever. One of them being the need for a time-saving tool that allows for 360-degree data insights keeping in mind potential homeseekers' questions and concerns, easily accessible on a single user-friendly digital platform. For us, that tool is ‘Data Guru’ – a comprehensive tool that o ers home- seekers everything they need - from price data to community insights, a rent vs buy calculator and more. Navigating diversity through enhanced consumer experiences As the UAE’s tourism sector continues to see unprecedented success, a great deal of global investors and tourists are expressing interest in real estate prop- erties across the region. Given the wide range of tools and features available through proptech platforms, homeseekers from around the world are looking for a one stop solution that offers them everything they need to know before calling a country their home. With this comes the need to invest in enhancing consumer experience. We are seeing app down- loads and property searches transform rapidly with more speci c data points and preferences dominating customer engagement from the get go. Moreover, home seekers from around the world are rapidly in u- encing the state of investments in the region. Today, as ownership rises, off-plan spikes, digital platforms thrive and new communities emerge, we as proptech enablers are no longer just in charge of our own sector. We are also actively fuelling the nation’s goal for tourism and boosting its contribution to the national economy. As a leading industry player committed to serving the nation's ambi- tions, it is important to focus on embracing diversity when addressing consumer experience. Investing in trust, technology, talent and transpar- ency are key factors in sustaining this transformation and scaling the scope for years to come. When two of the nation’s most mainstream economic contributors come together – tourism and real estate - we can expect an exciting future to unfold, particularly in the realms of technology and AI. With abundant opportunities and limitless scope on o er, there’s a lot in store for home- seekers in the UAE, and seamless searches are just the beginning. With the right platforms to support, the stage is set for foreign investors who wish to nd their dream home in the UAE. $86.5BN The estimated size of the UAE proptech market Kesisoglu says comprehensive property marketplaces are a window to nd homes within the UAE There is a huge demand for property platforms that offer all the information in one place32 Vol. 24/12, 16–31 October 2023 SUSTAINABILIT Y Dubai Pearl demolition shows path for investors in cancelled real estate projects The UAE’s real estate laws and regulations compare favourably with other developed economies, in that there are clear guidelines around registration and titles and the systems are secure On a cool January morning, residents across Dubai Media City were startled by trem- ors, with many initially believing they were experiencing an earthquake. However, a look outside at the cityscape told a different story, as clouds of dust rose above a site which was once intended to be a 73-storey multi-tower skyscraper. A planned $6bn mega-project overlooking the Palm Jumeirah in Dubai, the Dubai Pearl was first announced in 2002, but has been on inde nite hold since 2009. Since then, there have been a series of ownership changes in the project. Finally, the project was formally cancelled by the Dubai Government and demolition commenced in early 2023. The ambitious development attracted many investors, some of whom have had their funds tied up in the project for over a decade. Inves- tors in Dubai Pearl may now be able to recoup their money through a BY SHANE JURY, PARTNER – HEAD OF COMMERCIAL DISPUTES MIDDLE EAST, ADDLESHAW GODDARD AND EMMA TORMEY, MANAGING ASSOCIATE – COMMERCIAL DISPUTES, ADDLESHAW GODDARDW REAL ESTATE The project, rst announced in 2002, included a 73-storey building, but has been put on inde nite hold since 2009 due to lack of investorsarabianbusiness.com 33 REAL ESTATE tribunal created to deal with failed real estate projects. Almost 13 years after the invest- ment was made, we recently assisted a client with successfully recovering their entitlements in connection with the cancelled project. Our team, working with UAE Counsel, acted for the client to recover the investment through a special tribunal established under Dubai Decree 33/2020. Decree and tribunal Decree 33/2020 was introduced to update the existing law in Dubai which governed un nished and cancelled real estate projects in the emirate. A special tribunal was created under the decree, which has broad powers to hear and determine all disputes, grievances and complaints arising from un nished, cancelled or liqui- dated real estate projects. For example, the tribunal has the power to liquidate any real estate projects which have been formally cancelled by the real estate regulator, RERA. The tribunal is also empow- ered to “settle” and determine the rights of investors in an un nished real estate project. The decree prohibits all courts in Dubai, including the onshore Dubai Courts, from hearing any disputes, appeals or complaints which fall within the jurisdiction of the tribunal. In terms of the tribunal’s process, it resembles that of a ‘normal’ onshore UAE Court litigation. Judgment on Dubai Pearl A judgment was issued by the special tribunal which, in summary, ordered that contracts entered into in relation to Dubai Pearl be rescinded and for the developer to pay back the inves- tors in the project. The judgment applies to a set list of investors which was prepared by the tribunal. If you are an investor in Dubai Pearl and would like to know if you are included in the formal list, please reach out and we can make the relevant enquiries (although a power of attorney document will be required for this purpose). The real estate development system of selling o plan (which refers to the practice of selling property before construction is completed) and recovering the full purchase price prior to completion is unique to the UAE. In most jurisdictions, o plan sales would only take a small deposit (often held in trust) with the balance due upon completion and issuance of title. The rest of the funding for the project would have to come from equity or bank debt. In the UAE, most of the project expenses can be funded through o plan sales with the sales proceeds going to a regulated third-party account and the o -plan sale contract registered with the Dubai Land Department. This means of funding can expose the project to market shocks, as sudden changes in buyer sentiment could see sales and payments slow down, leaving the project with liquidity issues. At one point, liquidated projects and the compensation ordered by the tribunal were publicised. This practice has, however, stopped. We are aware from working with clients of several decisions of the tribunal and the outcomes are variable, though we note there is a trend for the tribunal to work with stakeholders to minimise losses to all concerned. In most cases, and where possible, this will involve sourc- ing new investors to bridge funding gaps and see the project through to completion, particularly in projects that are already well advanced. There- fore, this process resembles more of an ‘administration’ rather than a ‘liquida- tion’ in most cases. In closing The UAE is committed to the above approach to real estate development – in other words, the operation of the tribunal under the decree – and over- all, this process has served the UAE and investors well. Some changes were made arising out of the global nancial crisis, such as requiring more project equity prior to allowing o plan sales, and even the establishment of the liquidated projects tribunal itself. $6BN The value of the Dubai Pearl project Selling off plan and recovering the full purchase price prior to completion is unique to the UAE, according to Tormey (top picture) and Jury If you are a listed investor, we can work with specialist UAE Counsel to enquire into obtaining reimburse- ment for you (either in full or in part) through the bespoke process estab- lished for failed real estate projects. If you are not a listed investor, we are more than happy to consider other avenues to claim for any damage you may have su ered. Our team’s specialist knowledge of UAE law and various dispute resolution processes may serve to help you recoup your investment. Real estate landscape The UAE’s real estate laws and regu- lations compare favourably with other developed economies, in that there are clear guidelines around registration and titles and the systems are secure. 34 Vol. 24/12, 16–31 October 2023 SUSTAINABILIT Y UAE’s private sector role: It is now or never in ght against climate change No single entity can tackle the enormity of climate change alone. Therefore, collaboration is key who adhere to fair labour practices or prefer eco-friendly materials can significantly reduce a company’s carbon footprint while promoting socio-economic equity. Corporate governance: Leading from the top Effective corporate governance is fundamental to driving sustainable practices within organisations. Lead- ers must set the tone by embedding sustainability into their strategic vision and operations. This includes risk management, decision-making processes, and performance metrics. A company’s board should be account- able for its environmental impact and should ensure all stakeholders are considered in its operations. HR practices: Engaging employees in the cause Creating a culture of sustainability begins with hiring employees who value this principle and providing them with the training and resources to implement sustainable practices. BY MEIRAJ HUSSAIN, HEAD OF CORPORATE SUPPORT, AL MASAOOD SUSTAINABILIT Y Businesses are often at the forefront of technological advancements and can leverage this capability to develop solutions that mitigate environmental impact The urgency of addressing climate change and promoting sustainability has never been more critical. The UAE private sector has a signi cant role to play in this global endeavour. As the UAE prepares to host COP28, the time for concerted action from businesses is now. Ethical procurement: Key to sustainability Companies can contribute to sustain- ability by ensuring that goods and services procured are not only cost-e cient but also environmen- tally friendly and socially responsible. For instance, sourcing from suppliers arabianbusiness.com 35 SUSTAINABILITY By pooling resources, sharing knowledge, and aligning e orts, we can accelerate progress towards a sustainable future Moreover, incentivising sustainable behaviours can drive engagement and commitment to the cause. COP28 and the Year of Sustainability: Pivotal moments for the UAE As the host of COP28, the UAE has a unique opportunity to showcase its commitment to sustainability on a global stage. Furthermore, marking 2023 as the Year of Sustainability under- scores the urgency of this cause. These developments will bring together governments, businesses, and civil society to provide solutions for our most pressing environmental challenges. Environment Vision 2030: A roadmap for Abu Dhabi Abu Dhabi’s Environment Vision 2030 provides a roadmap for the Emirate’s transition to a green economy. It outlines strategies for reducing emis- sions, conserving water, and promot- ing clean energy, among other goals. The private sector has a crucial role in achieving these objectives, whether through investments in renewable energy, implementing efficient resource use, or participating in envi- ronmental conservation e orts. The SDGs: A developing global framework The UN Sustainable Development Goals (SDGs) o er a comprehensive, ever-evolving framework for sustain- ability. They encompass social, economic, and environmental dimensions, and provide tangible targets for businesses to aim for. Companies in the UAE are encour- aged to align their corporate strate- gies with the SDGs to make a mean- ingful contribution to sustainability. Transparency and reporting: Holding companies accountable Transparency and sustainability reporting are essential for holding companies accountable for their envi- ronmental impact. Such reports provide insights into a company’s sustainability performance and demonstrate its commitment to responsible business practices. They invest in research and development of clean technologies, create products that consume less energy, or develop digital tools that enable efficient resource management. Innovation also extends beyond product develop- ment; it can encompass novel busi- ness models, partnerships, or strate- gies that contribute to sustainability. Collaboration: Together we stand stronger No single entity can tackle the enor- mity of climate change alone. There- fore, collaboration is key. Companies should seek to build partnerships with governments, non-pro ts, academic institutions, and even other busi- nesses to amplify their impact. By pooling resources, sharing knowl- edge, and aligning efforts, we can accelerate progress towards a sustain- able future. Public-private partnerships can drive large-scale infrastructure projects such as renewable energy plants or waste management facilities. Meanwhile, collaborations between businesses can foster industry-wide best practices and standards for sustainability. In the end, our shared commitment to preserving our planet unites us all. It’s time we harness this collective power for good. The ght against climate change requires collective action from all sectors of society. The private sector in the UAE, given its economic in u- ence and innovative capacity, is uniquely positioned to lead the way. Companies in the UAE are encouraged to align their corporate strategies with the SDGs to make a meaningful contribution to sustainability No single entity can tackle the enormity of climate change alone, Hussain says allow stakeholders, including inves- tors, customers, and employees, to make informed decisions while encouraging companies to continually improve their sustainability e orts. Innovation: A catalyst for change The private sector’s greatest weapon in the fight against climate change may be its capacity for innovation. Businesses are often at the forefront of technological advancements and can leverage this capability to develop solutions that mitigate environmental impact. For example, companies can 36 Vol. 24/12, 16–31 October 2023 SUSTAINABILIT Y Trillion-dollar crime: UAE ramps up ght against wildlife tra cking, poaching ahead of COP28 With COP28 approaching, the UAE is ramping up its crackdown on nancial crime networks sustaining the illegal wildlife trade and looming biodiversity crisis The UAE is ramping up its crackdown on nancial crimes related to wildlife tra cking and environmental damage ahead of the COP28 UN climate conference in Dubai this November, a government o cial tells Arabian Business. Director-General of the UAE’s Executive O ce of Anti-Money Laun- dering and Counter Terrorism Financing, Hamid Al Zaabi, says that illegal wildlife trade (IWT) has emerged as a top financial crime threat in 2023. BY TALA MICHEL ISSA, SENIOR REPORTER, ARABIAN BUSINESS “The UAE will focus more on nancial crimes relating to climate change, in particular Illegal Wildlife Trade,” he says. “Over 1 million species will go extinct over the coming decade if we do not change course.” IWT is a major transnational organised crime, which generates billions in criminal proceeds per year. Tra ckers exploit weaknesses in the nancial and non- nancial sectors to move, hide, and launder money, enabling further wildlife crimes and SUSTAINABILIT Y Mammals such as elephants, rhinos, big cats, and primates are especially vulnerable damaging nancial integrity. These crimes fuel corruption, poverty, and insecurity. It also threat- ens biodiversity and can have a signif- icant impact on public health and the global economy – all pertinent issues that are more relevant today than ever before as the world continues to grap- ple with the environmental and economic impact of climate change. “One of the major threats to nature is over-exploitation, including through wildlife poaching and traf- cking,” Al Zaabi explains. “1.7 million undiscovered viruses are thought to exist in wild animals, about half of which could spill over to people, including through illegal trade, markets, and consumption.” “If we include all species of wild animals and plants being tra cked, the World Bank puts the value of wildlife tra cking at about $200bn annually. If we add the costs of the impacts on arabianbusiness.com 37 SUSTAINABILITY 1.7 million undiscovered viruses are thought to exist in wild animals, about half of which could spill over to people, including through illegal trade, markets, and consumption ecosystem, and in particular their abil- ity to sequester carbon, then the World Bank estimates the value at a staggering gure of $1 to 2 trillion a year.” As it stands currently, the World Bank estimates that governments are losing up to $12bn annually through lost revenues – a topic which will be a subject of serious discussion at COP28 – which will run from November 30 to December 12 in Dubai. Hazem Mulhim, CEO and founder of compliance and payment solutions specialists Eastnets, based the UAE’s priority on this issue. “Environmental crime is worth around $110 to $281bn per year to the criminal community,” he says. “Fortunately, the UAE is aware of this trend in nancial crime and envi- ronmental crime overlap and has joined forces with the United Nations, Interpol, and other global entities to tackle this heinous crime trend.” Mammals like elephants, rhinos, big cats, and primates are especially vulner- able as they are targeted for their high- value parts like ivory and skins, accord- ing to the International Union for Conservation of Nature Red List. Reptiles however, such as turtles, tortoises, and snakes also face heavy pressure due to demand for their meat and shells used in medicine and jewellery. Tra ckers primarily obtain these animals from areas in Africa and South- east Asia where weak enforcement has led to over-exploitation of natural resources. Countries in these regions like Kenya, South Africa, Vietnam, and Malaysia have emerged as hubs for the illegal trade due to their proximity to operations and poorly regulated marketed, several reports suggest. Meanwhile, environmental crime as a whole generates hundreds of billions of dollars annually through activities such as illegal shing, logging and waste. Areas with lax governance and abundance of natural wealth such $200BN The value of wildlife traf cking each year, according to the World Bank Authorities need to prioritise countering the money flows linked to illegal wildlife trade in a manner commensurate with the scale of the risks as the Amazon in South America and South Asian jungles have higher rates of these extractive crimes. FATF calls on governments to prioritise IWT To more e ectively tackle the nancial aspects of wildlife tra cking, the FATF has provided guidance to governments on key actions that should be taken. Authorities need to prioritise counter- ing the money ows linked to illegal wildlife trade in a manner commensu- rate with the scale of the risks. Law enforcement and investigative agen- cies require robust mandates as well as the proper tools and training to conduct thorough financial probes related to wildlife crime cases. In a 2020 report, the FATF also urged the need for stronger coordina- tion between environmental and nancial authorities to ensure infor- mation is regularly shared and the nancial trails associated with traf- cking networks can be uncovered and disrupted. No country can ght such a trans- national threat alone, the body stressed. Robust international coop- eration between jurisdictions, as well as partnerships with inter-govern- mental groups and private sector entities will be pivotal.38 Vol. 24/12, 16–31 October 2023 SUSTAINABILIT Y Why youth involvement in climate diplomacy is so important By equipping young minds with the green skills we can empower them to be leaders in tackling climate change With climate change posing one of the greatest threats to our future, the need for urgent action is non-negotiable. While nations are coming together to tackle the issue head on, scientists continue to warn us that change is not happen- ing quickly enough to avoid the worst of climate impacts. To address the impact of global warming we need to start thinking with creativity, innova- tion and urgency - skillsets that are rich within our youth. International Youth Day demon- strated this, showcasing the abun- dance of talent around the world, and particularly here in the UAE. Harness- ing these skills and the desire to create a better future will be key in addressing the climate crisis, and to drive this forward, we need young BY MOUSTAFA BAYOUMI, RESEARCH FELLOW – ENERGY, CLIMATE CHANGE AND SUSTAINABLE DEVELOPMENT AT THE ANWAR GARGASH DIPLOMATIC ACADEMY (AGDA) SUSTAINABILIT Y By equipping young minds with the green skills, we can empower them to be leaders in tackling climate changearabianbusiness.com 39 SUSTAINABILIT Y In a business-as- usual scenario, the burden of the worst impacts of the climate crisis will fall on the youth and the next generations people to stand up and enact change. By equipping young minds with the green skills – the knowledge, values, attitudes and abilities required to live in, develop and support a resource-efficient and sustainable world – we can empower them to be leaders in tackling climate change. Laying the foundations through education is fundamental. Bringing climate science, sustainability and even elements of environmental diplomacy into the classroom will prepare our future scientists, entre- preneurs and politicians with an understanding of the action that is required. So, too, will promoting envi- ronmental change programmes and initiatives that actively encourage climate-focused innovation. The role of climate leaders As climate pressures grow, businesses are looking increasingly towards governments for guidance. With policy reform dictating much of the work that needs to be done, it is govern- ments and decision-making bodies who must lead the charge for change. Since the climate crisis is a global issue, it needs to be addressed multi- laterally. No single country or individ- ual are immune to its impacts or should spare e orts in tackling it. At a time when international tensions are heightened, the need for diplomacy has never been greater. Developing a sustainable pathway for governments and businesses to follow is a crucial step in creating a truly e ective approach to tackling climate change. Climate diplomacy is a cornerstone in developing such pathway, and one where today’s youth are an integral part of. COP28 - hosted by the UAE at the end of the year – provides a critical point for world leaders to signify their commitment to the cause. It is also a significant opportunity for young people to have meaningful involvement in climate action, with the Interna- tional Youth Climate Delegate programme entrenching 100 young people within the policy conference. This will shine a light on the value that Putting the future rst In a business-as-usual scenario, the burden of the worst impacts of the climate crisis will fall on the youth and the next generations – despite current increase in extreme weather events. Therefore, it not only seems right to have youth are involved in discussions about their future, and to be invited to partake in new and innovative thinking that is needed to unlock the answers. By involving young people in climate diplo- macy, not only do we get valuable insights into solutions, but we will also equip future generations with the tools necessary to tackle all the other chal- lenges that have come, and will continue to come, from the climate crisis. The UAE has stood out in its e orts to push the needs of youth to the fore, with initiatives that include appoint- ing a Minister of State for Youth A airs, establishing the Federal Youth Authority and making it mandatory for government entities to include Emiratis under 30 on their respective boards of directors. Progressive steps to ensure representation of young people has paid dividends, as the country continues to grow and adapt to global advancements ahead of many competing nations. With the understanding that the work we do today to tackle climate change is only valuable if the next generation is equipped to advance, it is a crucial moment for all stakeholders to ensure that youth are meaningfully engaged in tackling climate change. today’s youth can bring, while building key skills and competencies to continue the ght and encourage other young people to get involved. The conference will also highlight the important role diplomacy plays in tackling the climate crisis and the UAE has a unique oppor- tunity to further showcase leadership in supporting youth. Developing a sustainable pathway for governments and businesses to follow is a crucial step in creating a truly effective approach to tackling climate change Progressive steps to ensure representation of young people has paid dividends for the UAE, says BayoumiNext >