United Arab Emirates: November 15 - 2005

Nakheel voted the 'World's Leading Tourism Property Developer' in prestigious award ceremony in London

Nakheel, the UAE's premier property developer, has been voted the World's Leading Tourism Property Development Company at the World Travel Awards 2005

The World Travel Awards was established more than a decade ago, and are now recognised as the global travel industry's Oscars. The World Travel Awards 2005 took place at The Royal Opera House in London on Sunday 13th November. The awards are voted for by travel industry professionals worldwide, and this year more than 175,000 people from 200 countries registered to vote for the awards. Voting was up more than 10% on 2004; the criteria for voters was choosing "the travel professionals choice." Nakheel beat off stiff competition from other nominees to gain the title of the World's Leading Tourism Property Development Company.

Sultan Ahmed bin Sulayem, Nakheel Executive Chairman, said,

"This is a great honour for both Nakheel and Dubai; to be recognised by industry professionals as the world's leading tourism property developer illustrates the positive impact our iconic developments have made on a global stage. One only has to look at the size of the event, and the calibre of the other award winners, to appreciate how prestigious the World Travel Awards is."

"It rounds off what has been an excellent year for Nakheel with such highlights as the launch of Dubai Waterfront and the sale of AED 13 billion worth of land of the first phase, Madinat al Arab, within five days; the hugely successful opening of Ibn Battuta Mall; and the announcement of our exclusive partnership with The Trump Organization to develop 17 Trump brands in the Middle East - starting with The Palm Trump International Hotel and Tower on The Palm, Jumeirah."

The spectacular award ceremony was attended by leading business people and celebrities from throughout the world. Nakheel Executive Chairman, Sultan Ahmed bin Sulayem headed a strong Nakheel presence at the award ceremony, including James Wilson, Chief Executive Nakheel and Dubai Waterfront Company and other Nakheel senior management; Manal Shaheen, General Manager VIP Sales received the award itself on behalf of Sultan Ahmed bin Sulayem. Nakheel also hosted a number of key partners and supporters at the event, including Alan Leibman, President and Managing Director Kerzner International, and Elaine Jones, Chief Executive Officer Asteco. The entertainment at the spectacular award ceremony was provided by the world's most famous circus, Cirque du Soleil.

Graham E. Cooke, President of the World Travel Awards, said "Dubai has been one of the Middle East region's great success stories in terms of the growth of its tourist market; the number of visitors to Dubai has doubled in the last five years with more than 5 million in 2004. A key factor in this excellent growth has been Nakheel's spectacular and iconic real estate developments - which not only stand up as luxury property developments, but tourist attractions in their own right. The extensive global coverage they have gained has been a key factor in promoting Dubai on a world stage - and this has been recognised by travel professionals at the World Travel Awards. Nakheel is a more than worthy winner of the World's Leading Tourism Development Company."

What looks far more probable is that building will eventually overtake demand, but only sometime after real estate prices have reached a substantially higher level than exists today. Why should a villa in Dubai cost less than one-third of the cost of a house outside London? Disposable income is probably higher in Dubai.

Only when real estate prices in the Middle East start to approximate to average global prices – perhaps Singapore is the benchmark – should investors begin to feel concerned.

In the meantime there is plenty of money for investors, speculators and end-users in this great property boom, although it is heartening to see the Dubai authorities taking effective action to put a cap on the profits of speculators who have ruined many property booms before with excessive greed.

Eventually there will be a position when too much new-build comes into the market at prices that are no longer behind world prices. At that time property owners will have to decide whether to get out quickly, or hold on through a slowdown.

And in property those with a long-term perspective do best in the long run, although this maybe a lesson that has to be learned painfully by some in the region.