City

What will it take to revive Jebel Ali?

Traction, increasing residential real estate capacity, tax incentives among the suggestions to relaunch the area

As we made our way through the clouds and started the descent into Dubai World Central (DWC), I glanced over the glorious buildings of the world’s greatest show, Expo 2020, and the surrounding areas of Jebel Ali and Dubai South.

This got me thinking about why this part of Dubai hasn’t attracted the same level of interest and investment as other more sought-after areas such as Downtown Dubai or Dubai Marina.

Looking back at my 18 years of experience in the UAE, and the Dubai real estate sector more specifically, I recalled that several of the projects that were launched throughout the years in and around the Jebel Ali unfortunately failed to entice investors and home buyers to move into that area and become part of its growth story.

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I started to think about the reasons while looking down at vast areas of land and a unique location that is at the cross-roads of Dubai and Abu Dhabi. The reasons were quite clear to me why this part of Dubai was held back, and there were many.

Firstly, the area has long been regarded as being out of the way and home to logistics, warehousing, and industrial space, with the occupying businesses benefiting from the thriving Jebel Ali port and free zone.

Additionally, there were no major amenities and services that are being built such as malls, hospitals, educational institutions, and a transportation network to attract people and investors. Some of these are just starting to come into play today.

In addition, the area suffered in prolonged launches of major projects like the final DWC airport expansion, Dubai Parks and Resorts, The Outlet Village, Dubai Wholesale City, The Palm Jebel Ali, and Dubai Waterfront.

From a residential perspective, the area can be only promoted as a location for a primary home and not as a second or vacation home. This also comes down to the fact that Jebel Ali area was not a priority for major developers. Instead, these mega developers built attractive residential projects elsewhere supported by massive marketing campaigns that created waves around the world and attracted homeowners and investors from every corner of the globe.

<img width="1024" height="683" src="https://www.arabianbusiness.com/cloud/2022/06/06/Ibn-Battuta-1024x683.jpg" alt="" class="wp-image-721023" srcset="https://www.arabianbusiness.com/cloud/2022/06/06/Ibn-Battuta-1000x667.jpg 1000w, https://www.arabianbusiness.com/cloud/2022/06/06/Ibn-Battuta-1024x683.jpg 1024w, https://www.arabianbusiness.com/cloud/2022/06/06/Ibn-Battuta-768x512.jpg 768w, https://www.arabianbusiness.com/cloud/2022/06/06/Ibn-Battuta-400x267.jpg 400w, https://www.arabianbusiness.com/cloud/2022/06/06/Ibn-Battuta.jpg 1200w" sizes="(max-width: 1024px) 100vw, 1024px" />
Ibn Battuta Gate. Image: Shutterstock

It is this phenomenal success in many areas of Dubai that leads me to believe the same can be replicated for Jebel Ali area extending from Ibn Battuta to the Abu Dhabi border. The area still has much playing in its favour.

Just three months ago it hosted one of the largest global events ever with 24 million visits and as such more people are familiar with the location. The infrastructure and transport network makes it one of the most connected areas in Dubai with one of world’s busiest ports, an international airport, a unique private jet terminal, as well as a ground transportation network and a metro station.

The area also hosts major global events such as the Dubai Airshow and the new Dubai Exhibition Centre will continue to grow this space. Many of the large projects are also now open or close to completion, such as the Palm Jebel Ali.

Reviving the Jebel Ali area

But we still need to build on these factors to essentially relaunch the area from Ibn Battuta Mall to the border of Abu Dhabi.

First, the area needs to create and sustain traction. The easiest and most feasible way to do this would be to move or create major branches of services and facilities from the current congested locations near and around Jebel Ali and Dubai South.

For instance, the Dubai Land Department and RERA, Dubai Municipality, RTA headquarters, DEWA headquarters, Etisalat headquarters or even the American University in Dubai can all benefit from expanding their locations to reach more people and enhance their offering.

Jebel Ali
Many of the large projects in Jebel Ali are now open or close to completion. Image: Shutterstock

Second, increase the residential real-estate capacity by offering smaller land parcels around District 2020 to developers on auction basis so that development will be distributed over many smaller developers and assist in speeding up the pace of construction.

Third, provide incentives on taxation for all developers to build all-inclusive hotels, a category heavily needed in Dubai. This will allow the UAE to compete with other markets, such as Turkey, in this hospitality space.

Fourth, allow the development of leisure and entertainment destinations similar to the historically successful Irish village adjacent to a newly established public beach resembling Kite Beach to attract residents and tourists.

Finally, rebrand the area as the many names that exist in that area are failed names. I would suggest adopting District 2020 to the whole area from Ibn Battuta Mall to the Abu Dhabi border. The inclusion of South may not always imply an upward, successful outlook, especially from a branding perspective, going South is never positive.

As the descent is completed and the plane’s wheels touched the tarmac, my thoughts became grounded, and I was reassured of Dubai phenomenal success story as a global destination. By working together, we can add this piece to the city’s success narrative.

Ziad El Chaar, vice chairman at Dar Al Arkan Properties.
Source:
Written by Ziad El Chaar

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