4 MEA MARKETS / Q2 2021 NEWS MEAMARKETS / Q2 2021 5 NEWS “We’re now working on what would be our third transaction in the space”, Daniel Tromans, group treasurer at Etihad said. Etihad Airways is working on what would be its third financing transaction linked to sustainable investment considerations, the Abu Dhabi government-owned airline’s treasurer said on Wednesday. Environmental, social and governance (ESG) concerns are gaining ground in the oil-rich Gulf region, with borrowers setting up ESG frameworks to transition to greener economies and capitalise on a global surge in awareness of sustainability risks following the COVID-19 pandemic. “We’re now working on what would be our third transaction in the space”, Daniel Tromans, group treasurer at Etihad said on Wednesday, without disclosing details other than to say announcements could be made in the next few weeks. He was addressing a panel on sustainability at the ACT Middle East Treasury Summit, an online event. Etihad established a Sustainable Development Financing Framework in 2019, under which it raised 100 million euros ($117.14 million) to help fund the expansion of the “Etihad Eco-Residence”, a sustainable apartment complex for cabin crew. It also has a Transition Finance Framework through which it can raise cash via transition bonds, sukuk or loans, either through public transactions or private placements. Proceeds from debt sales under that framework are eligible to finance investments in next generation aircraft to replace old fleet and for research and development into sustainable aviation fuels. The airline has committed to net zero carbon emissions by 2050. Etihad last year raised $600 million via “transition” sukuk, or Islamic bonds - meant to help companies gradually switch to more environmentally sustainable operations. By Davide Barbuscia, Reuters News Price of villas in Dubai surges by 16%, in Abu Dhabi by 3.1% Real estate consultancy says residential property values in Dubai and Abu Dhabi have grown at their fastest rate since 2015 The price of villas in Dubai rose by 16.5 percent year-on-year in the third quarter of 2021, and a record breaking 54 homes worth $10 million or more have been sold in the emirate so far this year. The emirate’s villa prices also rose 5 percent from the second to the third quarter, according to provisional Q3 2021 data from Knight Frank, with property prices in both Dubai and Abu Dhabi rising at their fastest rates since 2015. Abu Dhabi’s residential property prices have increased by two percent year-on-year, with villa prices up by 3.1 percent and apartment prices up 1.8 percent year-on-year, according to Knight Frank. Faisal Durrani, partner and head of Middle East research, said: “The market is roaring back to life. The emerging euphoria around the fact that the UAE has the pandemic so well and truly under control, coupled with the excitement around the muchanticipated World Expo are adding to the confidence that is taking hold in the residential market.” Knight Frank said the UAE’s response to the pandemic had attracted wealthy buyers to locations such as the Palm Jumeirah and Jumeirah Bay, which had driven up villa values. “Unsurprisingly, the Palm Jumeirah and Emirates Hills account for almost 75 percent of super prime home sales in the city, but we are witnessing new Dubai submarkets such as Business Bay join the exclusive list of $10 million plus locations,” said Durrani. “It was only a matter of time before the ‘halo-effect’ from Downtown Dubai spilled over to surrounding markets, highlighting that not only is Dubai’s super prime market expanding, but it is also maturing.” The previous record for the highest number of $10 million plus homes sold in Dubai was set in 2015, when 31 homes of that value sold in the entire year. Of the 54 homes worth more than $10 million sold so far in 2021, 25 were in the Palm Jumeirah, 15 in Emirates Hills, seven in Dubai Hills Estate, two in Downtown Dubai, two in District one and one each in Jumeirah Bay Island and Business Bay, Knight Frank said in its report. By Zawya News Abu Dhabi’s Etihad working on third sustainable financing
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