Ajman sewerage company to boost real estate investment climate

The new sewerage system is set to deliver an important service to the residents of Ajman by enhancing its economic development and significantly improving health and environmental standards in Ajman. It will also help to lengthen the lifespan of buildings in the Emirate and lower maintenance costs through the environmental improvements.

Mr. Abdulla Al Jasmi, the owner of one leading real estate firm, Al Jasmi Real Estate, explained: "The connection fee that property owners have to pay does not mean that property owners will increase the rent rates to recover the money.

"I believe this project is a necessity and the people of Ajman are looking forward to the major benefits it will bring with it. The construction of this sewerage system will play a major role in attracting investment from property developers and give real estate agents the opportunity to market a quality product."

Mr. Al Jasmi argued that rent rates in the real estate market in Ajman will continue to depend on demand and supply as it does in other Emirates as the primary driver for rates in both the short and long term.

He added: "We should look at the Ajman Sewerage System as a service that will complement the other utilities and facilities currently offered to residents. Not only will it improve living standards but also it will provide additional benefits to the emirate like water for irrigation and the opportunity to add to the greenery and overall beautification of the emirate.

"This project will give a useful high quality infrastructure for Ajman, enhance investments in the real estate sector and generally contribute to the economic development of the emirate that covers investment, tourism and real estate sectors."

Ajman Sewerage (Private) Company Limited, in partnership with Ajman Municipality, has launched a high profile awareness campaign in the Emirate of Ajman to promote the benefits of the new Dhs 515 million sewerage development project and to encourage property owners to fulfill their legal obligation to register in order to benefit from the modern new system.

Mr. Ali Al-Janahi, of the Al Janahi Real Estate Centre in Ajman, who represents more than 60 property owners from the UAE and the Gulf, said: "The sewerage project will definitely improve the real estate market in Ajman and attract more investors. The improvements to the environment created by the project will also mean that properties will last longer and that the cost of maintenance will also fall because of the better climatic conditions created.

"The project, however, will not effect the rental prices of tenants. For example if you compare the connection fees to the cost of a new building this will be a fraction of the cost of its construction. This should not affect rents but in fact will add value to property owners by attracting more residents from outside Ajman and improve the Emirate's ability to compete with other areas because of the enhancement to the local environment and improvements to public health in the area."

"If rents for flats and apartments did rise this would decrease the demand on those residential units in the Emirate and this is not what property owners are looking to achieve. They are primarily looking to improve the quality and service of this sector."

Under the regulations of the Ajman Sewer Law, enacted last year by His Highness Sheikh Humaid bin Rashid Al Nuaimi, The Ruler of Ajman, every property owner must legally register their property with the Ajman Sewerage (Private) Company Limited and later pay a compulsory connection fee.

Construction of the sewage treatment plant has already commenced and design of the network system comprising pumping stations and underground pipework has reached a stage where installation will commence in the very near future.

Ajman Sewage (Private) Limited Company General Manager, Mr. Bob Taylor, said: "We are tremendously encouraged by the support from the real estate sector here in Ajman and we are happy to know that residents are beginning to show better understanding of the project and the benefits it will bring. Ajman Sewerage Company is committed to connecting the entire city of Ajman to the new sewerage system within four years with some areas getting connected in only 18 months time".

The Ajman Sewerage (Private) Company Limited is a joint venture company owned by the Government of Ajman, Thames Water, Black and Veatch and Six Construct. Thames Water and Black and Veatch are two world leaders in the provision of wastewater services and infrastructure systems and Six Construct, part of Belgium's Besix, is a leading civil and infrastructure constructor.