Fuel prices continue to drop

Fuel prices in UAE continued to drop bringing cheer. The new prices declared by the Fuel Price Committee indicate an approximate 2.5% drop in petrol prices.

Th price for Super 98 at AED 1.95 is down from AED 2.00 last month while Special 95 has dropped to AED 1.84, down from AED 1.89 in Janaury.

Happy Motoring!

Al Salaam Mosque

Al Salam Mosque located in Al Barsha is an architectural masterpiece. The mosque was inaugurated in 2014 and can hold about 1,500 worshipers in its large prayer hall. The mosque represents distinctive Islamic architectural designs.

For directions to the mosque click here 

Do you have more details about this mosque? Can you add to the quality of this post? Write to myplacemyuae@gmail.com

Hassan Abbas Sharbatly Masjid

Constructed in 2018, this is a new addition to the Motor City neighborhood.   

For directions to the location click here

To visit Al Rustmani Masjid, click here

Time to prepay that mortgage?

As EIBOR rates continue to gallop northwards, is it time to consider early settlement or partial settlement of the outstanding mortgage loan?

Over the last decade, the property market in Dubai has provided its residents a very interesting investment opportunity. Property has been one of the most interesting investments in recent years and many residents have profited from it. While many of the larger investors have taken the cash route, a large percentage of current investors have taken the mortgage route to ownership. Hence as we come to the end of the low interest rate regime and we anticipate a sharp increase over the next few year, it is important to review the possible scenarios that mortgage holders face at this time.

Before we get into the possible scenarios and options facing the investors, let us first look at the interest rates over the last few years and quarters. A key benchmark in the country remains EIBOR or the Emirates Inter Bank Offered Rate and many of the mortgage loans are linked to this key reference rate. The EIBOR itself is a daily reference rate published by UAE Central Bank based on the average interest rates at which UAE banks offer to lend to other banks in UAE. So how has the EIBOR changed over the last few periods? For the sake of comparison, we have looked at EIBOR over the last 3 years from the period January 2015 to Mar 2018.

You will note that relatively slow rate of change since 2015 until the last quarter of 2017. Since the last quarter of 2017 you will also note the sharp increase in the rate moving from 1.56% to 2.30% within a period of 6 months. This trend is expected to continue as US Fed Reserve continues to suck out money and trim down its balance sheet with at least 2 more rate hikes expected this year.

Looking forward into the future, what could be the possible options available to the mortgage holder in UAE? Every individual’s situation and circumstances are very unique and hence the final decision needs to be carefully thought through based on your own risks and opportunities.  This blog does not in any way make any recommendations but only presents a few possible options available.

The first and foremost consideration for any individual needs to be setting aside emergency funds. Have you set aside the required funds aside for the possible extreme emergency like situation? It would be important to set aside at least funds to cover your day to day living for a period of 6 months. This includes your rent, car loan, utilities, school fees, grocery bills etc. Only once you have set aside emergency funds should you consider any scenario related to prepayment of your mortgage.

Most experts would advise you to never prepay your mortgage given that it is possibly the cheapest loan you have in your portfolio. This holds completely true so long as the excess funds can be deployed into more profitable investments. If possible avenues for investment and expected returns exceed the cost of loans, it would be prudent to deploy the funds into other investments like equity or equity related funds. As an example, if the cost of your loan is 4% and potential returns from investments is say 5%, it would be good to continue with your investment plans subject to cost of your loan remaining the same over a reasonable period. If the return on other investments and cost of your loan (after assuming any increase in costs of loan over the near future) are the same or if the return on investment is lower than the cost of finance, it would be worthwhile to prepay your outstanding loans. Based on the fact that we seem to be at the latter part of a business expansion cycle, it would be worthwhile to factor potential investment risks in the future.  

If you have excess funds available and do not see interesting investment opportunities in the near future, you may consider using part of the funds to prepay an outstanding loan. Remember excess funds refers to all funds after the emergency fund has been set aside. Once needs to calculate all costs and benefits based on your own unique situation. However I have made assumptions to illustrate the situation below.

Assumptions:

• Current Outstanding loan: AED 700,000
• Cost of finance: 4.75% with a potential increase to up to 5.25% over next 12 months
• Remaining tenure of loan: 7 years
• Hence the EMI is approx. AED 9,812/-

Based on the above, the total payout amounts to AED 824,184/-. This includes a payment of finance cost of AED 124,184/-.

Assuming that you have AED 200,000/- unutilized ‘excess’ funds in your account and assuming that you have ticked off all potential investment opportunities, what is the potential impact in case you consider repaying part of the outstanding loan amount? If you decide to make a prepayment of AED 200,000/- and the EMI remains the same, there is a potential saving in finance cost of approximately AED 64,740/- as compared to the current cost of AED 124,184/-. For details refer to the table below.

Total savings on making a prepayment of AED 200,000 amount to AED 64,670/- while also reducing the tenure from 84 months to around 57 months.

As mentioned previously, each individual’s situation is unique and any decision related to prepayment needs to be taken by you based on your unique situation. In my case, I see merits in making a prepayment as I have unutilized funds in my bank which can better utilized by making a partial payment of my outstanding mortgage?

How does this compare to your situation? What are your thoughts on this strategy? Leave your comments below.

This post is in no way intended to be advice to any individual. Each reader needs to analyse his or her unique situation and take the most appropriate decision that suits him or her. 

Ali Bin Abi Talib Masjid

The Ali Bin Abi Talib mosque is one of the most beautiful and a unique mosque located near Safa Park. The mosque is notable for its colorful azure blue facade and architectural design.

If you need directions to the mosque click here

Visit other mosques in Dubai by clicking here

Do you have more information about this mosque? Write in to myplacemydubai@gmail.com

Dubai Fitness Challenge

Calculate your gratuity

This is only a broad guideline and does not represent the UAE law. Please refer to the concerned authorities and your lawyer for accurate information. 

Calculating your end of service gratuity is something that comes up very frequently in conversation between Dubai residents? And why not? It is extremely important to be aware of the rules for calculation of gratuity so that one can clearly manage one's financial plans and also be up to speed in case the situation arises. 

The starting point is the type of contract one has with his or her employer. There are 2 types of contracts and yours will fall into one of the types. Either an unlimited contract or a contract for a limited time. Before we get into the details of gratuity let us first differentiate between the 2 types of contracts. 

A limited contract is one where both parties have agreed that the contract for employment is for a set number of years with a start and end date. In this case, the employee is not allowed to resign prior to the end of the contract. An unlimited contract as the name suggests is for an unlimited number of years and therefore has no end date. 

An employee is eligible for end of service gratuity after completing a minimum term of 1 year with the employer. The below applies to onshore companies only. Free zones may follow their own set of rules. 

Gratuity in case of a limited contract

Service between 1 and 5 years
Gratuity is calculated at 21 days basic salary multiplied by number of years in employment
Service between 3 and 5 years
Gratuity is calculated at 30 days of basic salary multiplied by number of years in employment


Gratuity in case of an unlimited contract

Service between 1 and 3 years
Gratuity is calculated at one third of 21 days basic salary multiplied by number of years in employment
Service between 3 and 5 years
Gratuity is calculated at two thirds of basic salary multiplied by number of years in employment
Service beyond 5 years
Gratuity is calculated at full 21 days of basic salary multiplied by number of years for the first 5 years. thereafter gratuity is calculated at full 30 days of basic salary multiplied by number of years in service for the years after the first 5 years. 

Emirates plays a marketing 'trump' card yet again

Emirates' new commercial 'Let Us Entertain You' is hilariously entertaining to say the least!!!!

The quick turnaround time in which Emirates put the new commercial in place is astounding. Here we are not referring to the technical or production issues but the speed of decision making and the funny concept itself. No doubt most of the contest has been taken from the existing commercial featuring Jennifer Aniston but the response from Emirates to USA's recent new ban on passengers carrying laptops and other larger electronics devices is amazing. 

Watch the new commercial here and its bound to tickle your funny bone (keeping in mind the ban)

Be My Guest

While Dubai Photo Story has always taken pride in creating original content, we couldn't help but be in awe of the new #BeMyGuest campaign by Visit Dubai. 

Proud to be resident of Dubai! 

Check out the new #BeMyGuest campaign. Come to Dubai! Come!!!

Fun Times at Dubai Rugby Sevens

The Emirates Rugby Sevens represents the best standards of Rugby with Olympic gold medalists on show. But the other big draw at the Emirates Airlines Rugby Sevens has always been the color and fun put together by the fans. It is one of the best family events in the calendar and this year was no different. 

Check out pictures of the colorful fans at this year's event. 


Check out our post on the main events at the Emirates Airlines Rugby Sevens. Click here

2016 Dubai Rugby Sevens

Dates: 1st Dec to 3rd Dec 2016

And let the games (and the fun) begin.....

Aside from the extremely high and world class rugby on show, Dubai Rugby Sevens is also an excellent day out for the entire family. The tournament has over the years built a strong community around it. 

This year South Africa emerged the well deserved winners of the men's title. The Blitzboks claimed the top spot after they beat last last season's series champions and Olympic gold medalists, Fiji, 26-14.

Meanwhile England managed to come into third place after a remarkable 33 -1 0 win over Wales. 


Remember to check out our events page. Click here

If you'd like to see the fun times at the event click here

A journey through history - Ibn Battuta Mall

Over the last decade, one of the landmarks that has always held a special place for me is Ibn Battuta Mall. While malls in Dubai are normally flashy and glitzy, each one attempting to out do the other on the glamour quotient, here is a mall that brings history and culture to the fore. 

Ibn Battuta Mall is probably an intriguing journey of the region's culture and the journey of a young man and adventurer Ibn Battuta. His travel over 24 years spanning various lands is an extraordinary story depicted in the 6 courts that make up the mall. The walls and ceilings of the mall are adorned in intricate designs and architecture to depict each leg of his journey. 

While the mall provides an excellent shopping experience with round the year offers and deals, it is highly recommended that you set some extra time to explore the story of Ibn Battuta as you walk across the mall. 

@Faz3 sets Instagram on fire

A photo shared by His Highness Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum on Instagram is taking the internet by storm. With out 110,000 likes within a couple of hours, the picture shows the Crown Prince of Dubai seated in the London Underground. In the picture he is in the company of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai.

The picture speaks a thousand words about the leadership of Dubai. At a time when UK struggles with the results of the recent Brexit referendum, the timing couldn't have been better. The picture sends out a strong message to the world. The evolution of Dubai over the last 2 decades into one of the greatest cities in the world has been phenomenal. This evolution points the world to the vision, courage and ambition of Dubai's leadership in shaping the destiny of the city while also shaping the destiny of millions of citizens of the world. The timing couldn't be better and I hope this photo inspires the leadership of UK over the next few weeks and months.

To connect with  His Highness Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum on Instagram click here.

If you can't travel to Dubai Mall

If you are stuck in London, can't afford the flight tickets to Dubai and still want to visit Dubai Mall! 

But if you are keen to look around the real Dubai Mall in Dubai click here

Musabah Bin Rashid Al Fattan Mosque

For directions to this mosque click here

Arabian Ranches

Located off Sh. Mohammad Bin Zayed Road, Arabian Ranches is a premium villa community and one of the oldest in the freehold areas of Dubai. Developed by Emaar Properties, Arabian Ranches is set against a desert background and combining Arabic and European architecture, it is one of the most prestigious residential communities. Particularly popular with the expat community, it comprises of 23 neighborhoods each supported with its own recreation facilities including swimming pools and tennis courts. 

For directions to Arabian Ranches click here. 

Al Rustmani Masjid

A recent addition to Dubai's landscape, Al Rustmani Masjid was build in 2015 and is located near Jebel Ali Village. 

For directions to the mosque click here