AljadaTRADE ANALYSIS REPORT25 FEB 2019

Site Analysis

▪ Aljada is a masterplanned mixed-use development that is currently anundeveloped 2,236,015m² plot of land. The site lies north east of SharjahIndustrial Area, south of Sharjah International Airport, and adjacent toSharjah University City. The plot is bound by Al Dhaid Road E88 to the northand University Road to the south.

▪ The project benefits from good connectivity, via Al Dhaid Road, to two mainarterial roads within the UAE, namely Emirates Road E611 to the east andSheikh Mohammed Bin Zayed Road E311 to the west.

▪ Apart from its close proximity to, and good access from, the E311 and E88highways which will be beneficial to the wider Sharjah residentialpopulation, the project’s retail components will also benefit from the onsiteresidents and workers within the project.

▪ The site is located within an area of predominantly residentialneighbourhoods to the north west and south east. University City, adjacentto the project, is home to over 15 educational institutions attended by morethan 20,000 students.

▪ Access to and egress from the site via Al Dhaid Road relies heavily on theconstruction of two raised junctions. Whilst access and egress are stillpossible without these planned junctions, it would negatively impact traffic.

▪ Currently Matajer Al Juraina mall is the only significant retail developmentwithin close proximity to the site. Future retail developments within closeproximity to the site include City Centre Al Zahia and an upcoming lifestyledestination by Sharooq. Details are explored in the Supply Analysis section.

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KEY FINDINGS

Entrance to University City

Street retail along University City Road

Site Analysis

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CONTEXT MAP

Source: Google Maps; McARTHUR + COMPANY Analysis

SHARJAH

PROJECT SITE

DUBAI INT’L AIRPORT

SHARJAH INT’L AIRPORT

UNIVERSITY CITY

CITY CENTRE SHARJAH

SAHARA CENTRE

Site Analysis

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ROAD NETWORKS

Source: Google Maps; McARTHUR + COMPANY Analysis

PROJECT SITE

SHARJAH

SHARJAH INT’L AIRPORT

UNIVERSITY OF SHARJAH

Site Analysis

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LOCAL AREA MAP WITH Aljada MASTERPLAN SUPERIMPOSED

Source: Google Maps; Erga; McARTHUR + COMPANY Analysis

5 km

SHARJAH

UNIVERSITY

CITYMUWAILEH

COMMERCIAL

SHARJAH AIRPORT

FREEZONEMUGHAIDIR

SUBURB

AL FALAH CITY

RESIDENTIAL

SHARJAH

HEALTHCARE CITY

INDUSTRIAL

AREA

AL

JURAINA

SRTIP

Site Analysis

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ACCESS

Source: Google Maps; McARTHUR + COMPANY Analysis; WOODS BAGOT Aljada Schematic Master Plan Presentation

SHARJAH

PROPOSED NEW ROAD NETWORK

ACCESS PENDING ROAD NETWORK

PROPOSED PRIMARY ENTRY POINTS

PROPOSED SECONDARY ENTRY

Site Analysis

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EGRESS

SHARJAH

PROPOSED NEW ROAD NETWORK

EGRESS PENDING ROAD NETWORK

PROPOSED PRIMARY EXIT POINTS

Source: Google Maps; McARTHUR + COMPANY Analysis; WOODS BAGOT Aljada Schematic Master Plan Presentation

Site Analysis

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SITE PHOTOS: SURROUNDING AREA WITHIN 5KM RADIUS

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2

3

4

1 2

3 4

Demand Analysis

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EVERYDAY ESSENTIALS: PRIMARY TRADE AREA DEFINITION

As stated above, the determination of the actual primary trade area (PTA) foreach individual development is based on a combination of internationalbenchmark guidelines and factors reflecting the realities on the ground in thelocal area.

With a proposed residential population of 50,072, the recommended quantumof GLA catering for everyday essential needs of the community is equivalent to aCommunity retail centre. As such, according to international standardguidelines, we can expect customers to arrive from not more than around 10kmradius from the centre or 20mins drive. This radius takes in most of Sharjah Cityand northern Dubai.

Competition for everyday essentials retail offerings in the area, however, is highand is set to intensify in the coming years. To the east of the site, the expandedMatajer Al Juraina is expected to cater for the needs of residents of Al Noufe, AlQaraeen and University City. To the south of the site, the low income residents ofMuwaileh Commercial are catered for by the street level retail along UniversityCity Road and within the development, while Al Mamsha has retail provisionwithin the masterplan. To the west, the suburb of Mughaider and residents of AlZahia will be catered for by the forthcoming City Centre Al Zahia.

Conclusion

We expect, therefore, that the PTA for the everyday essentials offering of Aljadawill include the residents of the development itself. The development couldexpect to derive up to 70% of its turnover from customers residing in the PTA.

Secondary trade area

We expect the remaining trade to be generated by staff working in Aljada, hotelguests & visitors, as well as occasional trade from residents, workers andvisitors of the surrounding areas.

Rendering of residential apartments neighbourhood in Aljada

Rendering of gated community in Aljada

Demand Analysis

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EVERYDAY ESSENTIALS: PRIMARY TRADE AREA MAP

UNIVERSITY CITY

DISTRICT

SIAF ZONE

PROJECT

AL QARAEEN DISTRICT

AL NOUFE DISTRICT

MUWAILEH COMMERCIAL

DISTRICT

AL SENAIYAT DISTRICT

(SHARJAH INDUSTRIAL AREA)

MUGHAIDAR DISTRICT

AL ZAHIA

SRTI

PARK

AL MAMSHA

WASIT DISTRICT

SHONOOF DISTRICTSHARJAH INTERNATIONAL

AIRPORT

E311

ALJADA

Demand Analysis

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EVERYDAY ESSENTIALS: PRIMARY TRADE AREA POPULATION & HOUSEHOLDS

The residential population of the primary trade area, Aljada, is calculated by thedeveloper to be 50,702.

We have assumed that the residential units of Aljada will be delivered in phasesover a period of time leading up to 2026, based on Arada statements to thepress. We have also assumed, for the purposes of measuring potential demandthat the units will be fully occupied.

We estimate, based on country-wide averages for the size of non-Emirati familyhouseholds that the average household will comprise around 3.6 people. Assuch, we estimate that the number of residential households in Aljada willincrease over time, and that there will be around 14,084 households uponscheduled completion in 2025/2026.

Zone Unit 2020 2021 2022 2023 2024 2025 2026

Population at

Full Occupancy# 900 8,400 16,800 25,200 33,600 42,000 50,702

Average People

per Unit *# 3.6 3.6 3.6 3.6 3.6 3.6 3.6

Total

Households# 250 2,333 4,667 7,000 9,333 11,667 14,084

New Units # 250 2,083 2,333 2,333 2,333 2,333 2,417

Source: Population from Developer. McARTHUR + COMPANY Analysis. Note * Assumption based on UAE standards for non-Emirati family households

Rendering of Aljada

Demand Analysis

There is no official data on incomes and spending patterns for Sharjah. In orderto determine the likely future spending capacity and breakdown for the residentsof Aljada, we have based our estimates on historical Household Expenditure andIncome Survey data published by Dubai Statistics Centre.

Although average households incomes in Dubai (as suggested in terms of GDPper capita) are much higher in Dubai than in Sharjah, we expect the potentialresidents of Aljada to be of an upper-middle income bracket. We have taken asthe basis our estimates, the spending capacity and breakdown for the averagenon-Emirati family household in Dubai. Although we believe that the populationmix is likely to include some Emirati families, the majority of the residentpopulation is likely to be non-Emirati familiies.

We have forecast the historical data forward based on an expected annualaverage increase in incomes and prices in the range of 2-3%. The data yields anaverage spending per household on Housing (ie mortgages, rent and householdutility bills in the region of AED76,000 by 2020, which we believe will beapproximately in line with the average for Aljada.

In order to determine the amount of spending that can be targeted by a retailoffering such as that of the project, we have summed together all spending ofFood (including food, drink and tobacco) and Miscellaneous (which includesother groceries, personal goods and services such as hairdressing). We havecalled this total the Everyday Essentials Spending.

By 2020, we expect residents of the PTA to spend an average of AED41,318 peryear on everyday essentials, rising to AED48,150 by 2026.

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EVERYDAY ESSENTIALS: PRIMARY TRADE AREA INCOMES AND EXPENDITURE

Average Annual Expenditure

per Household (AED)2020 2023 2026

Food * 29,379 31,792 34,237

Apparel 4,330 4,686 5,047

Housing 76,474 82,756 89,119

Home 6,062 6,560 7,064

Healthcare 1,796 1,943 2,093

Transport 23,339 25,256 27,198

Comms 11,508 12,453 13,411

Recreation 4,672 5,055 5,444

Education 21,511 23,278 25,068

Restaurants 10,038 10,862 11,697

Misc * 11,939 12,919 13,913

TOTAL 201,048 217,563 234,291

Everyday Essentials Spend* 41,318 44,712 48,150

Source: McARTHUR + COMPANY Analysis

Demand Analysis

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EVERYDAY ESSENTIALS: PRIMARY TRADE AREA SPENDING POTENTIAL

In order to determine the total amount of spending on everyday essentialswithin the primary trade area of the project, we have multiplied the householdcount for each year by the average annual spending per household.

As such, we expect the total spending on everyday essentials by residents of theprimary trade area to increase gradually over time, reaching AED678 million by2026.

Unit 2020 2021 2022 2023 2024 2025 2026

Households # 250 2,333 4,667 7,000 9,333 11,667 14,084

Average RDE

Spending per

Household

AED 41,318 42,557 43,621 44,712 45,830 46,975 48,150

Total RDE SpendAED

million10 99 204 313 428 548 678

Source: McARTHUR + COMPANY Analysis

Rendering of Al Waab Residential District

Demand Analysis

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LIFESTYLE CENTRE: PTA AND POPULATION 2026

PROJECT

Demand Analysis

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LIFESTYLE CENTRE: POPULATION BY DISTRICT

City District 2017 2020 2023 2026

Sharjah Hay Al Layiah 4,031 4,341 4,675 5,034

Sharjah Al Sharq 19,510 21,631 23,983 26,590

Sharjah Al Hyrah 12,485 13,445 14,479 15,592

Sharjah Al Riqah 8,906 9,590 10,328 11,122

Sharjah Halwan 6,655 7,167 7,718 8,311

Sharjah Mughaider 17,024 18,333 19,743 21,261

Sharjah Wasit 15,925 17,149 18,468 19,888

Sharjah Tugariet Muwaileh - 7,200 29,491 80,924

Sharjah University City 47,888 51,571 55,536 59,806

Sharjah Al Qaraeen 13,513 14,552 15,671 16,876

Sharjah Al Rahmanneya 3,416 3,843 4,322 4,862

Sharjah Al Bedea 1,205 1,355 1,525 1,715

Sharjah Al Siyuh Suburb 731 1,483 2,456 3,573

Sharjah Jiwezia Suburb - 10,000 38,080 65,345

Sharjah Al Majaz 151,276 167,722 185,956 206,173

Sharjah Al-Noufe 10,325 11,119 11,974 12,895

Sharjah Al Falaah 382 442 511 592

Sharjah Al Tayy Suburb - 800 2,662 3,152

Ajman Zorah - 178 1,037 4,247

Ajman Jerf 1 4,621 4,903 5,204 5,522

Ajman Hamidiyah 14,290 15,165 16,093 17,078

Ajman Raqaib 1 5,432 5,764 6,117 6,491

Ajman Raqaib 2 6,311 7,731 9,470 11,602

Ajman Jerf 2 3,029 3,215 3,412 3,620

Ajman Rawda 7,828 9,062 10,490 12,143

Ajman Muiahat 6,899 7,986 9,245 10,702

Ajman Rumailah 1,427 1,515 1,608 1,706

Ajman Meshairef 7,344 7,794 8,271 8,777

TOTAL 370,452 425,054 518,522 645,599 Source: McARTHUR + COMPANY Analysis based on Sharjah Census 2015 and Ajman Census 2016.

We expect the primary trade area of the lifestyle retail offering of Aljada toextend to the mid- to upper-income districts of Sharjah and Ajman.

The population figures by district in Sharjah are forecasts based on 2015 Censusdata from Sharjah’s Department of Statistics and Community Development. Thepopulation figures by district in Ajman are based on the preliminary data fromthe 2016 Census, with breakdown by district based on estimated populationdensity and district area.

We have excluded the lower and lower-middle income districts of both cities (asdepicted in the Household Income Levels map above. These districts include AlNahda, Al Khan, Al Qasimiyah and Al Gharb, Al Senaiyat, the southern half ofTugariet Muwaileh and Al Sajaah districts of Sharjah, as well as Jerf Industrial,Jerf Industrial 3, Emirates City, parts of Jerf 2, Ajman Industrial Area, AlRashidiya, Nakhil, Al Bustan and Ajman Free Zone in Ajman.

We expect the population to rise from around 370,000 in 2017 to reach around645,000 by 2026.

Among the highest growth districts in terms of absolute population we expectTugariet Muwaileh (including Al Zahia, Aljada and Al Mamsha), as well as JiweziaSuburb (including Tilal City), as well as the more established district of Al Majaz.

Demand Analysis

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LIFESTYLE CENTRE: PTA POPULATION & HOUSEHOLDS

Item Nationality 2017 2020 2023 2026

Population Total 370,452 425,054 518,522 645,599

Population Nationals 152,788 169,203 187,417 207,629

Population Non-Nationals 217,663 255,851 331,105 437,970

Average Household Size* Nationals 6.6 6.6 6.6 6.6

Average Household Size* Non-Nationals 3.6 3.6 3.6 3.6

Households Nationals 23,150 25,637 28,397 31,459

Households Non-Nationals 60,462 71,070 91,974 121,658

Households Total 83,612 96,707 120,370 153,117

Source: McARTHUR + COMPANY Analysis based on Sharjah Census 2015 and Ajman Census 2016. Note * Assumption based on UAE standards for non-Emirati family households

Data on the number of household units by district is not available for Sharjahand Ajman. However, we have calculated the number of households for theprimary trade area based on the population figures split by nationality and thebenchmark UAE average household sizes by nationality.

As such, there were around 83,600 households in the primary trade area in2017, including over 23,000 Emirati family households. By 2026, we expect thenumber of households to exceed 153,000, including more than 31,000 nationalhouseholds.

Neighbouring Al Mamsha project in Sharjah

Demand Analysis

There is no official data on incomes and spending patterns for either Sharjah orAjman. In order to determine the likely future spending capacity and breakdownfor the primary trade area of the lifestyle centre at Aljada, we have based ourestimates on historical Household Expenditure and Income Survey datapublished by Dubai Statistics Centre.

Although average households incomes in Dubai (as suggested in terms of GDPper capita) are much higher in Dubai than in Sharjah, we expect the potentialcustomers of the lifestyle centre at Aljada to be of a mid- to upper-incomebracket. We have taken as the basis our estimates, the spending capacity andbreakdown for the average Emirati and non-Emirati family households in Dubai.

We have forecast the historical data forward based on an expected annualaverage increase in incomes and prices in the range of 2-3%.

In order to determine the amount of spending that can be targeted by a lifestyleretail offering such as that of the project, we have summed together all spendingof Recreation (such as cinema tickets) and Restaurants (including cafés, fastfood, restaurants and impulse food & drinks vendors). We have called this totalthe Dining and Entertainment Spending.

By 2020, we expect Emirati households in the PTA to spend an average ofAED26,305 per year on dining and entertainment, rising to AED30,654 by2026.

By 2020, we expect non-Emirati households of the PTA to spend an average ofAED14,709 per year on dining and entertainment, rising to AED17,142 by 2026.

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LIFESTYLE CENTRE: PRIMARY TRADE AREA HOUSEHOLD INCOMES AND EXPENDITURE

Average Annual

Expenditure per

Household (AED)

Emirati Households

2020 2023 2026

Non-Emirati Households

2020 2023 2026

Food 75,108 81,277 87,527 29,379 31,792 34,237

Apparel 12,613 13,649 14,698 4,330 4,686 5,047

Housing 37,656 40,749 43,882 76,474 82,756 89,119

Home 38,899 42,094 45,331 6,062 6,560 7,064

Healthcare 5,211 5,639 6,073 1,796 1,943 2,093

Transport 58,453 63,254 68,118 23,339 25,256 27,198

Comms 28,432 30,768 33,134 11,508 12,453 13,411

Recreation * 9,403 10,176 10,958 4,672 5,055 5,444

Education 22,706 24,571 26,460 21,511 23,278 25,068

Restaurants * 16,901 18,289 19,696 10,038 10,862 11,697

Misc 36,633 39,642 42,690 11,939 12,919 13,913

TOTAL 342,014 370,109 398,567 201,048 217,563 234,291

Dining & Ent.

Spending*26,305 28,465 30,654 14,709 15,918 17,142

Source: McARTHUR + COMPANY Analysis