Al Mazaya Holding Company weekly report
believes Dubai still leads the way for GCC
real estate mega-projects, particularly as
a result of smart city programs which will
see considerable investment in transport
links, communications, infrastructure,
financial services and urban planning.
Increasingly, Dubai will provide all
government services under the smart
city concept with the aim of improving
citizens’ and visitors quality of life.
Dubai is also taking the lead in formulating
Sharia-compliant investment models
for construction, including sukuks, and
acting as a hub for Islamic banking.
Mazaya Monthly Real Estate Report - February 2014
3
Many analysts believe smart investors in the
Saudi market could see returns as high as
35 percent, while new regulatory measures
imposed on the market by government
bodies such as the Saudi Monetary Agency.
These initiatives, which in Dubai are well
regulated, are attractive for the region’s
investors and will likely see Islamic
architecture and related investment
continue to flourish in the emirate.
In Saudi Arabia, Al Mazaya Holding
Company weekly report points out
high prices are currently supported
by ongoing construction projects and
a strong pipeline of future projects;
however, corrections may occur in the
medium term as supply and demand
meet, especially in the residential sector.
The Ministry of Housing and the Real
Estate Development Fund are likely
to boost investor confidence and
bring the private sector to market.
Economic and political stability in Saudi
will help stimulate the market, as will
recent initiatives to make borrowing
cheaper at private sector banks. The
Saudi real estate market remains very
dependent on the country’s stock market.
Al Mazaya Holding Company weekly
report has in the past drawn attention
to the fierceness with which investment
sectors in the GCC compete with one
another. The real estate sector, for
example, must compete with stock
markets, industrial sectors and service
sectors. This year, as investor confidence
returns and more mega-projects are
announced, it is expected the real estate
sector will fare better than in recent years.
