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Similarly, the integrated budget of the
UAE increased by 7.81% for the fiscal
year 2015 reflecting a gross amount of
AED 56 billion; that is a AED 4.1 billion
increase compared to 2014. The above
reveals that the GCCs upcoming budgets
are outstandingly strong; they have
the intrinsic ability to stand against the
challenges, support the development
expenditure, resume the pending projects
and reduce the impact of a decrease
in oil prices on infrastructure projects.
Mazaya Monthly Real Estate Report -
January
2015
3
Strong and Stable Banking Sector:
Al-Mazaya Weekly Report adds to the
significance of a strong and healthy banking
system able to sustain the development
and investment trends equally mobilizing
the public and private sector projects' and
control the funds available to the real-estate
sector. Not surprisingly, securing the GCC
banking system against any threats or any
unfavorable turnovers will maintain the Real
Estate economic activities and hike the growth
rates towards its intended targets in 2015. In
the same lines, Mody's Bank Credit Rating
Agency has rated GCC banks as stable in
2015. The Banking Sector in the GCC is the
main beneficiary of the overall government
expenditure, growing finance policies and
expenditure pumped to infrastructure projects
in spite of the decreasing oil prices ultimately
and strongly signals progressive growth in
credit the banking system to the avail of all
sectors, especially the real-estate sector. In
the medium-term, the GCC's banking sector
will be less impacted by the reduce taking
place in oil rates where as Moody's favors
GCC banks in light of the economic boom and
public expenditure, especially given the rooted
assets and natural resources available adding
to the enhanced commercial and consumable
activities and positively reflecting favorable
banking and credit growth rates and assets.
Contemporary Real-Estate
Regulations:
Al-Mazaya Weekly Report points to the
need to formulate additional rules and
regulations to regulate the GCC real-estate
market ultimately and positively stabilizing
real-estates in the region and adding to
its long-term growth. The recent increase
in market activities reflect the need to
develop rules and regulations necessary
to sustain the outcomes achieved so
far, to support more growth, to meet the
local and external demand and to avail
the required supply that is equivalent to
current financial and economic standards.
In order to best utilize the cross-continental
investments and capitals in the years
to come, it is necessary to upgrade and
unify the current regulations amongst the
GCCs which will help to regulate the real-
estate market, attract more investments,
standardize
ownership
procedures,
minimize the investment challenges and
eventually materialize the GCC Common
Market given the major contribution
of the real-estate sector in GDP.