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Mazaya Monthly Real Estate Report -
Week 3 - October 2016
The report underlined the importance
of Gulf investments finding out other
investment opportunities in the region’s
markets, even in developed countries,
including China, Turkey and Indonesia,
where realty markets are posting high
yields without any indirect or direct
economic or political repercussions.
The report highlighted that some of
the risks that private and public Gulf
businesses could be exposed to in
the US should Saudi Arabia decide to
withdraw from the US market – this
includes cash and asset investments.
A new major world financial crisis
could be triggered if the Gulf countries
scaled down their new investments
in the US, resulting in drastic pricing
deviations in all economic platforms.
In conclusion, the report called upon all
Gulf companies and organisations to
invest their growing revenues from the oil
industry in other fields like finance, real
estate and industrial markets that are likely
to generate more investment momentum
and improve the business environment.
ThegraveimplicationsoftheJusticeAgainst
Sponsors of Terrorism Act (JASTA), in
case of its enactment into a law, would
outweigh those of the presidential
elections on Saudi-US relations at all
levels. The act, if enforced, would have
a drastic impact on eminent Saudi
figures, credit institutions and charity
organisations that will be required to pay
billions of dollars in damages. This will
create a gloomy scenario that could cause
a large portion of foreign investments
to flee back to local Gulf markets.
The Arab and GCC states are major
trade partners of the US, with the trade
exchange between the US and the
UAE reaching $25 billion by the end
of 2015 and US-Saudi trade exchange
posting good growth rates in the
same year, rising up to SR170 billion.
In the meantime, Qatar is planning to
pump more than $35 billion in direct
and indirect investments into the
US. In addition, Gulf investments in
the US are estimated at $612 billion.