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Over the coming years, Al-Mazaya
Holdings Weekly Real-Estate Report
predicts the best real estate areas
for investment within the GCC will be
residential and tourism, especially at
the luxury end of the spectrum. Recent
statistics have shown that in Dubai,
this area of the real estate sector
continues to return large margins, and
a decline in the oil price is unlikely to
cause problems. Likewise, in Saudi
Arabia, residential and tourism real
estate are forecast to perform strongly.
We see investments in this area
totalling some SR25bn in 2015. Qatar
also shows good signs in this regard.
Mazaya Monthly Real Estate Report -
Week 3 - September 2015
11
Across the GCC, there is strong
momentum behind the industrial
sector,
ensuring
local
and
international investment into it
remains good. The downstream
hydrocarbon sector also remains
strong, posting healthy year-on-year
growth, and we see no reason for this
trend to reverse. GCC governments
have indicated they will continue
to invest in downstream related-
industry, especially where it pertains
to petrochemicals, refinement, gas
liquefaction, fertilisers, iron, steel
and food manufacturing. Where
downstream investment at the end
of 2010 was $222bn, in 2014 it was
$380bn, representing compound
annual growth of fourteen percent.
In conclusion, Al-Mazaya Holdings
Weekly Real-Estate Report states
that while a low oil price is not an
optimal situation for the Gulf’s
real estate sector, there remains,
thanks
to
recent
economic
diversification initiatives, much to be
optimistic about within the region.