6 / 11
6
Al-Mazaya Holdings Weekly Real-Estate
Report states that Gulf countries are
amongst the most attractive in the world
for real estate investment, due to a variety
of factors. Economic diversification plans
are significant; theybring largeworkforces
into the region in need of housing, and they
facilitate foreign investment. Investors
are keen to place money into economies
that demonstrate an appetite for progress
through investment in innovation –
internationally competitive economies
are more likely to generate strong returns
on investment than non-competitive
ones. For this reason, international
investors typically like Gulf countries.
Al-Mazaya Holdings Weekly Real-
Estate Report notes that there is
a healthy appetite amongst GCC
governments
for
developments
sufficiently large to qualify for mega-
project status. In fact, we have lately
seen mega-projects being announced
with a frequency that matches that of
the pre-global financial crisis years.
Investment into mega-projects in the
region is some eight percent increased
on 2014 levels already in 2015, and
we expect this trend to continue
until at least 2019 as infrastructure
is upgraded throughout the GCC. By
2020, in fact, we expect to see some
$40bn invested into airports alone as
GCC countries compete for a share of
total annual passenger flows totalling
four billion people through the Gulf.
Mega-project investment is good news
for Gulf economies, bringing many
benefits and creating enormous value.
We need only to look at Dubai to see the
advantages of the state investing boldly
in mega-projects and opening doors to
foreign investors. It is no coincidence
that Dubai today is regarded as a global
centre for luxury real estate investment,
on a par with New York, London and Paris.
Data issued recently by the Dubai Land
Department shows some 75 percent of
Dubai real estate investment comes from
overseas. Al-Mazaya Holdings Weekly
Real-Estate Report predicts this trend
will continue for the foreseeable future.
Mazaya Monthly Real Estate Report -
Week 2 - September 2015