Middle East, Real Estate - Monday, December 1, 2008 15:19 - 0 Comments

Middle East developers widen their nets

Liquid Real Estate, Euromoney magazine, December 2008

Viewed from a distance, the Middle Eastern property industry is symbolised by Dubai. That’s the place with the fastest pace of development, the tallest buildings, the wackiest plans for world-shaped islands and underwater hotels. It may be as brash and bold as Las Vegas, but it’s not the whole story. Outside Dubai, and even beyond the booming cities of Abu Dhabi, Doha, Kuwait City and Manama, there are other interesting real estate stories. With concern growing about overheating in Dubai property, they’re starting to look like more attractive propositions.

At the heart of this momentum is money from the Gulf itself. For some time, Gulf developers have been looking for new opportunities. Jordan, Oman and Egypt have captured particular attention, with some looking as far afield as Lebanon, Morocco, Tunisia and Syria. All the big names in Gulf property development – Dubai’s Emaar and Damac, Qatari Diar, Bahrain’s Gulf Finance House as well as the big Saudi and Kuwaiti conglomerates – are aware of the risks of concentration in one market and, more importantly, see great long-term gains to be had in less well-trodden locations. The only question now is: in the new, more frugal environment that must follow the credit crunch, can they all be funded? Continue…

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