KSA investors sink US $8bn into UAE and keep spending

The UAE real estate sector attracted US $8 billion (SAR30 billion) of investment in 2007 from Saudi Arabia-based businesses, according to Dubai-based property developer, Durar Properties.

CONFIDENCE: Durar 1
CONFIDENCE: Durar 1

The UAE real estate sector attracted US $8 billion (SAR30 billion) of investment in 2007 from Saudi Arabia-based businesses, according to Dubai-based property developer, Durar Properties.

The company released the figures at last week's launch of Durar 1, a new development which already has the backing of three KSA-based property investment groups.

"The involvement from KSA highlights the interest from the global community in the local real estate industry," said the company's general manager, Mohammed Miqdadi.

"The UAE property market is attracting the interest of high profile international businesses, most notably the US-based Trump Organization.

Hamid Shah, director of Mirage Real Estate, a UK-based overseas property investment company specialising in the UAE market, said there were three reasons for the current confidence from overseas investors.

"First, the Middle Eastern economy is very strong, driven by the high cost of oil. Investment of revenues has lead to the creation of many jobs. At present the UAE is years ahead of the rest of the region in this respect.

"Second, demand for property is far outstripping current supply, and third, there is a strong tourist economy in place which, combined with cheap air travel, means a huge demand for commercial and residential space."

The Saudi-based groups are Zuhair Al Habib, Salah Al Habib Investments and Al Mutawa Investments.

"Increased investment has been driven by legislation to protect investors, which is being refined to benefit more buyers," said Zuhair Abdul Aziz Al Habib, director and chairman of Zuhair Al Habib.

Durar 1 is a twin-building residential development which will be located in the Residence complex in Dubailand. It is a joint venture between Durar Properties and contractors Ali and Sons.

Construction started in May 2008.

Dubailand is a giant 278km2 multi-use development, and the second largest single development in the GCC behind King Abdullah Economic City in KSA.

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