MAG Group CEO adds to calls for transparency
Nimer urges investor reassurance and for UAE to go 'back to basics'
A triumvirate of transparency, liquidity and regulations must be enhanced to revive Dubai’s flagging real estate market, according to the CEO of MAG Group Property Development.
Speaking yesterday at the Infrastructure and Property Development MEA Summit at the Park Hyatt Dubai hotel, Mohammed Nimer said these three elements were “needed more than ever to reassure and protect legitimate investors seeking a reasonable reward for a reasonable risk”.
Trust between buyer and seller is vital, he stated on day one of the three-day summit, as well as affordability and a clear value for money.
The comments on transparency can be seen as particularly well timed as pressures and suspicions mount over the treatment of investors into major redevelopment projects. Marina West in Bahrain and the Dubai Lagoon in the Dubai Investment Park, are two such projects currently under scrutiny by investors seeking greater clarity on work progress and value for money, according to insiders
It also follows comments by the directors of CityBuild Abu Dhabi and Cityscape Abu Dhabi – two major trade shows in the region that were held last week.
Graham Wood, group director of CityBuild, said: “The federal government is tackling regulation which will lead to greater transparency which in turn should help investor confidence.
“When investors gain confidence it will have a positive effect on the market and therefore reduce risk.”
Nimer also called for changes in visa rules to boost the potential pool of outside investors and property buyers – including calls for more expats and for the UAE to return to core activities.
“The relaxation of visa rules is a federal issue but it needs to be consistent and investor friendly. Malaysia and Thailand lead emerging markets in encouraging international property buyers and as such this country could learn from them,” said Nimer.
“The UAE also needs to attract more expatriate workers and foreign companies as the future depends on population growth and increasing business relationships with rest of world.”
He added: “The UAE needs to go back to basics. Solid market fundamentals as opposed to sentiment are always at the heart of a sustainable recovery and 2010 is a crucial year for determining the direction of the UAE’s real estate industry as the world pursues post-crisis recovery.”