A new report by real estate firm Cluttons points out the massive potential offered by Dubai and dubs it the most attractive destination for private investors in the GCC region. The destination is being fancied by not only global investors, but is also likely to attract high levels of domestic investment.
According to Ian Gladwin, CEO at Cluttons, “Dubai’s improved attractiveness, as a result of the regional geopolitical tensions, coupled with the emirate’s economic recovery has in effect created a ‘perfect storm’, which Dubai is benefiting from tremendously.”
The Middle East Private Capital Survey is based on the attitudes and behaviors of high net worth individuals (HNWI) in Abu Dhabi, Dubai, Manama, Muscat and Riyadh. While Dubai topped the table, Riyadh and Doha also showed strong performance and were identified as other hot spots for investments in different areas of economy.
Countries of Middle East have demonstrated resilient performance despite economic uncertainty surrounding the Euro-zone and weak performance of other developed economies. Since 2010, it has been the only global region to have showed positive growth in total HNWI wealth. The survey reports that 80 per cent of the respondents showed an intention to make an investment in the region during 2013.
These investments were likely to flow in residential (40 per cent), hotel and leisure (40 per cent), and retail and malls (20 per cent). The high net worth individuals also expressed a desire to invest in Saudi Arabia’s residential market (20 per cent), Doha’s office (7.5 per cent), and hotel and leisure sectors (7.5 percent). The rich individuals in Muscat were also willing to invest in Riyadh’s industrial assets.
Market reforms and new legislation in Turkey has also encouraged investors to pay attention to options in Istanbul. Turkey has recently allowed foreign property ownership. As governments push to liberalize markets and spend billions on infrastructure, the Arab world is set to remain a global hot spot for business activity.