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GCC investors: UAE property sector saviors?
Given the increased investment from GCC citizens, Kipp can’t help but wonder whether the UAE’s troubled property markets stand to gain significantly from its neighbours?
August 28, 2011 4:05 by p.deleon
Could the answer to Dubai and the UAE’s troubled real estate market lie in a switch in target markets? The release of the annual statistical report from the Ministry of Finance has led Kipp to believe it might very well be the case.
According to the report, there has been a significant increase in the number of properties registered and held by GCC nationals within the UAE. The gross cumulative rates of GCC citizens owning property in the UAE rose to 34,029 contracts in 2010 compared to 29,425 in 2009.
And the increase in property is not without an increase in business-related activities. According to the ministry’s report, there has been a cumulative increase in the rates of licenses granted to GCC citizens to practice economic activities within the UAE, where 26,223 licenses were issued in 2010 compared to 24,109 in 2009.
Now, Kipp’s written on this subject far too often, and so because we feel like a broken a tape recorder we will keep it brief. Investing in property in the UAE is risky business, especially for expats. Because investor-visa is an ever changing subject, handling and managing a property from abroad could be a tricky affair. If you are from the GCC, however, visas and travel isn’t even an issue.
And given the fact that the rate of GCC citizens working within the UAE, amounted to 4,190 employees in 2010 in comparison to 3,589 in 2009, is on the increase, it is undisputable that the region is an attractive working environment for GCC nationals.
Of course, that reported 4,190 GCC national employees last year just isn’t enough to cover for the number of houses that are ready and will be ready for occupancy in the coming months.
Given the small ratio of GCC nationals in the UAE populace, is this increase in investment a true sign that things are looking up? Or just a over-amplified drop in a bucket of…uhm, let’s say water.