The demand for real estate in Dubai continues to outstrip supply and is likely to continue to do so for several years, according to news from the World Economic Forum’s Global Agenda Summit in Dubai. Mr. Mohamed Alabbar, Chairman of Emaar Properties and Co-Chairman of the World Economic Forum’s Global Agenda Summit addressed the final plenary session of the Summit.
Mr. Alabbar noted that the government of Dubai is monitoring the property market very closely and is developing ways to keep market confidence up. In response to the global financial crisis, the UAE Government is injecting Dhs 120 billion into the financial system to keep it strong. Additionally, the government plans to guarantee customer bank deposits.
With so much of the market in Dubai driven by cash, a lot of the potential risk has been taken out, unlike in many other countries, according to Mr. Alabbar. “A majority of the investments in real estate is equity or cash-driven, unlike other markets, which are predominantly mortgage-driven. This takes out a lot of risk from the system,” he said in comments to the Summit.
Dubai has been chosen as the venue for the Annual Global Agenda Summit for the next few years. Recommendations from the Summit will be presented at the World Economic Forum in Davos.
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