By IANS
Dubai : United Arab Emirates (UAE) is the largest real estate projects market in the Gulf with 37 percent of some $2 trillion investment in the region, according to a study.
According to an estimate prepared by Meed Projects, which monitors investments in the construction and energy sector, the federation has registered the highest growth rate, with total project values rising by 46 percent over the past 12 months.
The figures contradict fears that rising construction costs would lead to significant slowdown in the number of new projects from being launched, the report observed.
The MEED Projects index monitors areas such as construction, oil and gas, petrochemicals, power and water across the Gulf region.
Only a quarter of all projects tracked by MEED Projects are from the construction sector, implying brisk construction activity will continue for another three to five years.
A number of major real estate projects has been announced in recent months, reinforcing the sector’s dominance in the projects market and pushing the overall value beyond $2 trillion.
The major new real estate projects in the Gulf region include: Sudair Industrial City in Saudi Arabia worth $40 billion, Masdar City in Abu Dhabi worth $22 billion, Dilmunia mixed use development project in Bahrain worth $4.2 billion and Limitless’ Al-Wasl development in Riyadh worth $12 billion.
Simon Howard, General Manager of MEED, said: “Despite fears that the bubble might burst at any moment, business in the Gulf is still booming.
“The last 12 months have seen huge investment poured into the region. Projects such as Masdar City and Saadiyat Island have helped Abu Dhabi emerge as a promising market, competing Dubai as the next tourism hub of the UAE,” Howard said.