Tamweel CEO predicts Abu Dhabi residential retail market will touch AED 9 billion in 2007

Speaking today at the Abu Dhabi Economic Forum, Adel Al Shirawi said that the mortgage market in Abu Dhabi will represent about one-third of the total retail residential real estate market, valued at AED 3 billion, by the end of this year.

"Abu Dhabi's real estate sector is set to witness strong growth driven by the pragmatic economic policies of the government and the increasing focus by real estate developers on the development of affordable housing for the middle-income segment," said Al Shirawi. "As the population continues to grow, the demand from the middle-income segment is expected to continue to increase. Developers in Abu Dhabi have already begun to address this niche."

Al Shirawi firmly believes that the leasehold property law currently in place in Abu Dhabi will spur growth in the real estate sector. "Industry experts often call for a freehold property law in Abu Dhabi in line with the one currently in existence in other emirates to further the growth of real sector. We believe that 99-year leasehold property provides adequate legal backing for this asset class. This is corroborated by international securitisation institutions that have readily securitised leasehold properties."

Al Shirawi added that premium resale value for leasehold property in Dubai, for instance, is currently in excess of 90 per cent, indicating buyer's confidence in the government and its leasehold law. He pointed out that developers need to improve the quality of their developments to meet global standards and ensure that all delivery schedules are met in order to maintain and drive growth in the UAE real estate sector.

The Tamweel Chief Executive Officer spoke as part of a panel discussion titled, "Real Estate Development," which focused on the emergence of large real estate development companies and huge real estate projects that are reshaping the urban landscape. The discussion, which was held from 12:15PM - 1:00PM at the Emirates Palace Hotel in Abu Dhabi discussed the drivers in the Abu Dhabi real estate market, leading development projects and the implications of market absorption of new supply.

Other speakers on the panel discussion included Faris Suhail Al Yahbouni, Managing Director of Sorouh, Ahmed Al Yafie, Chief Operating Officer of Al Qudra Real Estate and Eng. Akram Abou Hamdan, General Manager of Al Mawared of Jordan.

Organised by Iktissad Wal Amal conferences and the Abu Dhabi Chamber of Commerce and Industry, the Abu Dhabi Economic Forum offered participants an opportunity to gauge the economic vision of Abu Dhabi and evaluate developments and challenges in its rapidly growing economy.