Tanmiyat Group Executive Director co-chairs session at GRI Global Forum

Tanmiyat Group Executive Director, Prof. Rasim Kaan Aytogu, co-haired a session at the forum on "Middle East Developments: Sky High Boom or New Bubble?"

The USA Global GRI forum is organized by the Global Real Estate Institute (GRI), and is one of a series of eleven distinctive events held throughout the year in various countries, including Dubai, London and China, to address the total interests of the industry across all regions. This year's event featured over 40 discussions, addressing the most pressing issues that drive the real estate business in the US and across the globe today.

Speaking of the Middle East real estate sector and its prospects, Prof. Aytogu said, "The whole Middle East region benefits from ample liquidity, largely due to the direct and indirect impact of petrodollars, for both hydrocarbon producers and the region as a whole. GCC countries in particular are gradually increasing their integration into the world economy, thanks to the active opening of economies and the liberalisation process."

He further explained how economic diversification into non oil-related areas, such as the tourism and financial services sectors, continues to attract significant investment and demand for residential developments across the GCC. "The value of GCC real estate projects increased by 59% in 2007 from USD 90 billion during 2005/06 to USD 143 billion, and growth in the sector is projected to continue, while the mortgage market is still at infant stage that will not create sub-prime market in near future," he said.

"The UAE in particular has seen substantial growth in all sectors of the real estate industry, and construction has grown at a rate of around 32.7 percent per year since 2001. Real estate projects in the UAE alone currently total around USD 225 billion, and the industry is expected to grow at a compounded annual growth rate of around 25.4 percent over 2007-2010," continued Prof. Aytogu. "This is helped by the country's constant updating and improving of legislation and the prudent investment policy for the real estate sector."

He concluded by noting that GCC countries are focusing on various development activities to sustain the momentum in their economies, and that the governments' commitment to economic diversification, as well as increased regional spending power, increased infrastructure investment and the young mortgage market, are all key aspects that will substantiate the argument for continued growth in the real estate sector. He said "continue watching and being part of the the Boom in UAE and KSA real estate markets."

Prof. Aytogu holds a PhD in Finance, MBA from Harvard and BS in Industrial Engineering from the University of Illinois in the USA, and has served in a number of prestigious positions during the last 23 years of his career, including Chief Advisor for the Turkish Prime Minister and Istanbul Municipal Government; Chairman of the Istanbul Gold Exchange; and Privatization Programme Manager for US Army Installations. He previosly lectured as Associate Professor at University of Illinois at Urbana Champaign, USA as well as Gazi University in Ankara and Fatih University in Istanbul.

Tanmiyat Group is one of the Middle East's leading real estate developers and investment groups, with iconic projects such as the Living Legends development in Dubailand, and the Commercial Heights towers in Dubai's prestigious Business Bay area, Ajman Marina, and new project to be announced later in DIFC.