International Real Estate Investment and Development Conference open at Cityscape Dubai

With an exclusive focus on the MENA region, Swicorp has been able to build a credible real estate track record, that boasts significant advisory roles to prominent projects such as King Abdullah Economic City, Knowledge Economic City in Madinah, Jabal Omar, Tareeq Al Mowazee in Saudi Arabia, some of the Dubai Land initiatives and several Real Estate projects in other countries such as Tunisia and Jordan.

During his opening remarks, Mr. Lazaar addressed the current turbulence experienced throughout global markets, whereby he said:

"With the Credit Crisis caused by the mishandling of the Real Estate economic factors especially in the USA, and with the severe down turn in Stock Markets across the globe, we are witnessing what many perceive to be a serious threat to our economies in general and to the Real Estate sector development in particular."

He continued, "The tremors of the crunch of the credit crisis of the financial markets in mature economies, which caused the severe correction in the stock market indices, are causing even a greater damage and correction in the emerging stock markets in general and in our GCC and MENA markets in particular. Actually any correction that takes place in our market is usually amplified. You can see that clearly in the world's stock Markets."

However, the Middle East real estate market looks more resilient and appears better placed to withstand some of the impact suffered in the United States and Europe during the recent downturn in the global property market.

Despite the extraordinary crisis, a variety of sweet spots exists across the region, which, if properly approached with a more regional openness approach, will guarantee great opportunities.

Mr. Lazaar highlighted, "We believe that the MENA in general and the GCC Markets will continue to have some 'sweet spots'. These sweet spots can be discovered in the affordable housing across MENA. From Morocco & Algeria to Egypt, Saudi Arabia and Iraq, affordable housing is the name of the game."

Mr. Lazaar also spoke of the need to adopt the right attitude towards market trends, to be able to sustain a healthy and thriving economy. He said, "It is becoming so important for all of us to maintain a longer term perspective on this vibrant and crucial industry, which has been stimulating and sustaining the economic growth of all our countries in the region."

Discussing factors that contribute to the ongoing growth of the region's real estate sector, Mr. Lazaar said, "The development of the sector was also accelerated by low interest rates and the huge increases in Oil & Gas revenues. Because of this unconditional and consistent support, the expected correction in these markets is unlikely to be as severe and will not happen so quickly and dramatically."

The ongoing surge in oil prices and the resulting increase in liquidity, has fueled mega real estate projects all around the GCC. Two particular markets that boast tremendous growth potentials are that of Saudi Arabia and Oman, attributed mostly to the young demographics and continued increase in demand for housing.

The first day of the conference also witnessed the 'Hot Debate', which was mediated by renowned current affairs and political commentator and writer Mr. Jonathan Dimbleby. The session tackled the hottest and most controversial aspects of the international real estate scene.

Mr. Lazaar concluded by urging regional communities to re-establish their goals, he said, "While we have reasons to remain optimistic, I strongly believe, that today, is the time to consolidate our gain and reassess our development strategies in general and those related to the real estate sector in particular."