Alabbar: Sustained demand will drive Dubai real estate sector growth

Mr Alabbar was addressing the closing plenary of the Summit, co-hosted by the Government of Dubai to deliberate on nearly 70 issues of global significance.

He said that the Dubai Government is keenly monitoring the property market and a high-level committee has been exploring several initiatives to boost market confidence.

"His Highness Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President & Prime Minister and Ruler of Dubai inspires us to see opportunities in the face of crisis. The UAE has been one of the most alert economies in the region, and one of the first movers to address the crisis. We did not adopt a wait-and-watch attitude. We faced the challenge with an alert mind and open heart."

Mr Alabbar said that the Government is committed to creating stronger transparency and confidence building measures.

"This will also prompt us to revisit our development pipeline to ensure that demand remains robust,"

he added.

In response to the global financial sector turmoil, the UAE Government is injecting Dhs120bn into the country's financial system to bolster liquidity and strengthen the financial system, Mr Alabbar said, adding that the Government has also announced guarantees on customer bank deposits.

Mr Alabbar said that the real estate sector's growth was Dubai's answer to the demand created by traditional sectors such as re-exports and trading; tourism and retail; transportation and logistics; manufacturing and the free zones. "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."

Allaying speculations on the debt situation of Dubai, Mr Alabbar said that Dubai's asset base outstrips the debt several fold and that it is further addressing the debt position by also focusing on a central debt management system both for the Government and state-owned entities.

"The Dubai Government borrowings were for Government institutions or State-owned entities that have been generating positive cash flows and long-term value, as opposed to supporting consumption."

He said that the Government of Dubai is fully covered to service its debt for the next seven quarters. "Our debt services our long-term, risk-free infrastructure development programmes. We believe that a solid infrastructure is the runway for strong, future growth."

Mr Alabbar said that the Global Agenda Summit will pave the way to create a new socio-economic agenda for the world.

"The participants in this Summit come from over 68 countries and all continents - a testament to Dubai's position as a global city and a meeting point for a variety of opinions. The participants proposed insightful, actionable ideas. Ideas that can change the way governments function, businesses operate and families live."

The Summit, co-chaired by Professor Klaus Schwab, Founder and Executive Chairman of World Economic Forum, evaluated nearly 70 issues that the world faces today - from the financial sector turmoil to climate change, poverty eradication and sustainable development.

"From the farmer in Vietnam, to the school boy in Kenya to the bright university student in Cairo - every cross-section of the society, all over the globe, stand to gain from the global agenda this Summit will set," said Mr Alabbar.

The recommendations of the Summit will be presented at the World Economic Forum in Davos next year.

Dubai has been chosen to be the venue for the Annual Global Agenda Summit for the next several years.