Tamweel CEO discusses UAE's property and mortgage market at MEED conference

The conference, which was held on February1st and 2nd, 2005 focused on the dynamics of the Real Estate sector in addition to core areas such as mortgage issues and options.

Mr. Al Shirawi who addressed conference participants in his capacity as one of the key speakers outlined market supply, demand factors for the real estate market and the performance of the regional market vis-à-vis the global situation. While elucidating the context in which the region's market was expanding, he outlined the factors that investors must consider when they decide on investment options.
With the current market research indicating the size of the GCC market to be around $ 90 billion, he pointed out that the UAE and Saudi Arabia accounted for a major share nearing 80% of the total GCC market.

Some of the factors that were attributed to the region becoming a destination of choice for investments were the increasing repatriation of Arab funds from Western markets, augmented deployment of savings by residents and investments from non-residents from the neighboring regions.

Speaking about the growth levels in the huge GCC market, Adel Al Shirawi said, "The region has witnessed phenomenal growth in this sector which in fact saw an annual growth of 8% in supply, while in Dubai specifically, we have seen double-digit growth in supply."

Mr. Al Shirawi also mentioned the need for an inflow of fresh funds into the market by attracting foreign direct investment to the GCC. He highlighted the need to introduce the concept of securitization and regulations that increase its flexibility and market awareness for individuals on alternative debt options such as securitization, sukuks, funds, and so on.

Elaborating on the criteria that potential investors must consider before exercising their investment options, Mr. Al Shirawi said, "Investors should consider a number of important factors before making their decisions such as weighing different financing options using the availability of market information, flexibility and terms of financing; their ability to avail financing for the property, the return on their investment and the state of the secondary market."