Investments in Abu Dhabi's real estate sector to top AED 100 billion in 10 years

With current residential occupancy levels reaching 90 percent and hotel occupancy at 80 percent, the residential and tourism sectors will witness the major share of this investment according to an industry expert.

Addressing the ARABIAN PROPERTIES FORUM, being held at the Abu Dhabi International Exhibition & Conference Centre, Ahmed Al Husseini, CEO, Al Rayan Investment said, "Abu Dhabi will continue to leverage on its status as a 'unique' location thanks to its political stability, security, tax-free status and stability of the currency, and emerge as a leading destination for real estate investments over the next decade."

"There is a clear convergence between the government's vision and that of the private sector. Introduction of advanced financial instruments and retail products aimed at facilitating property investments are boosting the growth of the real estate sector," he added.

"The population of Abu Dhabi grew by 49 per cent from 1998 to 2004 to reach 1.3 million. By 2010 it is forecasted to reach 1.9 million."

The ARABIAN PROPERTIES FORUM is presented by Datamatix and ADNEC (Abu Dhabi National Exhibitions Company) and is being held in parallel with the CONSTRUCT Abu Dhabi and ARABIAN PROPERTIES 2006 exhibition.

The CONSTRUCT Abu Dhabi and ARABIAN PROPERTIES 2006 exhibition was inaugurated by HE Sheikh Hamdan Bin Mubarak Al Nahyan, UAE Minister for Public Works. The exhibition features participation from 350 companies representing 130 exhibitors from 18 countries occupying an exhibit area of 14,500 square metres.

According to organisers of the event, value of all construction projects announced to date in the UAE is AED 624 billion. In 2005, the UAE dominated the Gulf construction sector with AED 130.6 billion worth of projects under construction accounting for 63.7 per cent of the total value of projects under construction in the GCC states. Saudi Arabia occupies the second slot with AED 28.9 billion, with Qatar (AED 16.88 billion) in third place followed by Kuwait (AED 12. 8 billion), Bahrain (AED 7.34 billion) and Oman (AED 5.1 billion).

Residential and tourism property projects unveiled in Abu Dhabi over the last 18 months have exceeded expectations. Nearly 200 billion AED worth of projects including the Al Raha Beach Development (AED 53.94 billion), Al Reem Island Development led by the Shams Abu Dhabi project by Sorouh Real Estate, the Lulu Island Island Project, the Abu Dhabi Airport Expansion (AED 24.9 billion), Mohammed Bin Zayed City (14 billion AED), Najmat Abu Dhabi (AED 30 billion) development by Reem Investments, Between The Bridges Project (AED 800 million) and The Gate Project by Abu Dhabi National Hotels among others, have been unveiled. In addition, several other projects are expected to be announced soon.

CONSTRUCT Abu Dhabi 2006 and ARABIAN PROPERTIES 2006 are supported by the Ministry of Public Works, Department of Municipalities & Agriculture and the UAE Contractor's Association. Sorouh Real Estate, Aldar Properties, Emirates Iron & Steel Factory and the National Bank of Abu Dhabi are the main sponsors of the events.