The Gulf Cooperation Council (GCC) countries will become one of the leading regions to achieve economic progression in the next few years and adding $1-2 trillion of wealth by 2025.
In an exclusive interview with Gulf Today Kashif Ansari, co-founder and Group CEO of Juwai IQI stated that global investors are moving to the GCC due to high level of economic growth in the region.
Ansari shared that five sectors would contribute to the overall wealth generation in the region, these are Real Estate, service, oil and gas, tourism and technology.
Recently, Saudi Arabia travel and tourism sector increased by 32% in 2023, contributing $118 billion to the economy, In the latest report from Henley and partners for the third year running, the UAE looks set to take first place as the world’s leading wealth magnet, with a record-breaking 6,700 moneyed migrants expected to make the Emirates home by the end of the year, significantly boosted by large inflows from the UK and Europe.
He noted that price growth in Dubai real estate market continues to accelerate in Q1/2024 with average prices increasing by 20%. Dubai total transactions volumes reached 35,310 according to CBRE latest report.
Oil prices are heading north with expected range from $91 to $147 per barrel.
We at Juwai IQi forecast that GDP level of UAE will hover around 2 to 3 % while GCC region growing between 2 and 4%. With higher income levels and more wealth generation [ roughly trillion dollars], GCC region is poised to maintain strong growth and economic strength in the next 3-5 years.
Juwai IQI is buoyant and bullish on GCC region with Saudi Arabia, UAE and Qatar, the leading countries in economic progression and development. GCC remains as one of the preferred regions among global sophisticated and smart investors. GCC takes the lead in the global economy.
He added that infrastructure investment is going to be a big boost for the real estate market in Dubai. It augurs well for the market at the macro-level. Dubai just made a new announcement, devising plans for a new $34.85 billion passenger terminal at Dubai World Central Al Maktoum international [ DWC], the emirates newest airport to be completed by 2034.
Real estate in Dubai has played a pivotal role, contributing 8 to 9% to the economy at the macro level. Dubai real estate market has witnessed an unprecedented boom in the last 10-15 years. Most of the global sophisticated and smart investors are more interested in buying property in dubai rather than in London or Singapore. On the ground information is very simple that mortgage approvals increased by 40% which indicates that banks are positive about the real estate market. According to Knight Frank’s Dubai Market Review, Dubai is set to deliver just 13,000 homes annually over the next six years. However, inflation and a dynamic global interest rate policy have already hampered market growth. Geopolitical factors like the tensions in West Asia and the unabated Russia-Ukraine war cause uncertainty. Despite the possibility of the slowdown in Dubai’s real estate sector, it remains one of the most affordable luxury markets in the world, which only adds to its appeal among the international elite as per the report stated in the latest trends in Dubai real estate market.
Source: gulftoday