GCC constructs $1.65 trillion economy on realty

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Implying at constructive progress rates for the real estate industries in the GCC, the report revealed. Declaring a booming GCC economy at $1.65 trillion in 2014 compared to $535.7 billion ten years ago.

GCC constructs $1.65 trillion economy on realty

GCC constructs $1.65 trillion economy on realty

Details were in comparison with international realty industry investments, which fell back in 2014 beuse of the policy variations in China and other Asia-Pacific nations.

International realty investment dropped in 2014 for the first time in five years, plummeting 6.3% to $1.21 trillion from $1.29 trillion in 2013. Whereas the latest fall in oil rates have restrained GDP development with reservations, the GCC economy is approximated to recuperate on the back of helpful economic strategies and robust performance in the non-oil division.

Information revealed that the GCC’s economy is approximated to arrive at $2 trillion by 2020, with Saudi Arabia giving $902 billion, then UAE – $502 billion, Qatar – $269 billion, Kuwait – $196 billion, Oman – $81 billion and Bahrain – $40 billion.

A top official also observed that the GCC region as a complete is still sturdily dependent t on oil profits, whereas the non-oil division consisting of real estate, tourism, manufacturing, trade and hospitality has transpired as the main development engine, particularly in the UAE. Thus, regardless of the sheer drop in oil rates, GDP growth in GCC was not harshly affected due to because of the robust performance of the non-oil division and large cash barriers, which guaranteed stable levels of spending and investment.

Over the last five years, the GCC economy has increased at an average yearly rate of 5% against the world average development rate of 2.8%. The amplified contribution of the non-oil division to the economy has been the main basis for the reasonably better performance by GCC nations, exceeding the progress rates of matured and grown nation in the last five years.

After the global financial crisis, the GCC has emerged as an attractive destination for global investors and the real estate and construction sectors have become key economic barometers for the growth in the region. On the other hand, private equity investment in GCC realty is still recuperating.

The residential, office lease and hospitality industries stays optimistic in the GCC, while the retail segment is projected to maintain its insistent development in the coming years. With the main in progress commercial projects, GCC realty industries are fascinating substantial interests from private entity to point out possibilities for additional development.

Mohamed Dekkak

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