The recent Arab Spring shook the Middle East. However, the UAE remains stable and safe, with commercial activities at a normal level. There has been no such uprising in the region and the country has become a default refuge from the riots. These aspects lead to a slightly different trend than usual: more traffic from Arab countries to the United Arab Emirates and more business. The growing crisis of the sovereign debt of Europe and the unstable economy. They could well be the cause of this "regionalization": the Arabs investment property their oil dollars in other Arab countries, with the United Arab Emirates being the center of that activity.
Dubai has seen nothing of the violence that has destabilized the region. Its hotel, retail and residential sectors are enjoying an impulse of the general stability of the country. According to Reuters, anecdotal evidence suggests that Arabs, middle-class and above, are buying Dubai properties to cover their risks in other countries.
Similarly, in India, a weaker currency is encouraging Indian expatriates in the Gulf to invest in domestic markets. According to Economic Times, non-resident Indians, especially those living in the Gulf, have invested around Rs. 75 crores in August and September of this year in the region, the highest payment in more than 2 and a half years.
Recently, Russell buy Investments property classified the United Arab Emirates as an emerging market as opposed to the border market designation granted by MSCI (Morgan Stanley Capital International) and Standard and Poors. The UAE is the first country of the Gulf Cooperation Council (GCC) to graduate from the border to the emerging market state within the Russell Global Index series. The market in the UAE seems to be a welcoming investment. In addition, the articles say that those willing to invest in the UAE, have a longer-term investment focus and are not affected by short-term market fluctuations. This clearly demonstrates the relatively greater comparative value of investing in the UAE in other parts of the world.
According to the UAE Investor Attitude Index published in the UAE - The National newspaper, about 60 percent of investors surveyed said it was a good time to put money in gold, and half said fixed rate bank deposits. They were smart investments. The survey was based on interviews with more than 750 people in the United Arab Emirates, who are market investors, most of whom were expatriates. The roar and rumble of Dubai have always been related to the real estate market. There is still an excess supply in the market and investors do not seem to want to invest much in real estate. Although there are still a number of challenges to overcome, it seems that stability is going up.
Supporting that, Kabir Mulchandani, a UAE real estate veteran says that pessimism is in people's minds. "I transfer properties every day, my optimism comes from real demand and from real buyers with real money, I see steady growth in prices until 2014, but then I see a significant jump between 2014 and 2016. Probably in 2017 and 2018, when the suppliers are against us to return, hopefully, we will have some stabilization. "
Once the pending infrastructure projects are about to be completed, it is likely that more investors will investigate in the real estate market, which is certainly experiencing a rebound. According to a recent industry survey conducted by PricewaterhouseCoopers (PwC) and INSEAD Abu Dhabi, the private equity industry in the Middle East and North Africa (MENA) has emerged stronger from the global financial crisis and recent political turmoil in the region. In addition, the survey showed that the sector of small and medium enterprises (SMEs) has become a new investment objective for regional private equity players.
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