Construction & Real Estate

Lebanon: Real progress

Lebanon's real estate sector appears to be bucking the regional trend of boom and bust, with only modest declines in sales and value levels. Though there has been a recent slowing in the sector, with sales dipping 10.6per cent year-on-year in June, pulling down the property sales transactions in the first half to 3.3per cent lower than for the same six months in 2008, overall the market has shown remarkable strength over an extended period of time. The average annual rate of growth for real estate sale values over the past five years has been 17.6per cent, while the number of construction permits issued over the same period has risen by an average of 12.6per cent each year.

US$1.9bn Doha project ready for buyers in 2011

The QR7.1 billion (US$1.9 billion) Barwa Commercial Avenue project is likely to be handed over to buyers by 2011, officials have revealed. Yousuf bin Rashed al Khater, the newly appointed CEO of Barwa Real Estate Company, said the firm's second major project 'Barwa City' was also due to open in November 2010. "There will not be any slowness in the progress of any of our projects," al Khater said. "The board of directors will not spare any efforts to remove any obstacle that might emerge during the implementation process. "Construction of Barwa Commercial Avenue on an 8km stretch outside Doha is 50 per cent complete. Once finished, the development will consist of 600 retail spaces and 850 residential units and offices.

Qatari Diar launches US$150m Tajik project

State-owned investment firm Qatari Diar has launched a luxury real estate project in Tajikistan worth at least US$150 million, news reports have indicated. The Dushanbe Diar project in the Tajik capital Dushanbe will include residential towers, a five-star hotel, shopping malls, conference centers and gardens when finished in 2012 at a cost of between US$150 million and US$180 million, the report said. The project is Qatari Diar's first in Central Asia. The unit of the Gulf Arab country's sovereign wealth fund the Qatar Investment Authority has said it might delay plans to invest in Asian countries such as China, Vietnam and Cambodia because of the global financial crisis.

Qatar: Concrete evidence

The construction sector, having avoided the full impact of the global financial crisis, is continuing to build from a position of strength. One of the key indicators that the Qatari construction sector is still vibrant, in contrast with others in the region, is the high demand for cement, with consumption at or around the same levels as it was last year. Even though the emirate's main cement producer, the Qatar National Cement Company, has ramped up production from 3 million tons a year in 2008 to the present level of 4.65 million tons, it still cannot meet all of domestic requirements, estimated to be between 18,000 and 19,000 tons a day.

Massive project spending planned in Gulf region

Infrastructure spending by Gulf countries is expected to reach US$205 billion (AED752 billion) by 2013, according to the latest estimates by Standard Chartered Bank. Although funding has become a big challenge in the context of the global credit crisis, economists expect Gulf governments to support most infrastructure projects and bond issues will because a major source of funding. Saudi Arabia alone accounts for more than 50 per cent of regional infrastructure spending with US$105 billion in investments planned in projects such as hospitals, roads, railways and airports.

Abu Dhabi prices seen helping Dubai rental market

The rise of house prices and rents in Abu Dhabi has created "breathing space" for Dubai's struggling real estate industry, a developer said. Mohammed Nimer, CEO of MAG Group Property Development, said the UAE capital's shortage of supply and high prices has resulted in more people choosing to live in New Dubai, to Dubai's commercial benefit. "It's a mirror image of what happened last year - initially Dubai's rising rental prices forced expat residents out to Sharjah, Ajman and Ras Al Khaimah, but now the sharp fall in prices is luring them back," said Nimer. "These two distinct dynamics that have played out in separate emirates, during different periods, have both ironically resulted in breathing life into Dubai's residential market at a time when other areas of the UAE real estate market have been left gasping," he added.

Saudi realty investments near US$300bn

A report by Global Investment House expects the real estate sector in Saudi Arabia to sustain growth rates between 5 and 7 per cent up to 2012, propelled by solid local demand for residential projects, increase in commercial developments and growth in the hospitality sector. Global said that realty contributed around 7.2 per cent to the Kingdom’s gross domestic product during this year, compared to 6.8 per cent in 2004, with realty investments marking SAR1.125 trillion (US$300 billion) and set to edge up to SAR1.5 trillion in 2010. Saudi Arabia’s untapped growth potential has plotted the Kingdom as a Mecca for international investors, suppliers and contractors, continues Global.

Al Tamdeen bids for mega realty project in Qatar

Al Tamdeen Investment Co. is currently in talks to develop a real estate project in Qatar over a surface area spanning between 400 and 500 thousand square meters, comprised of a monumental tower and a vast residential and commercial compound. Reliable sources said that the project centers on a 50-year investor concession license costing up to KD150 million. Al Tamdeen is set to hold a 35-per cent stake in the project. Compatriots Al Imatiaz Investment Co. will own another 15 per cent, alongside a substantial slice of the venture going to realty goliath Barwa of Qatar. The project’s development works are estimated to require three years to complete, said the sources.

Arabtec to set up new concrete firm

Arabtec has been given the go-ahead to establish a new concrete firm, the Austrian Arabian Ready Mix Concrete LLC (AAC), in Saudi Arabia in line with big plans to expand in the kingdom. The company's stock rose 5.76 per cent, closing at AED3.12 following the announcement posted on the website of Dubai's Financial Market (DFM). The AAC is already in operation in Dubai but will now be going to Saudi Arabia due to the increasing number of projects underway there. Arabtec's board of directors also gave approval to the "transfer of some of the assets" of AAC to Saudi Arabia in order to start the new operations, according to a statement on the DFM. These assets include equipment such as machinery and concrete, said a source close to Arabtec.