Wednesday, November 25, 2009

UAE invests Dh.100bn into realty sector in 5 years

The UAE has invested Dh.100bn into the real estate sector over the past five years, which is more than double the total capital injected into property projects during the previous five years, revealed official figures by Ministry of Economy.

The investments in the real estate sector during the period 2004-08 accounts for more than 15 percent of the total public and private investments pumped by the UAE during that period, the figures indicate.

Investments in the property sector stood at Dh.41bn during the previous five-year period and experts said that this indicates sharp increase in capital over the past five years. This was the result of construction boom triggered by strong oil prices and the opening up of property sector to foreigners.

Investments in construction sector stood at Dh.41.1bn during the period 2004-08, bringing the total capital pumped into real estate and construction in the UAE to Dh.141bn during that period.

Investments touched an all-time-high of Dh.33.2bn in the real estate sector in 2008 and about Dh.13.8bn in construction sector. In fact, these investments are considered as the main factor for the sharp growth recorded in the non-oil economy sector of the UAE during the past five years.

Official data have revealed that the real estate sector saw an increase by 35 percent per annum, touching a peak at Dh.78.4bn in 2008, compared to Dh.28.5bn recorded in 2004.

Such high growth also helped boost expansions in other non-oil sectors of UAE, boosting GDP by 25 percent. The communication sector was the biggest recipient of investments during 2004-08 with total capital of Dh.114.1bn, followed by manufacturing sector with Dh.112.5bn and real estate by Dh.99.9bn.

According to industry sources, the pace of investment will gather pace during the next few years, as the UAE pushes ahead with major projects to expand its crude output capacity, gas, refining and petrochemicals.

No comments: