With the lowering oil price having a knock-on effect on the local property scene, the (Persian) Gulf Cooperation Council investors are looking towards more mature markets that can withstand the fluctuating price of oil, while also offering institutional grade products.
The emerging preference for property investment is in the US; a fact boosted by an enduringly strong dollar, and longstanding economic prowess, said Dominic Docherty, the chairman of Capital Assured, a real estate investment, management and development firm, TradeArabia reported.
The Center for Economics and Business Research’s World Economic League Table 2015 yet again saw the US at the top of the benchmark list of the world’s strongest economies, Docherty pointed out.
Expected to retain this spot for at least the next decade, it remains a savvy choice for (P)GCC investors wishing to diversify into more stable and secure locales.
“The US market continues to offer highly developed, secure investment opportunities, bound by strong corporate governance and protected by efficient local financial markets,” added Docherty.
“By concentrating on the upward trend of (P)GCC investors investing in the US property market, we at Capital Assured are confident we will beat the local market trends for an investment slowdown–whilst simultaneously sending a strong message of confidence to our investors.”
Qatar Building Boom
Construction of the Sharq Crossing, Qatar’s $12 billion bridge and underwater tunnel link across Doha bay, was due to start this year to be ready for the 2022 World Cup, but that deadline has slipped as the government shifts priorities, Reuters said.
The Persian Gulf state’s plans to splurge $200 billion on infrastructure as part of its 2030 development plan has lured foreign contractors to what promised to be big profits, but project delays and problems with contracts and bureaucracy have left many in difficulties and their returns uncertain.
The government, too, appears to be reassessing its plans, although officials allude to a temporary but indefinite halt to projects rather than cancellations.
Other schemes that have been put on hold include a multi-billion dollar chemicals plant north of the capital Doha and Doha Grand Park, modeled on New York’s Central Park.
“Qatar has mothballed a lot of vanity projects,” said a source at a construction company operating in Qatar who spoke on condition of anonymity. “It’s indicative of how the country’s grand aspirations have been toned down a little bit.”
The (P)GCC comprises Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and UAE.
