Developments Breaking Ground

Overcoming the challenges, development projects remains steadfastly lucrative in GCC.


An explosion of property developments is what we all are witnessing in GCC. Developers and Governments in the region come with numerous of projects worth billions of dollars and each project outshines the other with its unique features and facilities. Here is a quick look at the some of the major projects underway in the countries of the region:

Super Towers to Adorn Dubai Skyline

Six super towers, soaring above 100 floors, are all set to adorn Dubai skyline by next five years as they are in various stages of planning and construction. These towers include Burj Dubai, Burj Al Alam, Marina 101, Princess Tower, Pentominium, and Al Burj.
Burj Dubai - tipped to become the world’s tallest tower - is powering ahead adding floor by floor. It has already reached 160 floors surpassing the height of KVLY-TV mast in North Dakota, USA to become the world’s tallest man-made structure. Burj Al Alam slated to rise to 108 floors while Marina 101 is a 101 storey, Princess Tower is with 107 floors and Pentominium will soar to 120 floors. Al Burj, "one of the tallest towers”, is expected to be between 180 and 200 floors. The work of Al Burj is likely to begin only on completion of the Burj Dubai.
Apart from these, hundreds of towers and skyscrapers are under construction on both sides of Shaikh Zayed Road, in freezones and other parts of the emirate. More than 1,850 towers will be constructed at the Dubai World Central Airport City in Jebel Ali alone.

Surprises to Come from Abu Dhabi

Abu Dhabi will go miles in property development over next few years. Realty projects announced so far in the emirate, including those under planning and development, are estimated to cross $ 466 billion (AED 1.71 trillion). However, according to the latest updates, these represent only the ‘tip of the iceberg’; the biggest surprises in terms of mega property development projects such as new capital district that will become the administrative headquarters of the government, is yet to be unveiled.
Developments officially declared or broken ground include Yas Island and Khalifa City with an estimated cost of $ 40 billion each, a $ 24 billion mixed use real estate community project by Burooj properties and a $ 10 billion Ghantoot City. The emirate will host more mega projects than ever before as the Wetlands National Park that is to triple the size of the existing Abu Dhabi island. Hudariyat Island is another major development in pipeline in capital city of the UAE. All of the development projects will boost the stature of Abu Dhabi among other emirates and the entire Gulf countries.

Powering Northern Emirates
Northern Emirates are also not behind in the race as hundreds of projects moving from paper to site in Ajman, Sharjah, Ras Al Khaimah, Umm Ul Quwain and Fujairah. In fact, as the UAE property market continues to grow and all the emirates are competing to tap the opportunities, the focus is now on Northern Emirates. Northern Emirates are becoming as an alternative to Dubai, which is getting expensive and less accessible to middle income group. Skyrocketing prices in Dubai has made Ajman more preferred among other emirates as it is located only 25 minutes drive away from the Dubai international airport.
Emirates City, Al Azoura, Green City, Al Ameera Village, Ajman Corniche Residence, Ajman One, Ajman Marina and Marmooka City are some of the projects Ajman embarked on so far. Projects under construction in Sharjah include Nujoom Islands, Emirates Industrial City and Sharjah Marina. Sharjah Government’s development plan of a $ 177 million Sports City is one among the projects planned. Emirates Modern, Umm Al Quwain Marina costing a $ 3.3 billion are the projects under construction in Umm Al Quwain where as Ras Al Khaimah has Al Hamrah Village, Saraya Island, Mina Al Arab, Al Marjan Island, Yasmin Village, Mangrove Island, Dana Island, and Gateway City to its credit. All of these are in various stages of construction.

Buoyant GCC Market
The construction industry in the GCC is now worth $1.9 trillion and Saudi Arabia accounts 25 percent of all construction projects in the GCC. Global Investment House launched a $500 million Global GCC Real Estate Fund-II to take advantage of the booming GCC market. Real estate ownership rules and regulations in the GCC region are being revised to accommodate cross-border investments amongst member countries and the increased transparency in the real estate sector has resulted in capital inflows from outside the region too. Steady growth of the economies of the Gulf countries has made a strong positive impact on demand for all types of real estate opportunities and investments in the region.
The property sector in Saudi Arabia is about to boom, brought on by the combination of an impending mortgage law to make it easier to buy and the wide-spread realisation that there is a chronic need for more housing in the country. This is apart from the six economic cities - four of which have been so far announced - which will include plenty of housing for workers, a number of mixed use communities are also being built.
In Qatar, new legislation grants foreigners the right to 100 percent land ownership and to build residential units in 18 locations, including the ‘Pearl Island’, ‘West Bay Lagoon’, ‘Al Khor Resort’ and the ‘Lagoon Plaza’ projects. With 500,000 families expected to make a move to Qatar by 2012, real estate is turning out to be an extremely attractive investment. Property developers in Qatar are offering its investors a 40 to 45 percent ROI.
Property sector of Oman witnessed tremendous development in the last few years and the international business houses are foraying into the country. New local businesses being set up, improved connectivity, better infrastructure and human resources have all contributed to this growth. The demand for residential property has skyrocketed as more and more expatriates are opting for jobs in the country.
US $ 8 billion worth of private investments will enter Kuwait’s real estate by the end of 2013. Reports have revealed that the skyrocketing demand for residential built space is one of the primary drivers of the country’s real estate market surge. Demand swells in the country for private housing units and it is projected to cross 100,000 by 2010.
Low interest rates, high liquidity and liberal laws create burgeoning real estate market in Bahrain. Hot on the heels of Dubai, Bahrain has succeeded in developing its own brand of real estate market magic. Being built upon its current economic progress and reputation as a financial and commercial hub, Bahrain's numerous completed and underway projects, like the Bahrain Investment Wharf, Bahrain Financial Harbour, Bahrain Bay, Bahrain City Centre, Durrat AI Bahrain, and Amwaj Islands have contributed greatly to a remarkable growth in its overall real estate sector.
Even though the lack of skilled labor, rampant inflation and soaring prices of building materials have pushed building costs in the GCC by 50 percent in the first half of 2008, the real estate sector do remains steadfastly lucrative.