Looks like Dubai's Market is back on track!!!

[Sally1980]

Today the The Dubai Financial Market went up 8.3 per cent as trading opened after government took decisive action to restore investor confidence in the markets and the financial system. (source: Gulfnews: Dubai leads Gulf stocks surge as markets open on a positive note)

Sheikh Mohammad Bin Rashid ordered Dh70b fund transfer to pump liquidity into banking sector and announced on Monday it would guarantee all bank deposits including those with foreign commercial banks that have significant retail operations in the country. (source: Gulfnews: Mohammad Bin Rashid orders Dh70b fund transfer to pump liquidity into banking sector)

The decisions are reassuring UAE residents about their financial situation, at a time when people around the world are worried about their savings. According to bankers, finance professionals and business leaders the decisions are also a major move in boosting investor confidence in the country's economy and financial system. (source: Gulfnews: Investor confidence gets big boost)





Investor confidence gets big boost

By Babu Das Augustine, Banking Editor, Shakir Husain and Suzan Fenton, Staff Reporters
Published: October 13, 2008, 23:28

Dubai: The UAE federal cabinet on Sunday decided that the government will guarantee the deposits with both local banks and international banks having significant retail operations in the country.

Bankers, finance professionals and business leaders welcomed the move and termed it as a major move in boosting investor confidence in the country's economy and financial system.

Malcolm Wall Morris, CEO of Dubai Gold and Commodities Exchange (DGCX), said: "The step is both timely and positive. It is reflective of the government's strong guidance and will further help unlock liquidity. It will assist in accelerating the growth of commodity trade in the region and enable more investors to hedge their risk on DGCX."

Salaam Al Shaksy, CEO of Dubai Bank, said: "The measures offer assurance to bank customers, investors, and members of the UAE's financial community at large, of continued liquidity and overall financial security. By recognising the situation and addressing the potential for trouble proactively, these preventive measures will inject confidence in an already strong economic environment, further sustaining long-term growth and stability."

Hussain Sajwani, chairman, Damac Group, said: "The government of the UAE recognises that stability in the UAE financial market is important in helping the region to be resilient to the effects of the current global financial crisis. The announcement that all assets held in local and international banks in the UAE will be secure, can only help to strengthen investor confidence in this market and this is positive news for all businesses in the country."

Shayne Nelson, Standard Chartered Regional Chief Executive Officer, MENA, said: "Standard Chartered remains a net lender to the interbank market and will continue to contribute in helping with the sustainability of the banking sector in the UAE. Standard Chartered is confident that these steps by the UAE Government will help consolidate the short to mid-term sustainability. We remain well capitalised and have a strong liquidity position. The bank is in great shape and has no direct exposure to the kind of instruments that have led to the current financial turmoil."

Saeed M. Salah Al Deen, Managing Director of ETA Ascon Star Group, said: "In the midst of all this global cry of gloom, the UAE Government has made an unprecedented move to stabilise the financial system even before any negative impact is felt. Looking at the world scenario, investors in the current market might have acted in panic. But the timely move from the UAE Government will definitely help in restoring confidence. Without doubt the UAE economy enjoys healthy fundamentals and thus provides a strong base for business enterprises. It is at times like this that you are reminded of the benefits of doing business in UAE."

Edward Quinlan, Country Partner. Ernst & Young, said: "Unquestionably an excellent move. It has reassured all. Invariably all our clients have responded positively. It has once again proved that the UAE has a very safe investment environment and the country is safer than many other countries in keeping your savings.

Khalid Kalban, chief executive officer of Dubai Investments, said the government's efforts would bolster the economy.

"The timely decision demonstrates that our leaders are fully aware of international events and are more than capable of facing up to global challenges. The government decision to insure UAE banks against credit risks and guarantee the banks' deposits will guarantee the flow of liquidity within the UAE market, and underline the strong fundamentals of our banking and financial system."

Abdullah Al Hamli, Dubai Islamic Bank chief executive officer, said the government has acted in line with the long-term economic goals of the country.

"As one of the leading financial institutions operating in the banking sector, we will continue to support the national economy through our expansion into new markets and further consolidation of our market-leading position in the financial and banking sector of the region," he said.

[jennyhicks]

If I was looking at buying an overseas investment property, would you reccommend Dubai then?

[algha]

Dubai is still good on selective projects but i think Abu Dhabi has more potential for growth in general over the coming 12 months. economically i think Abu Dhabi is stronger and certainly has greater financial resource, population growth estimates are high albeit they are coming off a lower base than Dubai. the key reason i'm picking abu dhbai over dubai (in general) is that dubai has enjoyed several years recent growth whereas Abu Dhabi has been taking a more measured approach to development and has more headroom left for growth and capital returns.

[Dubai0Guy]

Yes very true but Abu-Dhabi will be good for people wanting to live there for long leases. And so will Dubai because of the free-zones and workers there. The prices in Abu-Dhabi are expensive as each other. But Dubai has tourism and attraction in the next ten years. And Free-zones with deals from china to bring a million people a year. 200k will be labourers but at least 400k will be middle earners lookin at jumierah village or Jebel Ali or dubai investment park. All these lower priced properties. And these big companies put towards the rent so we need at least 51,000 units a year to accomodate just this. what about the 183 other nations with millions of people passing thru the dubai international airport every day.

Yeah abu-dhabi is great investment but for the sake of the expensive prices your much safer in dubai in my opinion. no matter what people say dubai property is always going to be strong. may have its peaks and troughs but overall its the safest long term investment out there. Ras al khaymah is also looking good. Ajman............... problem.................. and Um al quwain is steady.

andrewgreenwood55 at hotmail com for any advice

[Gashead]

Have a look at today's papers, all going south again.

As they say, even a dead cat bounces.

[DoBuy]

Real Estate Markets of the Middle East Will Outperform All Other Regions

Says Jones Lang LaSalle in its first Investor Sentiment Survey, in association with Cityscape.



• Middle Eastern real estate markets expected to significantly outperform all other regions
• Middle East expected to be one of the regions least impacted by global credit squeeze
• Investors remain bullish on UAE, Saudi Arabia and Qatar

Dubai and London, 7th October 2008 - The real estate markets of the Middle East will outperform all other regions, according to findings from the Investor Sentiment Survey, an in depth study of real estate professionals market views conducted by Jones Lang LaSalle in association with Cityscape Dubai, the world's largest real estate conference and exhibition. The report also reveals that almost half of all respondents believe UAE will offer the best performing real estate market in the Middle East over the next 1 – 2 years, with the Kingdom of Saudi Arabia to be the next best performer.

Pooling the views of a sample of over 350 local developers, sovereign wealth funds and high net worth investors, the survey is the first of its kind conducted in the region. Jones Lang LaSalle is the world's leading real estate advisory firm and was recently recognised by Euromoney Magazine - Liquid Real Estate awards as UAE Property Advisory Firm of the Year at a prestigious ceremony in London.

"This report is not only the first of its kind undertaken in our region, it will provide a critical benchmark as we look to evaluate this vital sector in the coming months and years," said Blair Hagkull, Managing Director, Jones Lang LaSalle, MENA.

"Sentiment is a critical component when considering the health of any market. It is an important barometer, a key assessment criteria for any investor and the ideal gauge for considering future prosperity. We are thrilled to be releasing this report, conducted in association with Cityscape at Cityscape Dubai 2008. It is planned that this new benchmark for the health of the regional real estate market will be repeated."

The 2008 Investor Sentiment Survey was undertaken in the aftermath of the collapse of US Investment Bank, Lehman Brothers and is thus the most up-to-date and relevant source on investor sentiment in the MENA region.

Key findings of the report include:

Middle Eastern real estate markets are expected to significantly outperform all other regions

• Over 50% of the respondents believe the real estate markets in the Middle East will see the strongest performance of any region worldwide over the next 1-2 years.
• Asia Pacific, driven by India and China also has a strong outlook with more than 20% of respondents believing it will be the best performing region.
• Investors are least positive towards Western European real estate markets, with only 3% expecting this to be the strongest performing region.
• Most Middle Eastern investors do not believe the US and European markets will witness a major improvement in performance in the short term.

The Middle East is expected to be one of the regions least affected by current global economic conditions. Affects most obviously felt in North America but this could also provide most opportunities for value purchases over the next 12 -24 months.

• There is a clear inverse relationship between strongest performing real estate markets and those economies expected to be most impacted by current global economic environment.
• Investors suggest emerging markets in MENA, Asia-Pacific and Eastern Europe will be least affected by economic crisis.
• Conversely North America is felt to be most seriously impacted by global economic environment (57%).

Middle Eastern investors are well positioned to take advantage of difficult conditions elsewhere. Now is a good time for Middle Eastern investors to export capital through purchase of overseas assets

• Almost half the respondents (45%) suggested Middle Eastern investors stand to benefit the most through their ability to export capital.

While confidence towards the Middle East is higher than elsewhere, the region is not totally sheltered from the chill winds of the global economic environment.

• Less than 20% of investors felt that the current economic situation was having a significant impact on real estate markets across the Middle East.
• Over 40% of investors suggest the current global economic environment is having little or no impact on their approach towards real estate investment in the Middle East.
Mixed views on future conditions in global capital markets, with no clear consensus on whether economic conditions are close to 'bottoming out'
• Over 60% of investors are optimistic that global capital markets will either remain the same or improve over the next 1 – 2 years.
Investors remain bullish towards the UAE, which is expected to show the best performance over the short to medium term. Saudi Arabia offers strong potential as this large and rapidly growing market continues to open up and offer new opportunities. Qatar is expected to offer strong performance, building upon its reputation as the next emerging GCC real estate market
• Almost 50% believe UAE will offer the best performing real estate market over the next 1 – 2 years. Further analysis shows that investors are particularly confident about the future performance of the Abu Dhabi market.
• Almost a quarter believe that Saudi Arabia will offer strongest performing real estate markets, driven by large and rapidly urbanising population and new legislation which is opening up of real estate market. Qatar emerges as the best performing GCC market (exc. KSA/UAE), with less investors expecting Bahrain, Kuwait or Oman real estate markets to perform the most strongly.

Commenting on the survey's findings, Ian Ohan, Head, Investment Transactions, MENA at Jones Lang LaSalle said: "The Gulf Region offers strong relative international value with active buyers in the region generally looking to transact at 8 - 8.5% yields for prime commercial operating assets and slightly higher for hospitality product. This is consistent with recent market evidence, however will likely bow to upward pressure as the cost of debt rises.

"Maturing markets is the key theme here. Asset pricing in the region is increasingly being underpinned by cash flow valuation reflecting a shift from development-led to capital-based real estate markets. We are anticipating greater transaction activity as sellers' value expectations begin to more closely resemble income valuations as debt markets tighten and speculative exit opportunities decline."

"Investors are looking for strong capital growth in Abu Dhabi, the Kingdom of Saudi Arabia and Qatar, reflecting their robust economic potential and more nascent stages in the real estate cycle. The issue of market transparency is high on the agenda of investors. This is being aggressively addressed through sustained government initiatives including the enacting of international best-practice legislation and the enforcement of strong corporate governance initiatives."

[sameer.dada]

I don;t think the market is back on track. I think it is completely dead. No one is buying. Everyone is selling. And when those selling cannot make installment payments, everything will collapse.

[DAYFox]

Originally Posted by sameer.dada

I don;t think the market is back on track. I think it is completely dead. No one is buying. Everyone is selling. And when those selling cannot make installment payments, everything will collapse.

A few flippers are in trouble because of the new laws, but dont generalize this issue on the whole property sector!!!

[DoBuy]

Originally Posted by DAYFox

A few flippers are in trouble because of the new laws, but dont generalize this issue on the whole property sector!!!

Agreed.I put a unit on the market last week at a slightly higher price than what other similar units are going for,and the agent got me a buyer straight away.
However,I've decided not to sell after all and wait till its completed.
There might be some easily influenced panic sellers out there but I'm not one of them.

[sameer.dada]

I certainly hope you're right Dobuy.

When are the new laws going to take effect?

Dobuy, could you email me your agent's contact? Maybe he/she could sell my units as well.

Thanks.
sameer dot dada at gmail dot com