Sustained demand will drive real estate sector, says Alabbar

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Mohamed Alabbar, chairman of Emaar at the World Economic Forum.

"Domestic demand for real estate continues to outstrip supply and has positively shifted towards an end-user market," according to Mohamed Alabbar, Member of the Dubai Executive Council and Chairman of Emaar Properties in an address at the World Economic Forum's Global Agenda Summit.

Co-hosted by the Dubai Government, Alabbar said the Government is committed to creating stronger transparency and confidence-building measures and is keenly monitoring the property market.

"A high-level committee has been exploring several initiatives to boost market confidence," Alabbar said. In response to the global financial crisis, Alabbar went on to say the UAE Governement is injecting US$32.6 billion into the country's financial system to "bolster liquidity and strengthen the financial system." In response to growing concerns over the property market in the UAE, Alabbar responded:

The real estate sector's growth was Dubai's answer to the demand created by traditional sectors such as re-exports and trading; tourism and retail; transportation and logistics; manufacturing and the free zones.

"A majority of the investments in real estate is equity or cash-driven, unlike other markets, which are predominantly mortgage-driven. This takes out a lot of risk from the system," he said.

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