During 2016, Abu Dhabi showed remarkable resilience in an environment in which lower oil prices were a regular feature.
As a reflection of our diversified economy, highly creditable levels of growth were achieved and both companies and individuals continued to enjoy a safe, secure, efficient and affordable environment in which to live and to do business.
The most recent signals emerging from the OPEC discussions suggest that the oil price may be less volatile in 2017, with a higher floor, allowing economic planners a greater degree of freedom and visibility with which to make long-term investment decisions. Recent surveys also suggest that consumer demand across the whole Gulf region will remain strong.
Abu Dhabi itself has plenty to look forward to in 2017, due to the Abu Dhabi government’s ongoing investment into major projects within the emirate that will further diversify the economy and strengthen its ability to attract foreign investment and tourism.
As CEO of Aldar Properties, I believe that the long-term market fundamentals for Abu Dhabi are strong and therefore take a positive view on its future.
Over the last few years, Aldar has invested heavily in residential developments around the capital, as well as building up a portfolio of high quality commercial, retail and hospitality assets. Our developments are at various stages of maturity and we will see several of them complete during 2017, as well as good progress being made on sales of others.
Many of our projects are on Yas Island, which I have long believed is one of the most important destinations for both residents of and visitors to Abu Dhabi.
I expect 2017 to be a year of good returns on our investment in Yas Island. Much of our success has been underpinned by our destination development strategy, ensuring that we deliver the right product, at the right time, in the right location.
This is demonstrated by the strong demand shown in our developments when they go on sale. We are very confident in the quality of our products, and whichever part of the price spectrum they fall in, buyers will always feel they are investing in a premium asset for good value.
As for demand, I expect it to remain stable in 2017. The real estate law introduced in Abu Dhabi in 2016 has injected even greater levels of transparency and professionalism into the market, giving buyers confidence that they are transacting in a stable environment with good prospects for long-term growth.
In addition, as major infrastructure projects are completed across Abu Dhabi, suitably qualified professionals will be needed to operate them, further underpinning demand. The continued success of Abu Dhabi Global Market (ADGM) in attracting high numbers of new registrants since opening for business only a year ago represents another source of potential buyers.
This will be complimented by greater levels of foreign investment from places such as China, India and Saudi Arabia. There is increasing evidence that they see Abu Dhabi’s real estate market as offering a safe haven in a world where volatility still prevails in many places.
In conclusion, I am encouraged that the leadership of Abu Dhabi has put in place a sound platform for growth in 2017 and, combined with our own long-term commitment to quality and growth, I expect all our stakeholders to benefit: our customers, our residents and our investors.
Mohamed Khalifa Al Mubarak, CEO at Aldar Properties
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