Fujairah eyeing real estate upturn in 2011, says free zone chief

Emirate’s fledgling property market is attracting interests, says DG of state-backed trade hub

Fujairah's subdued real estate market didn't see the rapid growth that Dubai and Abu Dhabi did

Fujairah's subdued real estate market didn't see the rapid growth that Dubai and Abu Dhabi did

Fujairah’s underdeveloped real estate market could be poised for an upturn in 2011, the director general of Fujairah Free Zone (FFZ) has said.

In the last two years, the majority of companies joining the free zone were in the fields of real estate and construction, laying the ground for an upswing in real estate investment in the emirate, said Sharief Habib Al Awadhi.

 “The majority that we’ve been catering to have been regarding construction, building, engineering, designing and arrangements to do with the related fields of real estate activities,” he told Arabian Business.

Fujairah’s fledgling property market was least affected by the UAE-wide property crash, that wiped 60 percent off real estate prices in Dubai.

Fujairah, by comparison, saw a drop of 10 percent, according to a report by property services company Asteco, followed by Sharjah which saw a decline of 26 percent.

The emirate instead focused on investing in the oil and gas industries, while exploiting its location on the Gulf of Oman to develop its maritime industry.

The strategy helped stave off the worst of the effects of the economic crisis, which were felt strongly in neighbouring Dubai, said Al Awahdi.

“In many of these [emirates], it was simply a matter of copy and paste. We know about the international crisis, but it’s not only that, we’ve overdone many things. You have a country with a limited population, a limited geographical space and you have too many shopping centres, too many resorts, too many hotels, and it’s too many,” he said.

Trade from the FFZ comprises nearly 50 percent of Fujairah’s GDP, according to Al Awahdi.

Export trade from the zone is poised to hit $1.36bn in 2011, he said.

 

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Posted by: Tony P Restall

Fujairah has really developed from a sleepy little Fishing Village hanks to the FTZ and he supporting leadership of H H The Ruler of Fujairah. I drove through Fujairah recently and was amazed at the fantastic developments that have taken place in the past few years. Well done....

Tony P Restall
CEO/President
DSI Ltd
Phuket - Thailand

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