The historic deal to end the regional dispute between the UAE and Qatar will see a “flood of investment” between the two countries, according to Scott Cairns, managing director of Dubai-based Creative Business Consultants.
The UAE was joined by Saudi Arabia, Bahrain and Egypt in signing the accord with Qatar on Tuesday in a mirrored concert hall in the northwestern Saudi town of Al Ula, during a summit of Gulf Cooperation Council (GCC) leaders.
It brings the regional split, which erupted in 2017, to an end.
In terms of the UAE, Cairns told Arabian Business that the agreement would have particular benefit for the country’s construction industry, which has been hit particularly hard by the coronavirus crisis and the drop in oil prices.
He said: “We anticipate a flood of investment between the UAE and Qatar upon the borders and trade opening up again. This will be a much-needed shot in the arm for the UAE construction industry which has previously put many projects on hold.
“Inward investment from Qatar could see a reinvigorated construction industry in the UAE as Qataris come shopping for under-priced real estate assets in the UAE.”
Scott Cairns, managing director of Dubai-based Creative Business Consultants
While he added that the boost to the sector would also reap rewards in the opposite direction.
“With the 2022 World Cup in Qatar coming next year, we foresee a boost for UAE construction companies as they assist in meeting the demand the World Cup projects are bringing,” he said.
And Cairns revealed there has already been interest in businesses looking to “take advantage of these new developments”.
He said: “Overall, the UAE is poised to greatly benefit in 2021 with new markets opened in both Israel and Qatar. We predict a very bullish market as Q1 and should see a flurry of first movers looking to take advantage of new opportunities.”
Graeme Pattison, Qatar account manager, Losberger De Boer, which manufactures, supplies and installs temporary structures for events, said the recent announcement will have a significant impact on business.
“This agreement will allow us to transport finished structures and components more freely within the region, which means we will be better positioned to deliver space solutions to our clients in a timely manner at very short notice… From a purely logistical standpoint, open borders between Qatar and other GCC countries will allow us to fulfil customer requirements more rapidly.
“The bottom line for Losberger De Boer is that we will be able to get our products where they are needed much faster at a lower cost, as they won’t need to travel as far, and we will be able to move goods via road rather than air.”
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