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Mon 5 May 2014 10:57 AM

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Next 5yrs could be "one of the biggest boom cycles" - Dubai royal

Sheikh Maktoum said there was "unlikely" to be another crash similar to what was seen in 2008

Next 5yrs could be "one of the biggest boom cycles" - Dubai royal
HH Sheikh Maktoum Hasher Al Maktoum.

The next five years will be great for investment and the global economy could see "one of the biggest boom cycles", HH Sheikh Maktoum Hasher Al Maktoum, executive chairman of investment bank Shuaa Capital and a member of the Dubai royal family said during his keynote speech a hotel conference in Dubai.

Speaking at the opening day of the Arabian Hotel Investment Conference (AHIC) in Dubai, HH Sheikh Maktoum Hasher Al Maktoum said that hospitality stands to benefit from another global economic boom.

“I believe in 2016-2020 we could see a boom-style economy globally, once all the debt has been restructured properly, once it has been rolled over,” he explained. “I think we could see one of the biggest boom cycles.

“We’ve already had a car crash in 2008; it is unlikely we will have another one, but you never know. At the end of the day I believe the opportunity is there to have a great five years for investment.

“The hospitality sector will be a winner. The healthcare sector will be a winner. Transportation and logistics will be a winner. Just remember, when you have a tourist coming to the country, not only does he spend money getting into the taxi and getting to the hotel, he actually comes and spends money and orders food. This money vents right through the system and everyone can benefit.

“But in order to make money, you have to put money down, and that is where the challenge is. I think it’s a good idea. I’ve personally invested in Dubai and I believe in Dubai.”

Sheikh Maktoum, who is executive chairman of investment bank Shuaa Capital and a nephew of UAE vice president, and prime minister and ruler of Dubai, HH Sheikh Mohammed bin Rashid Al Maktoum, also said that Dubai has learned its lessons from the financial crisis and that, despite the stresses put on the emirate, it had still pulled through the period, with the development of landmark projects such as Palm Jumeirah and Burj Khalifa, as well as infrastructure projects such as the Dubai Metro.

“People now can smell it, touch it, feel it; it is real,” he said. “We haven’t washed back into the ocean like some articles have said. It is a real economy. People like to live here.”

During his keynote speech, HH Sheikh Maktoum Hasher Al Maktoum backed up his optimism about Dubai with data showing that it has the strongest occupancies levels in the region at 88.4 percent and average room rates at $398.71.

He also explained how Abu Dhabi was witnessing consistent growth in demand while across the UAE hotel room supply was predicted to increase by 5.3 percent annually from 2012-2016.

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