Dubai's ruler announced Monday the creation of a panel to address a glut in the property market, a key part of the economy but in decline for the past five years.
HH Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, and Ruler of Dubai, has approved the formation of Higher Committee for Real Estate Planning – chaired by HH Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai.
According to the Dubai Ruler, the committee would ensure that “semi-government real estate companies in Dubai [do not] compete with private-sector investors”.
Organisations such as General Secretariat of Dubai Executive Council, and Dubai Land Department, alongside semi-government companies including Investment Corporation of Dubai, Emaar, Nakheel, Dubai Properties, Wasl Properties, Meraas, Nshama, Meydan, Dubai Silicon Oasis Authority, Dubai South, and Dubai Multi Commodities Centre are part of the committee.
The committee will assess real estate market conditions, study market needs, evaluate future real estate projects, and develop an integrated plan for the local property sector to achieve a balance between the sector’s supply and demand.
In an Arabic-language report, Dubai Media Office announced that the committee’s efforts would seek to increase the real estate sector’s competitiveness and drive economic growth in Dubai.
The report added that the committee also aims to study the needs of the real estate market in a comprehensive manner, to ensure that real estate projects are not duplicated, and to avoid competition from big developers to small, private investors.
Additionally, according to the Arabic-language report, the committee will work to ensure “the uniqueness and excellence of new megaprojects" to ensure positive macroeconomic returns.
The chairman of the committee will have the right to add or cancel members as required.
The move comes a day after Sheikh Mohammed called for continued economic growth through projects and real estate developments for the coming season in an open letter, which was published through the Dubai Ruler’s official Twitter account.
'The Letter of the New Season', as the title read, outlined six main objectives for the coming period, among which was a call for real estate projects to “adjust their pace” and provide added value to the national economy.
(Source: Construction Week YouTube channel)