Middle East Investors to spend $180 billion on Real Estate Outside of the Region

By Bizclik Editor

Up to $180 billion of Middle East wealth is set to be invested in commercial outside of the region over the next decade, according to consulting firm CBRE.

In its latest report titled ‘Middle East: In and Out’, highlights the enormous disparity between the amount of real estate to be found and the spending power housed in the region, with Europe the target of most of the $180 billion set to filter overseas.

Nick Maclean, Managing Director for CBRE Middle East, said: ““Since the global financial crisis, Sovereign Wealth Funds (SWFs) from the Middle East have become one of the most significant sources of capital in the global real estate landscape.

“The demand from these institutions has evolved during the last few years into a sophisticated source of liquidity for many of the mature real estate markets around the world.”

SWFs are pools of money derived from a country's reserves which are set aside for investment purposes that will benefit the country's economy and citizens.

Around $145 billion is expected to reach Europe with $85 set for the UK alone thanks to its lucrative private property market. France, Germany Italy and Spain are among the other key target markets.

Back in the Middle East CBRE also pointed towards Dubai as a key destination for inbound investment in real estate.

Another important site which could help keep investment inside the region in the coming years is King Abdullah Economic City in Saudi Arabia, which has been operational since 2010 and set to be completed by 2020 in an attempt to diversify the Saudi economy. 

Share

Featured Articles

Top 10 most innovative telecom operators in the Middle East

With Dubai-based Telecoms World Middle East in full swing, we chart the most innovative telcos from the region – and look at how they are transforming

Top 10 fastest-growing Indian companies in the UK

Business Chief takes a look at the top 10 fastest-growing Indian companies in the UK, according to the India Meets Britain Tracker from Grant Thornton

Top 10 workplaces prioritising people and planet in the UAE

Sustainable, flexible, collaborative, tech-driven, and amenities-rich, the office of the future considers both people and planet – here are 10 in the UAE

Top 10 female HR execs leading Saudi’s workplace transition

Leadership & Strategy

Top 10 largest asset managers by AUM operating in the UAE

Corporate Finance

Top 10 female CEOs leading Africa’s biggest businesses

Leadership & Strategy