At tracting global investment

Mariecar Jara-Puyod, Senior Reporter

The Dubai property market has maintained its position as a perfect overseas investment destination among various Arab and non-Arab countries for many years now. This can be ascertained from the fact that it ranked among the top three global property investment destinations during 2020 when the entire world was battling the COVID-19 pandemic.

With a strong recovery on cards in 2021, the third quarter of the year recorded the highest-ever sales transactions since 2009 with 15,926 deals worth Dhs42.35 billion. By the end of Q3, 2021, 43,299 transactions amounting to Dhs104.3 billion have been recorded. The fourth quarter is expected to produce even better results as Expo-2020 is receiving great footfalls, according to Zoom Property Insights.

The troupe of foreign investors was led by the subcontinent as Indians and Pakistanis, who make up for 20 to 30 per cent of total investors in the Dubai real estate sector, continued to pour money in growing market of the region.

“Israeli investors have also ventured into the market this year with significant investments. They are likely to emerge in top 10 lists of nations investing in Dubai real estate this year,” according to Zoom Property Insights.

Analysts and real estate experts said visa reforms, successful pandemic management, and vaccination drive are among the top reasons that supported the return of foreign investors in 2021.

Ata Shobeiry, CEO at Zoom Property, said: “The last few years have seen huge amounts of investment by foreigners in Dubai. While India, Pakistan, and the UK are old players in the property market, new investors from Israel have joined the list of foreign investors in Dubai. Going by these trends, the coming years will also see more investment from foreign investors in the emirate”.

“Apart from a stable economy, expat-friendly policies, efficient handling of the pandemic, a secure investment environment, and visa reforms are some of the major reasons why foreign investors are attracted to Dubai. Expo 2020 impact on economy and real estate will also reflect in numbers by second quarter of next year,” he said.

Top Countries Investing the Most in Dubai Real Estate

Statistics obtained from DLD reports show that India, Pakistan, the UK, Saudi Arabia, and China are among the top countries that invest in the Dubai property market.

During 2020, when the COVID-19 was at its peak, the Dubai property market still showed resilience and attracted foreign investment. Indian investors topped the charts, while Chinese, British, Pakistani and French investors also occupied leading spots. Among GCC countries, Saudi Arabia, Kuwait, Oman and Bahrain remained at the forefront.

The year 2019 also saw the supremacy of Indian, Saudi Arabian, Chinese, and British investors in the real estate sector. Investors belonging to Pakistan, Egypt, Jordan, and Canada also made noteworthy investments in the market.   “The market is stable and it has a promising outlook due to growing demand from subcontinent investors and new entrants from US, UK, Europe and South American countries,” according to Zoom Property Insights.

Halal Cluster Week: Malaysia, which holds a significant share in the global halal market, is encouraging and pushing for more participation by governments and other individuals, leading to more partnerships in order to better serve the growing needs of the sector and demands of the consumers who are primarily followers of the Islam faith.

Gulf Today learnt about this from Malaysia Trade (MATRADE) Deputy Chief Executive Officer (CEO) Sharimahton Mat Saleh. Saleh is on a visit in the UAE with Halal Development Corporation (HDC) CEO Hairol Ariffein Sahari, Chartered Institute Logistics and Transport International President (CILT) president Dato Hajji Muhammad Muhiyuddin Bin Abdullah, and officials or representatives of 19 Malaysia-based halal small to medium enterprises (SMEs), for the Nov. 14 to 20 “Halal Cluster Week,” at the Malaysia Pavilion situated between the Mobility and Opportunity Districts of the Expo 2020 Dubai.

Saleh said that as of Oct. 2021, the global halal market was valued at $3.2 trillion (Dhs11,753,600,000.00), 80 per cent ($2.56 trillion/Dhs9,402,880,000.00) of which was cornered by the Southeast Asian country, whose population is at approximately 32.9 million, 63.5 per cent (21 million) of which are Muslims.

Classifying Malaysia as a “leading global halal hub,” Saleh continued: “It contributes an annual export value of $10 billion or 40 billion Malaysian Ringgits (Dhs36,730,000,000.00) for halal products, approximately four per cent of the country’s total exports. The halal industry only meets 80 per cent of the global demand for halal products and services. So, there is an opportunity for all players in the market to fill the missing 20 per cent.”

Meanwhile, as part of the thematic week, Sahari and Abdullah were the signatories to a Memorandum of Understanding (MoU), the signing and exchange of which took place at the pavilion on Monday.

Saleh told Gulf Today: “HDC and MATRADE, under the Malaysian Ministry of International Trade and Industry, will be using the ‘Halal Cluster Week’ to showcase the country’s extensive capabilities in managing a global halal ecosystem and simultaneously, attract global players to use Malaysia as a viable hub for the production of halal products and services.”

Sahari said: “’The Halal Cluster Week’ (at Expo2020Dubai) is an opportunity for us to increase the global awareness of Malaysia’s capabilities in halal production and promotion. Be it for halal funding with Islamic finance, or for halal integrity and traceability in the logistics industry which today, is one of the key sectors that is ripe for further development and investment.”

According to Sahari, HDC, formed in 2006 as the “world’s first-government-backed halal industry development corporation, spearheads the development of Malaysia’s integrated and comprehensive halal ecosystem and infrastructure to position Malaysia as the most competitive country (and leader) in the global halal industry. It is the central coordinator that promotes participation and facilitates the growth of industry players in the development of Malaysia’s halal ecosystem.”

It was hoped that through the MoU signing and exchange, the so-called Halal Supply Chain Management System (HSCMS) were strengthened and further advanced.

Sahari explained: “The comprehensive HSCMS will cover both the system and module developments, halal training programmes to 36 CILT country offices worldwide, and the development of halal talent and experts. We are expecting a significant increase in halal trade within the logistic industry with this partnership.”

Abdullah described CILT as the “leading professional body in the supply chain, logistics and transport” worldwide. Through the CILT Malaysia, we identified HDC as the (enabler) and the stepping stone to embark on halal businesses and to elevate the talents, and increase the halal trade and investments.”

The “Halal Cluster Week” consists of “daily though leadership and pocket talk sessions, networking engagements and business meeting sessions to drive investor interest, raise awareness and initiate potential partnerships and collaborations,” explained Saleh.

Sahari added that through the HDC’s Halal Integrated Platform and the Digital Augmented Reality Showcase of Halal Malaysia, 100 companies more, apart from the 19 visiting SMEs, shall be active participants at the week-long activity-virtually.

Kuala Lumpur is looking forward to fruition of the participation of the 19 SMEs at the “Halal Cluster Week” that offers a wide range of exploratory talks and business deals with interested stakeholders.

Malaysia’s participation at Expo2020Dubai was made possible by Kuala Lumpur’s Ministry of Science, Technology and Innovation. The implementing agencies are the Malaysian Green Technology and Climate Change Corporation.

The UAE was Malaysia’s largest trading partner in West Asia in 2020 valued at $5 billion (20.65 billion Malaysian Ringgits/Dhs18.2 billion). The primary products were electrical and electronic products, jewellery, machinery parts and equipment, petroleum products, and manufactured metals.