Date: February 28, 2015 AMAR FINANCE & LEASING COMPANY GCC Region – Real Estate Newsletter AMAR FINANCE & LEASING COMPANY Contents Executive Summary ...................................................................................................... 1 Economic Overview ....................................................................................................................................... 1 Real Estate Sector ............................................................................................................................................ 2 Residential Sector ............................................................................................................................................. 2 Commercial Sector .......................................................................................................................................... 3 Major Projects .................................................................................................................................................. 5 Kuwait ........................................................................................................................... 6 Economic Overview ....................................................................................................................................... 6 Real Estate Sector ............................................................................................................................................ 7 Residential Sector ............................................................................................................................................. 7 Commercial Sector .......................................................................................................................................... 8 Major Projects .................................................................................................................................................. 9 The UAE ..................................................................................................................... 10 Economic Overview ..................................................................................................................................... 10 Real Estate Sector .......................................................................................................................................... 11 Residential Sector ........................................................................................................................................... 12 Commercial Sector ........................................................................................................................................ 14 Major Projects ................................................................................................................................................ 16 Kingdom of Saudi Arabia (KSA) ................................................................................. 17 Economic Overview ..................................................................................................................................... 17 Real Estate Sector .......................................................................................................................................... 18 Residential Sector ........................................................................................................................................... 18 Commercial Sector ........................................................................................................................................ 20 Major Projects ................................................................................................................................................ 22 Kingdom of Bahrain ................................................................................................... 23 Economic Overview ..................................................................................................................................... 23 Real Estate Sector .......................................................................................................................................... 24 Residential Sector ........................................................................................................................................... 24 Commercial Sector ........................................................................................................................................ 25 Major Projects ................................................................................................................................................ 26 Oman .......................................................................................................................... 27 Economic Overview ..................................................................................................................................... 27 Real Estate Sector .......................................................................................................................................... 28 Residential Sector ........................................................................................................................................... 28 Commercial Sector ........................................................................................................................................ 29 Major Projects ................................................................................................................................................ 30 Qatar ............................................................................................................................ 31 Economic Overview ..................................................................................................................................... 31 Real Estate Sector .......................................................................................................................................... 32 Residential Sector ........................................................................................................................................... 32 Commercial Sector ........................................................................................................................................ 33 Major Projects ................................................................................................................................................ 34 Contents infrastructure projects, stimulus measures, Executive Summary ...................................................................................................... 1 Executive Summary accommodative monetary policy, and social spending in Economic Overview ....................................................................................................................................... 1 One of the most defining events in 2014 for the GCC the form of generous grants, wage hikes for public sector Real Estate Sector ............................................................................................................................................ 2 countries was undoubtedly the sharp fall in oil prices, as it employees and large-scale subsidies. was completely unexpected at the beginning of the year. Figure 02: Real GDP Growth (%) of GCC Residential Sector ............................................................................................................................................. 2 According to Markaz, oil prices fell by a whopping 48%, 12% Y Commercial Sector .......................................................................................................................................... 3 to as low as USD 55.8/barrel in June 2014, because of - o - 9% Major Projects .................................................................................................................................................. 5 increasing supplies from non-OPEC producers, stubbornness of OPEC producers to act as swing 6% Kuwait ........................................................................................................................... 6 producers (a supplier or a close oligopolistic group of 3% % Growth Y Growth % Economic Overview ....................................................................................................................................... 6 suppliers of any commodity, controlling its global deposits 0% 2010 2011 2012 2013 2014 E 2015 F Real Estate Sector ............................................................................................................................................ 7 and possessing large spare production capacity), and subdued demand growth expectations. Oil GDP Non-Oil GDP Real GDP Residential Sector ............................................................................................................................................. 7 Source: IMF, January 2015 Commercial Sector .......................................................................................................................................... 8 GCC countries are focusing on diversification for a According to the IMF, real GDP grew by an estimated healthy survival in the long run. In H2 2014, almost all the Major Projects .................................................................................................................................................