A new peace agreement was signed between Israel and the United Arab Emirates (UAE) which made it the 3rd Arab country to formally normalize its relationship with Israel. This peace treaty between UAE and Israel will be a game changing initiative for both the countries and will open up new horizons for UAE by benefitting the key economic sectors and will bring prosperity to the region as stated by industry experts.
This treaty will be most beneficial for the real estate market of the region opening up new investment opportunities from the untapped market of the UAE.
On 29th August 2020, UAE scrapped the economic boycott against Israel allowing financial and trade agreements between these countries taking a key step towards normalizing ties. Both the countries are expected to have conversation this week to promote a bilateral co-operation in sectors like tourism, aviation, finance, trade, energy, health and security.
Certain strategies still await negotiations such as trade and travel links, opening embassies that are not discussed in the treaty at the time of signing but it is expected out of the treaty that it will drive the real estate market of UAE and will attract more investment from the untapped market in the region.
According to a data taken from a leading real estate consultancy that indicated that there were several significant demand-supply gaps during 2012 to 2014 where Dubai had over 90000 vacant residential units. However, UAE is expecting this gap to stabilize within 2018 to 2021 to attract huge investments from Israeli investors.
As per leading developers, this landmark move will help absorb surplus inventory to create more demand for residential units in Dubai offering exceptional lifestyle and infrastructure in the region.
The partner and director of Danube Properties, Atif Rehman welcomed the UAE-Israel Treaty with open hands and accepted it as a step in the right direction that will bring prosperity and economic stability in the UAE. He said:
“It’s a big initiative and will benefit the UAE economy in general and Dubai real estate in particular. The strategic move will help bring more investment into the UAE economy and the property sector will be major beneficiary of it.”
The economy of UAE, primarily Dubai is highly influenced by the real estate market. Moreover, Abu Dhabi and the other Emirates have shown great strides in enhancing their local property market in the upcoming years.
According to the latest data, the property sector of the UAE is around 5.4% (80.2 billion of GDP) at constant prices for the United Arab Emirates (UAE). It contributes around 7.4% or AED 15.5 billion and 3.6% or AED 28.7 billion of GDP for Dubai and Abu Dhabi, respectively.
The chief executive of Samana Group of companies, Imran Farooq said that this peace treaty will have a great impact on the socio-economic situation of the region.
We are hoping for great opportunities for the real estate market from this treaty and is looking forward to see the next move of the Emirate for the sustainability and stability of the region. With this treaty, plenty of new opportunities have been opened up for the real estate market.
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