Boom coming in next two years – Sheikh Maktoum

Companies in Dubai need to prepare now for a boom that will be coming in the next two years, one of the emirate’s leading business personalities has warned.

“My prediction is that in the next 24 months there is a boom coming that will take everyone by surprise. Those best positioned to take advantage of this boom will be the companies that remain, survive, innovate and improve,” Sheikh Maktoum Hasher Al Maktoum, CEO of Al Fajer Properties, told the audience at the CEO Middle East Awards, held in Dubai.

“We’ve had our hiccups, but what I see is that transparency has improved, we don’t have any more black boxes and the fundamentals of investment have come back, even though bankers are more conservative at the moment.”

As one of the observers who predicted the real estate slide three years ago, Sheikh Maktoum described Dubai as ‘a small cup’ which was easily emptied, but also easily refilled.

“In 2007, when I said that the market could correct by 50 percent, this is when I decided to enter into real estate. People make money when the prices are low, not when the price is already high,” the sheikh added.

The Al Fajer CEO also revealed that the government had been working hard on a ‘marketing platform’ to restore the image of Dubai and reassert the emirate’s presence in the Middle East.

“Legislation has been brought in to encourage immigration and investment in the UAE and you are going to see boards being formed to consolidate all the free zones under very similar management. There will be more working together which will be positive for everybody.”

Sheikh Maktoum said that the recent fall in property prices had resulted in a powerful incentive for foreign firms to come and base their businesses in the UAE.

“Right now the prices here are about $200 a square foot, which equates to about a year and a half to two years rent in the UK. So for two years rent, if you’re a hedge fund or a consulting firm, it makes sense to move here,” he claimed.

In addition, the sheikh said that Dubai’s infrastructure – roads, power and free zones – ensured that the emirate would attract leading businessmen wishing to operate in the emerging markets.

He also stated that while Dubai had suffered from some downside risks during the worldwide recession, the investments the emirate had made in terms of infrastructure were clearly visible.

“If you look at other countries like Ireland that are having difficulties, it is very hard for them to say where the money was spent,” Sheikh Maktoum said.

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