The Middle East

The real estate sector continues to draw attention from international investors in the region, which is welcome news as the kingdom looks to rebuild its property market following the global economic downturn of 2008.

Should the Gulf of Hormuz be closed to shipping, Saudi Arabia has proposed that the Kingdom’s Red Sea ports could be utilised for freight trans-shipment. The recent rise in tension in the Gulf region is a result of Iran making a series of thinly veiled threats to close the strategic Strait of Hormuz in retaliation to a US-led tightening of sanctions against Tehran, including halting the country’s oil exports.

The country’s banks are turning to the international bond market to bolster their cash reserves, which are likely to be needed to help fund the country’s massive infrastructure programme over the coming decade.

Momentum generated by a strong recovery in Kuwait’s real estate sector in early 2012 is expected to continue throughout the year. In February 2012, the National Bank of Kuwait revealed that real estate sales in January totalled KD318.1m ($1.14bn), a 64% year-on-year (y-o-y) increase, which represents the third-best level on record.

As Oman looks to renewable energy as a way to meet the increasing calls on its national electricity grid, investors are eyeing the Sultanate as a base for the production of technology needed to convert the rays of the sun into energy and profits.

With demand for electricity and water rising quickly, authorities in Abu Dhabi have taken steps to reduce consumption, including the introduction of a billing system that will indicate usage more clearly to consumers. Meanwhile, a recent study by an international consultancy firm shows that the introduction of some power-saving techniques could reduce electricity demand in the UAE by up to 50%.