The Middle East

Bank lending in Kuwait remained relatively flat during the first half of 2011, though this may have more to do with demand than banks being unwilling to extend credit.

Like many of its neighbours in the Gulf, Qatar has seen the negative effects of the international economic downturn begin to fade over the past year. In the coming decade the local real estate market is expected to benefit from massive government infrastructure spending, a steadily expanding population and preparations for the 2022 World Cup.

Oman’s economy has become more competitive in the past 12 months, according to a recent report, and is steadily making the transition from having an efficiency-driven economic base to an innovation-powered one, a process that will gain further momentum thanks to increased government budget outlays.

Dubai’s capital markets are much better placed to handle the recent economic fall-out in the US and the eurozone, having learned several lessons from the 2008 global crisis and its own downturn two years ago.

Dubai’s property market is validating the adage that the three most important factors in real estate are location, location, location. While much of the market is expected to post modest gains this year before rebounding more strongly in 2012, residential and commercial properties close to the emirate’s growing metro network are increasing in popularity and value at a healthier pace.

Small and medium-sized enterprises (SMEs) play a growing role in RAK’s economy, enjoying government support and benefitting from continued upgrades to the local infrastructure.