Investments to hit Dh200bn in Capital

Infrastructure and real estate investments in Abu Dhabi are expected to reach Dh200 billion by 2012 as a result of the government's efforts to fill in the gap in the supply for residential units within the capital, according to a study undertaken by a real estate developer.

As the market maintains its stronger-than-expected growth, Bonyan International Investment Group (Holding), a Dubai-based real estate company, has identified high potential investment opportunities within the emirate in line with its regional expansion plans.

With the population growing at seven per cent per annum, the government's increased interest in boosting the tourism industry, and continuous development and modernisation of infrastructure, the Abu Dhabi real estate sector is headed towards an unprecedented boom. The developer's aims to leverage the outstanding economic climate in the emirate, which accounts for over 60 per cent of the UAE's gross domestic product, will involve its active role in supplying in-demand built space units while establishing a definitive benchmark for quality and best practices.

"Abu Dhabi is currently in the middle of a massive economic development that is expected to spill over to the next 15 years. We have identified the emirate as a highly potent market that can accommodate various large-scale developments through its modern and liberal growth policies," said Abdullah Atatreh, Chairman, Bonyan International Investment Group (Holding).

"As government efforts to create an appropriate legal framework to protect investors continue to boost both shareholder and client confidence in the market, we are seriously looking at giving the capital city a major place in our expansion plans."

Property prices in Dubai are projected to decline by 10 per cent, while Abu Dhabi is likely to see an increase of 25 per cent by 2010, US-based investment bank Morgan Stanley said in a recent report. It took a cautious long-term view on the Dubai market and had a neutral outlook on the Abu Dhabi market.

In line with its strong interest in venturing into the Abu Dhabi real estate sector, the developer has participated at the recently concluded Cityscape Abu Dhabi 2008, where it showcased its Dh3.5 billion "Eye of Ajman".

Following its significant presence at the event, the developer has announced that 85 per cent of the project has been sold.

Bonyan has pioneered one of the first towers for long-term lease in Sharjah and was responsible for building a number of luxury residential and high profile commercial developments in the UAE, Qatar and Lebanon. To date, Bonyan has developed Dh3 billion worth of residential and commercial developments in Dubai.