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Investors from Pakistan flock to Ajman
While the Gulf region is riding the swelling wave of real estate as the rest of the globe crashes under the credit crunch, in the relatively lesser known emirate of Ajman business is booming.
- By Suzanne Fenton, Staff Reporter
- Published: 23:58 August 15, 2008
- Some of Ajman's new construction projects. Pakistani investors are looking at the emirate as the ideal place to plunge millions of real estate dirhams.
- Image Credit: Megan Hirons/Gulf News
Dubai: While the Gulf region is riding the swelling wave of real estate as the rest of the globe crashes under the credit crunch, in the relatively lesser known emirate of Ajman business is booming.
There is $2 trillion worth of projects underway in all sectors in the Gulf Cooperation Council (GCC), according to market estimates. And a massive $330 billion of this is set aside for civil construction projects. This unstoppable construction boom is there for all to see, marvel at and invest in.
While the weakened dollar creates chaos in the once stable markets of the US and the UK, developers in the east are seizing opportunities here in the Gulf, not only in Dubai but perhaps the dark horse of all the emirates, Ajman.
With an area of just 260 square kilometres, Ajman is the smallest of the seven emirates and the second emirate, behind Dubai, to offer freehold property. The current population of Ajman is a little over 360,000.
As the political problems in Pakistan intensify, Ajman is benefiting from the Pakistani developers flocking to the emirate in droves.
Hasnain Raza Lathubhai, partner at UAE-based development company, Skymax agreed the current political tensions in Pakistan are not helping business. He said there probably is a link between the situation and the increase in Pakistani money in UAE property projects. "To tell you the truth, things are pretty down. But Pakistan, if you look at its history, has gone through down periods like this before, and always comes out more expensive and more developed," Lathubhai said.
There are countless Pakistani developers building in Ajman, obviously seeing it as the ideal place to plunge millions of real estate dirhams.
Chapal World, Sweet Homes, Property House and Al Barakah are just a handful of developers throwing themselves into a plethora of mega-projects taking shape all along the Emirates Road in Ajman and in Ajman city itself.
These projects include Emirates City, Humaid City, Ajman Uptown, Awali City and Al Zorah.
Combined, they have a total development cost of well over Dh250 billion. To support such massive development, the Ajman government is also implementing a $1.4-billion infrastructure plan designed to beef up investor confidence in the emirate.
"As the third largest property market in the UAE, Ajman offers very attractive prospects for Pakistani investors," said Tahir Hussain, a vice president of the Pakistan Business Council in Dubai and also managing director of Schon Properties.
Hussain attributed increasing investor attraction to Ajman to government plans to build an international airport, improve infrastructure and the development of a host of large-scale developments are all contributing to the future boom of the emirate.
Lathubhai said the business relationship between Pakistan and the UAE is "more than close," due to the relaxed government policies and the well-known ease of doing business here.
Pakistan's popularity for real estate development can be clearly seen with the number of UAE developers looking across the water to Pakistan for lucrative development opportunities.
However, some developers wishing to expand in Pakistan have found it difficult to break into the market, with many pointing to the rising political tensions as the root cause.
UAE developer Limitless was recently in talks with the Pakistan government to develop the multi-billion Karachi Waterfront. However, discussions appear to have stalled for the time being for unspecified reasons.
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