Dubai: The proportion of international investment in the UK commercial property market from the Middle East has trebled over the past five years.
According to data produced for international law firm Trowers & Hamlins by DTZ, the international property consultancy, the Middle East accounted for 16 per cent of all foreign investment in UK commercial property in 2009, three times more than five years ago when it was only 5 per cent.
Middle East investors invested £1.47 billion (Dh8.12 billion) in UK commercial property last year, more than twice as much as five years ago (£723 million). Total foreign investment in 2009 was £9.45 billion.
Oman bought a 75 per cent stake in the Bishops Square development in the City of London for £334 million. Gulf-based Cavendish bought a £200-million stake in Meadowhall shopping centre in Yorkshire.
Trowers & Hamlins said Gulf-based investors used the fall in commercial property prices following the credit crunch to increase their exposure to UK commercial property.
The UK property market draws Middle East investors because it is liquid, carries few political risks and it is very easy to set up Sharia-compliant investment funds.
