New incentives boost UAQ realty prospects

Umm Al Qaiwain's property sector is set to experience a bright future thanks to the new incentives offered to potential investors.

The emirate set up the Umm Al Qaiwain Lands and Property Department in May 2002 to stimulate the sector and attract foreign investment. The department took dramatic measures to clear any obstacles hindering development of the sector.

Government incentives, modern infrastructure, new flexible legislations and rapid increase in population, are turning the local real estate sector into one of the most attractive one for investors.

Local market sources put the total value of investment in the real estate sector at Dh600 million with annual revenues of Dh70 million.

Abdul Rahman Al Zarounie, an institutional real estate investor, said investment in residential buildings is the most favourite portfolio to investors, followed by industrial property investment and commercial property investment.

"Funds pumped into the sector from Umm Al Qaiwain, other emirates and GCC account for 80, 15 and five per cent respectively of the gross investment," he said. He disclosed that around 400 flats and 150 villas and houses will enter the property market in 2003.

Real estate investment, he predicted, would witness remarkable growth in 2003, sparking a new era of urban development in the emirate.