Dubai Shares Lead the Gulf in Real Estate Rallies
Dubai’s benchmark stock index has been leading the charge in the Gulf region, with real estate shares increasing in value in the past few weeks.
In the week leading up to May 23, The Dubai Financial Market General Index went up by as much as 1.7% for five consecutive days - the longest winning streak since March. Another record was broken as the shares rose an additional 2.7% on Sunday (May 23), matching the results from November 2019. Morgan Stanley predicts this trend will stay strong in the coming years.
Ali El Adou, Head of Asset Management at Daman Investments, mentioned that the vaccinations are helping a lot in terms of reopening the region for investors. This particularly applies to UAE and Saudi Arabia.
The UAE has one of the greatest immunization rates globally. According to Our World in Data, the UAE has delivered over 12.2 million doses so far, with 39.3% of its population fully vaccinated (May 24th). More than half of the population have received at least one dose.
The index went up in Abu Dhabi, Kuwait, Egypt and Israel. Saudi Arabia and Bahrain faced few changes. On the other hand, Qatari and Omani shares went down.
WHAT ARE THE TRENDS FOR 2021?
The Dubai 2040 Urban Master Plan has affected the real estate market in this area heavily. New supply forecasts for 2021 depends on the source. Knight Frank, a real estate consultancy, talks about "historic levels” of new supply arriving this year: 83,000 residential units in Dubai, an immense increase compared to last year's 35,808 units. On the other hand, Asteco predicts approximately 41.500 units (34.050 in 2020).
The COVID pandemic has left a major mark on both the business world and the people all over the world. However, many have fought on and achieved great results despite a lot of new issues. If you're one of these brave companies, don't be afraid to showcase your achievements!