Real estate projects in the next five years are expected to raise the UAE property sector's contribution to GDP from the current 11.5 percent to 14 percent in 2005, a bank study said on Saturday.
“The UAE chose to develop its tourism-related property projects as part of its national income diversification plan. Most of the projects are tourism-related and are expected to attract foreign investment," according to the Emirates Industrial Bank study, cited by the Gulf News.
Villas, restaurants and hotels are the major features of these projects, indicating that the tourist influx will be high, it said.
Mostly based in Dubai and Abu Dhabi, the projects will also raise the UAE's high standard of living still further. Housing schemes for nationals will have a similar impact on the level of services and public utilities.
The study said these projects would further boost the UAE's "exhibitions and conferences tourism", especially after the IMF/World Bank meetings in 2003.
The study said the construction industry was undergoing rapid growth, but added that the nature of property investment and proposed projects had changed.
In the 1970s and 1980s, property investments were primarily undertaken by the private sector, but in the 1990s joint stock firms began playing a major role.
The focus in the 1970s and 1980s was on infrastructure, public utilities and commercial and residential buildings, but tourism projects will be the major feature in next five years.
The projects will win the UAE a high economic and tourism status in the Gulf and the Middle East, especially because foreign ownership of shares in property joint stock firms is allowed.
Also, legislation allowing long-term foreign property ownership is in the pipeline, said the bank study - Albawaba.com
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