London Is Calling: A UK Delegation Visits the UAE to Negotiate Real Estate Deals
A government-led delegation of UK investors and developers is planning a trip to the Middle East to clinch deals with investors as they continue to pour money into the UK following Brexit. used cars
They will participate in two special events aimed at strengthening investment and commercial ties between the two areas, as total overseas investment into the UK from the Middle East surpassed AED 15.1 billion in 2016.
While Middle Eastern investors have traditionally been drawn to residential property in London, the Qatari government's AED 18.4 billion boost to its AED 229.5 billion real estate and infrastructure investment portfolio in the UK this month indicates that the appeal is far broader.
The UK delegation is led by Sir Edward Lister, the chairman of the government's Homes and Communities Agency.
"The Emirates have always been big investors in the UK, not only in London, but throughout the country, and that investment has always been welcomed," he said.
"Despite Brexit, the UK's lagging property dynamics remain unchanged." The demand for all sorts of real estate is extremely high. The UK government's housing objective is 250,000 homes each year, but even in a good year, we only manage 170,000, putting strain on housing across the country. We also need contemporary office space, as well as industrial and distribution storage.
"The UK is always a sound investment in a country where property is so effectively protected by the rule of law."
Sir Edward, who is also a former deputy mayor of London, said he was looking forward to meeting with Middle Eastern professionals to hear about the latest advances, particularly next-generation construction technologies, which may benefit the UK.
The UK's trading relationship with the region spans two centuries, and the special bond between the UK and the Gulf is reflected in the region's increasing trade figures.
Between 1999 and 2015, trade between the UK and the GCC increased by 185 percent, with the UAE being the UK's third largest export partner outside of Europe and 11th largest trading partner overall. The UK's overseas partnerships are expected to be strengthened and nurtured in the aftermath of Brexit.
"We already know that London residential property is a favored asset class among the region's wealthy, as our Middle East Private Capital Surveys have shown for a number of years," said Faisal Durrani, Head of Research at Cluttons. The 'eighth emirate' moniker is backed up by the massive amount of investment it gets from the Middle East, particularly the Gulf Cooperation Council states."
"In addition to Qatar's multibillion-dirham investment in the UK, Kuwait's Kamco and Dubai's Rasmala recently finalized an AED 248 million deal to buy an Amazon distribution warehouse near Edinburgh, which is responsible for three out of every eight Amazon parcel deliveries in the UK. And Abu Dhabi Investments just bought a 1.4 billion AED part in a Liverpool shopping complex."
The Rt Hon Liam Fox MP, the UK's Secretary of State for International Trade, recently penned an article for EG in which he stated that it was critical for the UK to continue to attract foreign investment.
"To fully realize our aspirations, the DiT will completely support the property market by matching investors with projects and facilitating foreign capital flows into investment opportunities around the country," he said.
"This involves things like creating homes, updating infrastructure, revitalizing cities, and fostering regional strengths like the Northern Powerhouse and Midlands Engine."
Developers in Dubai are also encouraging foreign investment.
"There is a very compelling business model here in Dubai," Sanjay Manchanda, the chief executive of one of the world's largest developers, Nakheel, said. To reduce risk, everyone requires a well-diversified portfolio. Dubai costs are quite competitive and substantially lower when compared to those in Hong Kong and Singapore, New York and London. In Dubai, real estate returns are currently approximately 5-10%."
"While the United Kingdom will always be seen as a safe haven for investments, the dizzying speed with which cities in the Gulf have risen is attracting the attention of the global investment community, particularly when you have mega projects like the USD32 billion Al Maktoum International Airport in the works, as well as ground-breaking new transportation infrastructure like 3-D pylons," Durrani continued.
The Middle East Real Estate Forum, which comprises two set-piece events aiming to strengthen investment and trade relations between the UK and the Middle East, will feature Sir Edward Lister, Sanjay Manchanda, and Faisal Durrani.
The activities will take place on April 25 in Abu Dhabi and April 26 in Dubai.
They are being organized by global real estate publication EG, which is collaborating with the UK Department for International Trade and international real estate consultant Cluttons to highlight Abu Dhabi, Dubai, and the UK's global ambitions.
The events will feature a number of well-known speakers who will share their perspectives on best practices in large-scale regeneration, development, and infrastructure delivery.
"This investment tour of the Middle East is taking place at a very exciting time," said EG Editor Damian Wild, who will chair the events. The United Kingdom is at a pivotal point in its recent history, and the Middle East is one of the most dynamic business environments on the planet. Senior individuals from the UK real estate industry have jumped at the chance to join the group, which intends to explore commercial and investment prospects in Dubai and Abu Dhabi.
"The investment prospects on display by the delegation span the length and breadth of the United Kingdom, and include everything from residential to commercial to infrastructure."
"By collaborating with Cluttons again, we expect to build on the success of our first forum, which we co-hosted three years ago in Dubai." We appreciate the Department for International Trade of the United Kingdom's cooperation as well. Many of the delegates who are traveling with us to the Middle East were also on a similar trip to New York and Toronto with DIT last year."