Real estate development is one of the most active sectors in the GCC States and one of the most profitable investments in the region. Despite some setbacks in the past few decades, the real estate industry has seen tremendous growth and development.
Bahrain, the Kingdom of Saudi Arabia, and the United Arab Emirates are currently developing and implementing plans to propel the countries and the entire region forward. Vision 2030 is a plan to expand, enhance, and diversify income in the GCC through non-oil industries.
Bahrain, KSA, and the UAE have come to realize that tourism has been a massive contributor to the local economy. Future trends suggest that the industry will continue rising in the years to come. Therefore, there is a move towards adding new projects and improving on current ones. A growth in tourism will also release the countries from an oil-dominated economy to a booming and diverse one.
Bahrain’s Economic Vision 2030 was launched in 2008 by His Majesty King Hamad bin Isa Al Khalifa. Four years of in-depth discussions led to the creation of a vision that hopes to offer every Bahraini a better, more prosperous life.
Most governments of the GCC regard the real estate sector as a cornerstone of economic development in their countries. Therefore, a number of measures have been taken to strengthen the real estate sector and increase its profitability in order to attract foreign and regional investors.
In order to provide a strong foundation for real estate growth, the GCC governments have passed a series of laws and regulations that act as an organizational framework for the real estate market, making foreign investment in real estate significantly more attractive and easier. Many GCC countries such as the United Arab Emirates and Bahrain allowed ownership in more than one location.
In addition, government spending on infrastructure expansion has increased over the years to improve real estate status. Total spending by GCC governments on new infrastructure projects is expected to reach $300 billion over the next 5 years.
Infrastructure development will facilitate the creation of new residential and industrial projects and increase investor confidence in the regional real estate market.