A new report has re-iterated recent findings that the reason that sales activity figures are not currently higher in the Middle East is because there are actually not enough investment grade assets available at present for investors who are keen to invest now that confidence appears to be returning to the markets.
Therefore at present there are simply not enough investment assets available at the right price to entice buyers to part with their cash. This situation has been on-going for the past six months and it is now hoped that this will lead to a more stable phase on the markets.
At present analysts are saying that the two main factors contributing to this current situation are local demand in markets with large local populations leading to a strong domestic demand for products from countries such as Saudi Arabia and Egypt. The second factor is the ability of energy rich countries to invest huge amounts of money in infrastructure to keep the economy buoyant such as projects being seen in Abu Dhabi, Qatar and Saudi Arabia.
The leading country according to the survey is Saudi Arabia as it offers both a large domestic demand market and it has had the highest real estate sector performance during the past twelve months.Paul Holdsworth, Staff Writer, Gulf Jobs Market News