Local Business

Dubai limiting supply from govt-backed developers

Waheed Abbas/Dubai
Filed on January 27, 2020
File photo

The committee seeks to create a comprehensive plan for the real estate sector's development and ensure that projects are not duplicated.

The Higher Committee for Real Estate Planning established in November last year to bring balance between supply and demand is monitoring the local market and limiting the supply from government-backed developers, said a senior official on Monday.

"One important thing that the committee announced that they are monitoring and limiting the government-related entities' supply in the market. This is very important in the next three to five years. This is where the government has allowed that if there is any opportunity in the market, let the private sector lead," said Hamad Buamim, president and CEO of Dubai Chamber of Commerce and Industry.

"Oversupply might be good for consumers with rents going down, but it's not good for the developers. As we know, the current situation is challenging for the sector. However, we believe that this committee will contribute positively to the real estate," Buamim said during the media briefing on Monday.

The committee seeks to create a comprehensive plan for the real estate sector's development and ensure that projects are not duplicated.

Real estate consultancy Asteco and Core predicted that 50,000 units will come online in Dubai this year. It will be the highest ever supply of residential units in the emirate. Dubai Chamber president said the emirate's economic pillars are strong with new technologies driving its growth over the past three years.

"A lot of growth that we saw in the past three years was in the areas of new economy such as fintech, blockchain and traditional sectors," he said, adding that in the post-Expo 2020 era, these new technologies will continue to be the main drivers of the local economy.

Buamim highlighted that there are limitations to growth from the stronger US dollar, geopolitics challenges and regional competitiveness, but any direct impact of these will be minimal.

Revealing Dubai Chamber's growth, Buamim revealed that 18,260 new members joined in 2019, topping 245,000 companies, marking year-on-year growth of 28 per cent.

Also, Dubai Chamber will host over 33 business events also during Expo 2020 Dubai, attracting over 20,000 government and business leaders from around the world The largest events to be organised by Dubai Chamber at Expo 2020 Dubai are the inaugural Global Business Forum Asean (2020), the next editions of GBF Africa and GBF Latin America (2021) and the World Chambers Congress 2021.

In 2019, Dubai Chamber opened new representative offices in Buenos Aires, Argentina and Shenzhen, China. Currently, it operates 11 offices across Africa, Eurasia and Latin America, and plans were announced last year to open a new office in Mexico in the near future.

Over 778,000 certificates of origin were issued in 2019 while the number of attestations increased slightly to 18,832 last year. A total of 5,784 ATA Carnets were issued and received in 2019, while the value of goods covered by these documents surged 78 per cent to Dh5.7 billion in 2019. In addition, the value of Dubai Chamber member exports reached Dh226 billion.- waheedabbas@khaleejtimes.com

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