At a time when many nations in the world are fearful of the credit crunch, property developers in Abu Dhabi are confident that demand will outstrip supply for some considerable time.
'In contrast to Dubai, where the earliest off-plan investment opportunities saw completion in 2002, the first completed units in Abu Dhabi will only be delivered in late 2009,' said James Gonzalez, market analysts at Obelisk International.
'Abu Dhabi remains a relatively new option for foreign buyers and lacks the market saturation of Dubai. It still remains an emerging market,' he added.
Although it is one of the world's largest producers of oil, Abu Dhabi decision to diversify into other sectors such as the property and tourism markets, is regarded as a positive.
Also the government is taking steps to protect the economy. In recent weeks it has pumped $33 billion into the banking system. Fitch Ratings expressed its approval of the government's moves to guarantee liquidity in the banking system.
'The risks of a UAE bank suffering a capital markets-driven liquidity crisis are limited as none of the banks are reliant on these markets. Their funding bases are predominantly based on retail and corporate deposits, with the balance as inter-bank borrowings and some limited debt capital market issuance,' said Robert Thursfield, Director of Fitch's Banks team.
One of Abu Dhabi's leading developers is also confident. 'Abu Dhabi is strongly positioned to weather the current economic crisis and the real estate market will be one of the main beneficiaries of that strength,' said Gurjit Singh, chief development officer, Sorouh Real Estate.
'With the local population set to grow steadily in the medium to long term, demand for homes in well-considered, sustainable developments will remain,' he added.