Some $32.6 billion is being injected in the country's financial system to bolster liquidity.
In response to a raft of recent headlines predicting a major downturn in the Dubai property market a high-level committee has been formed, Mohamed Alabbar, a Member of the Dubai Executive Council and Chairman of Emaar Properties, has confirmed.
Speaking at the World Economic Forum's Global Agenda Summit, he said recent price corrections are not to be feared or seen as signs of a major downturn. 'Domestic demand for real estate continues to outstrip supply and the shift towards an end-user market is a positive force,' he said.
Alabbar said the Government is committed to creating stronger transparency and confidence-building measures and is keenly monitoring the property market.
'A high-level committee has been exploring several initiatives to boost market confidence. In response to the global financial crisis the UAE Government is injecting $32.6 billion into the country's financial system to bolster liquidity and strengthen the financial system,' he added.
The property sector is free from the kind of risks that have led to real estate crashes in the US and UK, he pointed out. 'A majority of the investments in real estate is equity or cash-driven, unlike other markets, which are predominantly mortgage-driven. This takes out a lot of risk from the system,' he said.
Meanwhile other in the sector are voicing their confidence in the market. 'We have great confidence in the real estate market, and believe that the region represents the safest and most stable market for many capitals, despite the current financial crisis,' said Marzooq Al Rashdan, managing director of Abyaar.
He said that expectations of a general market reform would help create new investment opportunities and that real estate opportunities in GCC markets are open to all, and to real estate developers in particular, thanks to working environment that encourages productivity and innovation.
