More PE funds may finance Gulf property

The Middle East will see a number of real estate-focused private equities players in the next six months as debt practically dries up in the region, according to an expert.

"Private equity funds have been the only source of funds for those in need of capital. In the coming 12 to 18 months equity funds will be the turnaround investment module," Elie Habib, Senior Vice-President of Global Investment House (GIH), told Emirates Business. "Affordable housing products will be the most opportunistic investment for private equity players in Saudi Arabia and Qatar," he added.

The Middle East could see an emergence of infrastructure private equity funds from new players while Dubai could witness a number of investments into the logistics sector.

According to Habib, the Abu Dhabi real estate market could be hit if the sentiment in the UAE real estate market continues to erode. "From a real estate perspective if the model that Dubai has built for itself succeeds, the Abu Dhabi real estate market will fare well. If Dubai's real estate sees a downfall then Abu Dhabi's real estate too will suffer. Most of the economy is now relying on sentiment, emotion and fear, and Abu Dhabi could be the first to be hit because it is dependent on the immigrant investor for its investments."

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