Monday, October 29, 2007

Gulf property deals pass US$ 1 trillion

by Richard High from KHL's World Construction Week

Oil rich Arabian Gulf countries have started work on more than US$ 1 trillion worth of real estate projects as they spend windfall energy-export revenues on malls, office towers and theme parks, according to the latest report on the region’s construction and real estate sector by Dubai-based research & consultancy Proleads ... Such expenditure has only been possible thanks to the historically high price of oil, which have quadrupled since 2002 to a record high of US$ 90 a barrel. On the back of this the region’s governments are investing their money to reduce their reliance on energy exports by developing tourism, financial services and key industries. According to Proleads’ estimate the largest project in the six countries, the King Abdullah Economic City in Saudi Arabia, which has tripled in size to 168 million m2, is worth US$ 120 billion.

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