09 Oct 2008
Economies that are underpinned by a growing population and high level of disposable income will be less affected by the global liquidity crunch, said a top official of Tatweer Investments.
"The liquidity crunch will have a global impact but in varying degrees. Whatever you see in the Western markets is yet to come into this region. There will be a nominal slowdown in this market. The accelerated growth that we have seen upto now has been rather unusual but definitely our economy is far from falling," Ahmad Sharaf, Chief Executive of Tatweer Investments, told Emirates Business.
According to the CEO, what will be important in 2009 is the offering that we will see from developers in terms of what kind of developments they will put up in the Dubai market.
"Developers have to be prudent in what they will offer and ideally should develop according to the demand in the market. Currently, there is a huge dearth of mid-income projects in the market," said Sharaf.
In September this year, Tatweer established two distinct divisions in the name of Tatweer Dubai and Tatweer Investments to split the operations of Tatweer's various entitities such as Dubailand, Mizin, and the entertainment developments under these two divisions.
According to the restructuring of Tatweer's operations, Mizin with Dh120 billion worth of projects announced till date has fallen under the realms of Tatweer Investments.
Tatweer will develop 25 per cent of the portion within Mizin and the rest of it will be developed by various sub-developers.
According to Sharaf, the recent fall in construction prices is being studied by the company as to whether it was a case of short-term correction or long-term correction and accordingly will look at passing on the benefit of this to buyers within Mizin.
