Dubai-based developer Rizwan Sajan said “it’s just a matter of time for the [construction] sector to come back” in the Gulf region, despite the impact of Covid-19 pandemic.
The founder and chairman of Danube Group, which has launched multiple projects across Dubai, said the construction sector in the GCC region is linked to the price of oil and once the price nears $50, the property market will see a resurgence in activity, including more projects being launched.
“As long as oil price remains above the breakeven oil price level of $50, the sector will benefit from it as the governments will continue to build infrastructure and expand housing facilities for its people,” said Sajan.
So, it’s just a matter of time for the sector to come back. Oil is already trading above $40, while half of the world is still under partial lockdown. Oil price will rebound to above $50 in a few months, when the construction sector will see new projects coming up.”
Sajan said the region’s “world-class infrastructure, strong global connectivity, liberal laws, investment-friendly legal reforms”, as well as the good quality of life, will continue to attract foreign investment and investors to the region, which he said will drive the demand for new facilities that will drive the demand for construction activities.
“We do not see a lull in the construction activities in the near future,” he said. “The current market sentiment has been dampened by the Covid-19 pandemic and it doesn’t give the right picture. The macro-economic fundamentals will continue to remain strong for the GCC. The current situation is a temporary hiccup – in the larger scheme of things – and should be seen likewise.”
Source: Arabian Business
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