According to a report by S & P Global Credit, eight factors will support the stability of the Dubai real estate market in 2020, most notably the number of large projects to be launched between 2019 and 2020, the increased economic activity associated with Expo 2020 Dubai, Buying, and increasing the interest of Asian investors, especially Chinese, residential real estate in Dubai. The agency expects the UAE to spend about $ 163.3 billion ($ 601 billion) over the next 31 years to reduce carbon dioxide emissions and increase the contribution of clean energy to the current energy mix from 25% to 50%. 2018, the UAE led the Gulf States in terms of volume of energy generated by renewable energy projects by 68%.

Real Estate Market

In a report at a press conference in Dubai yesterday, S & P Global Credit said that eight factors would support the stability of Dubai's real estate market by 2020.

The first factor is the number of large projects to be launched between 2019 and 2020, secondly the improvement in purchasing power after price declines, and the third is the return of Asian investors, especially Chinese, to residential real estate in Dubai.

Foreign ownership

The fourth factor is the easing of laws on foreign ownership of businesses outside of free zones, which supports the demand for real estate. The fifth factor is the cancellation by the central bank of the ceiling of 20% mortgage lending with banks as a percentage of total deposits. Alongside relatively low interest rates. The other three factors are the increased economic activity associated with the Expo 2020 Dubai, which is expected to attract about 25 million visitors to Dubai and to facilitate the granting of residence visas, such as long-stay visas to foreign investors whose real estate investments range between AED 5 million and AED 10 million , Reducing government fees by between 2.5% and 5% of the annual value of corporate rents.

Green financing

During the conference, S & P also reviewed another report on "green financing" in the GCC, noting that the UAE is expected to spend about $ 163.3 billion (AED 601 billion) over the next 31 years, CO2 emissions from generators, increase the contribution of clean energy to the current energy mix, and improve household and corporate consumption efficiency by 40% by 2050.

The report attributed its forecast to Abu Dhabi's 2030 strategy to reduce its dependence on oil and increase the contribution of the non-oil sector to 65% of GDP and to generate 7% of its capacity from renewable sources by 2020.

For Dubai, the report said it aims to increase solar production to 7 percent of the energy mix by 2020, 25 percent by 2030 and 75 percent by 2050.

Dubai Green Fund, set up by the Dubai Electricity and Water Authority (DEWA), will play a key role in green financing projects and provide easy loans to investors, the agency said.

The report showed that by the end of 2018, the UAE led the Gulf countries in terms of volume of energy generated by renewable energy projects, gaining 68%, followed by Saudi Arabia by 16%, and Kuwait by 9.11%.

Credit rating

"The banking sector in the UAE will maintain its strength and is expected to maintain its credit rating this year as liquidity stabilizes," said Mohammed Dumak, global head of Islamic finance and global ratings at S & P.

He predicted that banks in the UAE will achieve a growth rate of around 5% in 2019, stressing at the same time that the integration witnessed by the sector supports it and creates large entities capable of meeting the challenges.