DOHA—A number of experts predicted that the coming period will witness growth in the real estate sector in the Gulf region in general, and in Qatar in particular, in light of the interest of the countries of the region in investing in infrastructure, high economic growth rates, and policies aimed at increasing urban growth, such as working to encourage tourism and open more labor markets and investment opportunities.

The first edition of the Qatar Real Estate Forum was launched this year under the slogan "Regulations and Legislation for an Optimal Quality of Life and a Sustainable Real Estate Industry", and it highlights the country's efforts and the great and tangible steps in supporting the real estate sector to be an investment destination, and promoting and encouraging a sustainable real estate industry, with the participation of more than 1500,<> participants from inside and outside Qatar.

At the forum, organized by the Qatari Ministry of Municipality from June 4 to 5 under the patronage of Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani, Prime Minister and Minister of Foreign Affairs of Qatar, experts said that the Gulf region has sufficient incentives to attract more investments to this important sector, which is linked to many business and development sectors in any country in the world, and is considered an indicator of economic growth.

During a speech at the opening of the forum, Qatari Minister of Municipality Abdullah bin Abdulaziz bin Turki Al-Subaie stressed that the future of the real estate sector in the Gulf is promising with its geographical diversity, large real estate production and easy access, in addition to the stability and security enjoyed by the GCC countries, pointing out that there are other motivating factors, including tourism plans, which are a tributary to real estate development.

The Minister of Municipality stressed that the real estate sector is one of the fastest growing sectors in Qatar, and ranks second only to the energy sector, attracting investments exceeding 82 billion riyals, equivalent to more than $ 23 billion during 2022, and launching 135 real estate projects during the same year.

Abdullah bin Hamad Al-Attiyah confirmed that the real estate sector is in continuous growth (Al Jazeera)

A sector that gets sick but does not die

In a session on foreseeing the future of the real estate sector, the CEO of Qatari Diar Real Estate Investment Company, Abdullah bin Hamad Al-Attiyah, stressed that the real estate sector is constantly growing, saying that "it is a sector that may get sick but does not die, and it is one of the best economic sectors for any country in the world."

He explained that Qatar and the rest of the world are racing to attract foreign investments to it, especially in the real estate sector, by providing various facilities, including those related to legislative facilities.

He stressed that for Qatar, the infrastructure it possesses has been designed to accommodate 5 million people, while the current population is about 2.7 million, which means the need to focus on the axes that contribute to increasing the population, including what the state is doing to encourage the tourism sector, as well as real estate ownership that was issued during the last period.

Regarding the future of Diar Real Estate Company's real estate investments abroad, Al-Attiyah said that political stability is the most important factor for investing in a region or country, explaining that the largest investment portfolios for the company are currently located in 4 countries: Qatar, the United States, Britain and the Arab Republic of Egypt.

He pointed out that attracting foreign investments in any country requires that the projects held in it be profitable, and that bureaucracy is eliminated and politics is separated from the economy, citing that Qatar, despite the political problems it has experienced during the past years, has respected its contracts.

He said that the volume of the company's investments inside and outside the State of Qatar amounts to about $ 60 billion in more than 27 countries around the world, pointing to the company's focus when choosing the projects it implements on projects that achieve profitability, and at the same time positively return to the place and environment in which it operates.

Reassurances to investors

For his part, Mana Al Mana, representative of the Qatari private sector in the forum – in a statement to Al Jazeera Net – said that the future of the real estate sector in Qatar is promising, especially after the decision of the Emir of Qatar Sheikh Tamim bin Hamad Al Thani to establish an authority to regulate and develop the sector, adding that the new legislation will give reassurances and insurance to foreign and local investors, and will contribute to the regulation of the real estate market through governance and implementation.

On the impact of global crises such as inflation and the US debt crisis, Al-Mana said that these effects have not yet ended despite the agreement to raise the US debt ceiling, and inflation is a global phenomenon and the product of political, natural and economic effects and some banking collapses, stressing that once these effects end, the matter will return to normal in the real estate market.

He pointed out that the successful real estate developer is the one who takes advantage of the challenges to start his investment projects, including, for example, at the present time, we find that bank interest rates are high, which is an obstacle for some to investments, and then the developer and real estate investor must be ready through the processing, planning and design of projects, and when these rates begin to decrease, he is ready to start implementation immediately.

Mana Al Mana: The establishment of the Real Estate Regulatory and Development Authority in Qatar is a boost to the prosperity of the sector (Al Jazeera)

Low population growth

The head of the Real Estate Club Center in Kuwait, Jassim Al-Fahd, said in a statement to Al Jazeera that the real estate sector in the Gulf region, although it is one of the promising sectors, is closely related to population growth in the region, as the real estate cycle may extend to 20 or 30 years, and therefore population growth is the basis for the recovery of the real estate sector, and it is necessary to work to open areas for tourism and projects that contribute to facing the challenge of low population growth.

He added that the GCC countries are working on several tracks to attract foreign investments to the region and open the way for an increase in visitors and an increase in markets and job opportunities, which is reflected in the increase in demand for real estate, and then the recovery of the sector.

He pointed out that real estate is the second industry after the oil and gas sector in the GCC countries, explaining that economic development in any country must be linked with the urban or real estate strategy, as the real estate sector is linked to all economic activities in any country, and it is a locomotive of development to be reckoned with due to the link of many other vital sectors to it.

During a session entitled "Future Directions of the Real Estate Sector", Mutlaq Al-Otaibi, Minister of Electricity, Water and Renewable Energy and Minister of State for Housing Affairs in the State of Kuwait, reviewed the diversity of services provided to the real estate sector in his country, explaining that people's needs in the past were limited to housing, but the matter has developed significantly and the need has become urgent for residential, administrative, commercial and investment areas, stressing the role of the state in providing customs, infrastructure, financial, security and legislative facilities to regulate this sector.

In the same context, Hamad bin Ali Al-Nizwani, Undersecretary of the Ministry of Housing and Urban Planning for Housing in the Sultanate of Oman, stressed the relationship of government plans and strategies for housing and their impact on the growth of the real estate sector, calling for the adoption of an attractive vision for foreign investments that keeps pace with urban development and the formation of real estate structure in line with transparency, governance and contribution to GDP.