Dubai is fast emerging as an attractive investment for real estate, and not without reason. Today many asset managers are rushing in to take advantage of the extraordinary growth in Dubai. Companies are also finding it lucrative to expand in areas like the Cayman Islands. Also with the region being mainly Islamic, Shariah-compliant investment funds have gained more significance. The private equity market has grown too, reporting a rise of 41 percent since 1998 with investments totaling $1 billion.
Moreover, things are only going to get better as the investment level is expected to more than double to $2.1 to $2.6 billion by 2007. Till now the scenario was different as most Middle East companies were investing outside the Middle East for over two decades. However with the Islamic religion becoming more tolerant of investment vehicles and the West becoming more versant with Islamic markets, things have improved.
All this has reflected results in the real estate market, with a phenomenal increase in infrastructure financing and a huge amount of real estate development in Dubai and other parts of the Middle East, particularly in the United Arab Emirates. Today over 30% of the world’s tower cranes are put on construction projects in Dubai, a statistic that says much about constructions here. Over 30 asset managers have opened shop in Dubai and most are recruiting lawyers too.