(Bloomberg) --
Saudi Arabia's property market could offer opportunities for investors even after the double whammy of lower oil prices and the coronavirus, according to the deputy Chief Executive Officer of Dubai-based Shuaa Capital PSC.
“There's still an immense opportunity for growth in that market,” Mustafa Kheriba said in an interview. “The opening up of the country will allow investors to deploy capital and make decent returns.”
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Saudi Arabia's economy is being battered by a slump in crude prices this year and from lockdown measures to prevent the spread of Covid-19. Saudi Binladin Group missed some salary payments in April and May as the construction giant reels under the impact of the pandemic and restructures about $15 billion of debt, people familiar with that matter said.
Shuaa -- created from a reverse merger with Abu Dhabi Financial Group -- operates Shuaa Saudi Arabia, which specializes in asset management, custody and advisory services. It also invests in hospitality real estate developments and mega residential projects in the kingdom.
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Kheriba also sees potential in Egypt for real estate, brokerage, asset management and insurance. The Arab world's most populous country “has very good purchasing power if the right idea and right opportunity arises,” he said.
Kheriba also said:
- In the United Arab Emirates, there is a lot of “upside from a real estate point of view. We see it from a demand perspective”
- However, for “pricing to come back to 2014 or possibly 2008 levels would be difficult because now the market has matured.”
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