Property price falls 'draw investors to UAE'

The credit crunch does not appear to be putting off investors in the Middle East, one company has suggested.

Speaking as one of his firm's subsidiaries Anatara Resorts opened a new property in Liwa, Abu Dhabi, Minor Hotel Group chief operating officer Dilip Rajakarier indicated to Emirates Business 24/7 that the economic downturn is assisting those in the real estate sector.

"Investors are keen to invest in the future while property prices are down," he remarked.

The UAE economy will shrink by 0.8 per cent this year due to the effects of the global recession, according to a collection of forecasts assembled by the National.

However, a recovery is expected to begin next year, with Morgan Stanley publishing a report this week that suggests the worst may be over for the country.

How strong the upturn will be is dependent "on the momentum for global growth and the timely resolution of imbalances in its domestic property and credit markets", according to Mohammed Jaber, an analyst at the bank.