Rents increase, foreign investment climbs along with investment in tech startups
UAE rent prices on the up
Dubai rental prices are increasing and likely to continue according to the latest REIDIN Dubai Residential Rent Index which recorded an increase of 11.62% over the past 12 months. With further rises of up to a 10% in the next 12 months, according to the research. They indicate that rents could further strengthen on the back of increased investment interest if Dubai’s bid for the World EXPO comes through in November this year. In Abu Dhabi, rents are on the up in sought after communities, including Saadiyat Island, up by 25% on two bedroom apartments. Researchers predict that rents in general will rise across the board by between 5% and 6% in the 4th quarter of this year.
Tech start ups funding grows
The findings of a report from Sindibad Business entitled Investment in Internet and Technology Startups in the Arab World states that UAE tech startups attracted an overall estimate of US$ 74 million from 2010 to 2012, the highest in the region. The report indicates the availability of investors, access to thousands of international businesses and a developed ICT society all contribute to making the UAE a compelling destination for entrepreneurship and new start-ups. As such, the number of tech entrepreneurs vying to convert their ideas to commercial entities in the region continues to grow year on year. The report in PDF format is here…
Foreign investment into the UAE almost doubles in two years
Foreign investors injected nearly US$ 9.6 billion in new capital into the UAE in 2012, the second largest recipient of foreign director investment (FDI) in the region after Saudi Arabia, according to official data from Inter-Arab Investment Guarantee Corporation (IAIGC). While FDI into Saudi Arabia declined in 2012, the UAE recorded an increase for the third consecutive year and was among the few regional countries to record high growth in FDI inflow last year. FDI into the UAE sharply fell to around US$ 5.5 billion in 2010 compared with previous highs and in line with an international trend in the wake of the 2008 global fiscal distress. But capital inflows rebounded to nearly US$ 7.67bn in 2011 and continued its recovery in 2012.