oil cirses and Gulf real estate market

RELATION BETWEEN OIL CRISES AND GULF REAL ESTATE MARKET Oil prices inflation and market are correlated as oil prices up inflation follows in the same direction. CAUSES OF CORRELATION BETWEEN PETROL AND MARKET PRICES Oil sector's high contribution in the nation incomes of GCC countries: Kuwait Qatar Bahrain 64% 54% 28% Oil is a pivotal commodity supports many other industries starting from poultry and produce to transportation, construction, and industrial sectors. IMPACT OF OIL CRISES ON GULF REAL ESTATE MARKETS The first oil shock (1973) · Gulf and Arab states cut oil supplies off USA and some other countries • Oil prices rose from 3$ to 12$ per barrel Oil prices surge led to liquidity growth and rise in governmental expenditure • Properties prices rose by 200% in some areas • Prices exceeded 1000 SAR per square meter for the first time in KSA Oil counter-shock (1985) • Oil prices plunged by 45% between 1982 and 1985 to reach 10$ • Governments expenses shrank by 31% to decrease from 97 to 66 billion dollars · Real estate prices fell sharply • Non-oil sectors contribution in GCC national incomes rose from 34% in 1981 to 58% in 1982. The World Financial Crisis (2008) • Not mainly related to oil but had great influence on real estate Bahrain, Kuwait, and UAE were deeply impacted due to their linkage with international markets Properties prices in Bahrain fell by 15%, fell in UAE by 35% • Demand on properties in Gulf region fell by 30% • 52% of real estate projects stalled then in UAE which value 58 billion dirhams Oil price crisis (2014-2015) $. Price fell by 45% per barrel to drop from 115$ to 62$ Signs of recovery, high governmental expenditure, affordability of cash would ease its impact according to experts Properties deals value in 2015 Ql indicate gulf market stability: Bahrain deals Dubai deals Qatar value in Ql rose by 4% to reach 360 million BD value in QI rose by 4.6% to reach 17.4 witnessed growth in deals value during 2015 Q1 by 60% to reach 19.7 billion QAR compared to 12.3 billion billion BD compared to 344.4 million compared to 64 billion BD in 2014 Q1 BD in 2014 Q1 QAR in 2014 Q1. FOR YOUR FIRST-RATE PROPERTY NEEDS WEETAS.COM +973-34.185.186 OR +973-399.45.399 PHONE [email protected] EMAIL Weetas