Sector

March 2010

GCC Real Estate Sector Quarterly

Signs of recovery in Kuwaits residential segment
GCC Real Estate Sector 4Q2009

Economic Growth to benefit Qatars property sector

UAE market shows signs of stabilization, no recovery expected in 2010
New mortgage law stimulating demand in Saudi Arabia

In Bahrain, the increase in the supply of properties in the high end segment drove down prices
and rents. On the other hand, we expect demand for middle and low income housing to be
buoyant considering the supply shortage.

We expect prices in the residential segment in Kuwait to pick up in 2010. The segment is expected
to witness increases in the range of 10%-15% during 1H10 supported by available financing
through Shariaa compliant banks.

Omans economy is expected to grow by 3% in real terms in 2010 benefiting from high crude oil
prices and ongoing government spending. All sectors will benefit from this growth including real
estate and construction. Thus, the Omani construction industry is expected to hit OR1.57bn by
2013 with 2.7% annual increase.

Qatar Central Bank Governor announced that the economy shall experience real growth of about
16% in 2010. Accordingly, we expect the demand for real estate to pick up. This will help to
stabilize the real estate market through 1H2010 as we estimate rentals might have hit the bottom
without further steep declines expected.

The UAE market started to show some signs of stabilization in prices in H2 2009. During 4Q
2009, popular developments with proper amenities and infrastructure fared better than others.
However, with the new supply entering the market, we do not expect a market recovery in 2010.

The expected implementation of the mortgage law in Saudi Arabia this year could turn out to be
an important factor for the sector development. With housing demand expected to range between
1.0 to 1.5mn units over next 5years, we expect the real estate sector to continue its growth
trajectory at a steady pace with average annual rate of around 7% to 10% till 2014.

Value of Projects in the Gulf

US$ mn February 2010 February 2009 % change On-hold projects (Feb. 2010)
Bahrain 68,502 68,337 0.2% 13,113
Faisal Hasan, CFA
Kuwait 268,745 308,139 -12.8% 45,093
Head of Research Oman 106,022 108,773 -2.5% 6,560
fhasan@global.com.kw Qatar 220,315 223,494 -1.4% 9,837
Phone: +965-2295 1270 Saudi Arabia 653,641 629,174 3.9% 53,008
Abir G. Ahmed UAE 963,420 1,304,942 -26.2% 468,132
Assistant Vice President otal GCC 2,280,645 2,642,859 -13.7% 595,743
agouda@global.com.kw Source: MEED Projects
Phone: +965-22951272
The GCC region witnessed a y-o-y decline of 13.7% in the value of ongoing and announced
Walid S. Mohamed
Senior Financial Analyst projects at the end of February 2010 as per MEED projects data. UAE witnessed the largest
wsamir@global.com.kw decline of 26.2%. Kuwait followed with a 12.8% of decline while Oman declined by 2.5%. Saudi
Phone: +965-22951277 Arabia and Bahrain reported an increase of 3.9% and 0.2% respectively. The total value of on
hold projects stood at US$595.7bn. UAEs share of on hold projects stood at 78.6%, followed by
Mohammad Ali Shah Saudi Arabia and Kuwait at 8.9% and 7.6% respectively.
Financial Analyst
mashah@globalinv.com.sa
Phone: +966-1 2199966

1
 Sector
March 2010
Bahrain Real Estate Sector
4Q Highlights
Latest Development Impact
GCC Real Estate Sector 4Q2009

Bahrain government to build six housing

projects
Bahrains government announced its intention to construct
six new government housing projects in the Bahraini
Northern Governorate. The works on the projects are
expected to begin shortly.
The government has been recently keen on solving the
housing shortage for low and middle income segments of the
market. It also announced plans earlier to build around
50,000 low cost housing units by 2014. These
announcements are positive for the sector.

Performance
Average Monthly Office Rentals Average Monthly Retail Rentals
12 35

10 30

8 25
BD/sqm

BD/sqm
6 20

4 15

2 10

0 5
Diplomatic Seef Area Central Bahrain Al Moayyed 0
Area Manama Financial Tower
Average Retail Rate Seef Mall Bahrain City Center
Harbour
Source: Bahrain Ministry of Industry and Commerce
Source: Bahrain Ministry of Industry and Commerce

During 4Q 2009, demand remained sluggish in the office
market causing rents to soften. Prime office space in Seef
District, Diplomatic Area, and Bahrain Financial
Harbor still were able to command higher rental rates
ranging between BD10 and BD 12 per sqm.
The retail market remained resilient, supported by the
influx of Saudi population from the Saudi Causeway.
In addition, work on the Bahrain/Qatar causeway is
due to start in 2010 which is expected to provide
further support to the retail segment.

Apartment Monthly Rental Ranges (in BD)

200 350 500 650 800 950

Juffair 1BR

Central Manama 1BR

Juffair 2BR

Central Manama 2BR

Seef 2BR

Source: Bahrain Ministry of Industry and Commerce

The residential segment in Bahrain witnessed a mixed performance with subdued demand for the high
end segment and higher demand for middle and low income housing which is witnessing a supply
shortage. During 4Q 2009, there was no significant activity in the residential freehold market with few
signs of decline. There was a downward pressure on residential rents. However, in certain areas such as
Saar, Budaiya, and Janabiya, rents were more resilient.

2
 Global GCC Real Estate Quarterly

Market Forecast
Segment Future Trend Rationale
Residential ( High End) Downward The increase in the supply of properties targeting the
GCC Real Estate Sector 4Q2009
high end segment has put a downward pressure on
prices and rents. On the other hand, we expect
Middle/Low Income Housing Upward demand for middle and low income housing to be
buoyant considering the supply shortage.
Office Space Downward As demand remains subdued for the office market
in Bahrain, several projects are being delayed or
cancelled. A recent report by DTZ indicated that
270,000 sqm of planned office space were cancelled
over the last year.
Retail Stable The retail market in Bahrain is supported by the
traffic from the Saudi Causeway. Another
causeway linking Bahrain to Qatar is expected
soon.

3

GCC Real Estate Sector 4Q2009
Kuwait Real Estate Sector
4Q Highlights
Latest Development
Kuwait announced expansionary budget for
2010/2011
Preliminary figures for 2010/2011 budget were
announced with expected KD7.4bn of deficit. The
announced budget is expansionary one with total
expenditures expected at KD16.16bn, 33.4% of growth
over 2009/10 budgeted expenditures of KD12.12bn.
Kuwait approves KD30bn Development Plan
Kuwaiti National Assembly approved the development
plan up to 2013/14 the first plan since 1986. The
plan will help to revive the Kuwaiti economy facing
recessionary pressures since September 2008. The plan
approved with estimated KD30bn of spending focusing on
both oil and non oil economic sectors. The plan aims for
turning Kuwait into a regional trade and financial hub
through sustaining economic development, economic
diversification and GDP growth.
Talks regarding allowing expatriates to own
real estate in Kuwait
Five lawmakers have proposed to add a new article
three, to law number 74/1979 in respect of regulations
guiding ownership of properties by non-Kuwaitis. The
draft bill opens the door for expatriates and gives them the
right to own apartments not larger than 350 sqm.
Central Bank of Kuwait cuts discount rate
In a move towards boosting the non-oil sector and
supporting domestic liquidity and economic activity, the
Central Bank of Kuwait (CBK) cut its discount rate by
another 50 basis points on February 7th, 2010 to reach a
low of 2.5%, which was last seen in 2003. This was the
first cut entering 2010 and the seventh cut since January
2008. Thus, the CBK is seen to be continuing its ongoing
loose monetary policy to go hand in hand with the
expansionary fiscal policy. As per CBK governor the cut
will provide the necessary environment conducive to
boosting growth in non-oil sectors of national economy by
reducing the cost of lending.
Real Estate Financing
On monthly basis, extended credit facilities for real estate
sector continued its marginal monthly growth up to the end
of December 2009 reporting a new record level of
KD6.6bn, or a Y-o-Y growth of 10.6%. On the contrary
extended credit facilities for construction sector reported
marginal monthly declines this year retreating by 2.5% on
a Y-o-Y basis reaching KD1.6bn. Extended facilities for
both sectors accounted for 32.8% of total credit facilities by
the end of December 2009.
Global GCC Real Estate Quarterly
Impact
The budget is focused on capital expenditures to account for
mega projects announced within the Kuwait Development
Plan 2013/14. The government approved the allocation of
KD4.78bn for development spending within the first year
(2010/11) as a part of the 5 years plan to stimulate
growth. Thus we foresee real estate sector will benefit from
such capital expenditures in case it is really implemented.
The plan includes lots of Mega Projects that will have its
impact on the real estate sector as well as the whole
economy. Mega projects announced include, the new business
hub (Silk City) with estimated cost US$77bn, railway and
metro system, additional spending on new cities,
infrastructure and services particularly health and education
in addition to oil sector investments.
We foresee that in case of actual implementation lots of
hopes are set to come true. The real estate sector especially,
residential segment will benefit as housing problems are set
to be solved with the establishment of new cities.
We believe it will not be approved or implemented easily.
Such bill is expected to create a new market for extra
demand especially by expatriates. However, the trade off
will always be to invest in real estate market in Kuwait as
compared to Dubai that is seen as more attractive.
If approved, such bill will have its impact on the real estate
market, however, being successful doing so is directly related
to the amendment of other laws and regulation governing
real estate market, residency and sponsoring issues. Other
issues to tackle are the current problems of real estate
market in Kuwait, most important is to foresee the actual
role of Real Estate Regulatory Authority as in Dubai. If
such role is clear and validated, the proposed bill might be
implemented successfully.
We believe real estate sector will benefit from such rate cut
especially residential segment in case new credit lines are
available at lower rates. The availability of liquidity for the
sector will improve the activity whether on the transaction or
the construction levels. The decision will give another push
to the sector especially after Kuwait Finance House (KFH)
and similarly all Islamic banks were exempted from Laws
8 & 9 regulations that prevent banks and companies from
dealing in residential real estate whether by trading or
mortgaging.
Looking forward, we expect credit facilities extended to
both sectors to pick up slightly after the new discount rate
cut that followed the decision allowing mortgaging for
residential real estate by Sharia compliant banks.
4
 Global GCC Real Estate Quarterly

Performance
After a period of fading performance since last year and up to the end of 3Q09, real estate sector started
to show signs of slight recovering by 4Q09 especially for the residential segment. However, the full year
performance is still negatively impacted due to the good performance of 1H08. Total units sold for the
GCC Real Estate Sector 4Q2009
year 2009 reported 25.8% of decline reaching 4,586 units down from 6,180 units during 2008. Residential
segment was much more impacted retreating by 27.5% as compared with 21.0% decline in Apartments &
Commercial segment. Similarly, average price per transaction for the year 2009 reported 15.8% of decline
reaching KD700,000/transaction down from KD832,000/transaction during 2008. Residential segment
retreated by 2.0% as compared with 20.3% decline in Apartments & Commercial segment.

Number of Real Estate Transactions Number of Real Estate Transactions Y-o-Y

000'units 000'units Growth
747

174
200 800 90%
167
167
162

180 700

127
132
70%

134
522

130
160

126

128
121
127

476
600
711

108
114

163
140 50%
102

379

78%
500

94
120

89

15%
85
100 400 30%

43%
37%
68
427

11%
482

106
54

6%

6%

9%
80
99

300 10%
92

341
334

60

307
280
200
280
265

280
256

246
10%

36%
231

40

3%
231
237

4%

6%
46%
205

100
179
157
155

20

64%

16%
66%
169

68%
30%

20%

24%
0 0

29%
33%

33%

35%
Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov 50%

55%
70%
2008 2009
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Apartments & Commercial Residential Property (sec. axis) ResidentialProperty Apartments&Commercial

Source: Ministry of Justice & Global Research

Source: Ministry of Justice & Global Research

On Monthly basis, total number of transitions reported Real estate transactions continued the declining trend up
7.4% of growth by the end of December 2009 standing at to the end of 3Q09. However, since October 2009 real
582 units as compared to 542 units sold last month. estate transactions started to pick up especially for
Residential segment increased by 25.6% while apartments residential units. By the end of December 2009
& commercial segment retreated by 35.0%. residential units sold increased by 42.5% Y-o-Y.

Average Price/Trans Average Price/Trans Y-o-Y Growth

000'KD/trans 000'KD/trans 90%
941
905

1,000 300

89%
242

827

70%
233

231

900
220
738

215
212

207

250
206

204

198

800
193
193

192
647

50%
189
188
188

185
182

179

55%
49%

23%
700 200
221
216

726

30%
701

600
205
202

35%
8%
648
637

12%
622

620
615

500 150 10%

507

400
472
129

444

439

100
4%

7%

10%
417

32%
415

2%
404

2%

300
394

394

4%
387

7%

8%
8%
329

13%
45%
317

45%

46%
14%
46%

200 30%
20%

50
100
62%

0 0 50%
Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov 70%

2008 2009 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
ResidentialProperty Apartments&Commercial
Apartments & Commercial Residential Property (sec. axis)

Source: Ministry of Justice & Global Research Source: Ministry of Justice & Global Research

On monthly basis, residential segment continued to report Average price per transaction continued to decline for
signs of marginal recovery up to November 2009. 9M09. However, 4Q09 started to report signs of
However, it retreated by 10.5% in December 2009 to recovery. December 2009 witnessed a huge increase in
report KD207,000/transaction. Similarly, apartments apartments & commercial segment increasing by
& commercial segment retreated by 4.3% to report 88.6% Y-o-Y. However, residential property continued
KD620,000/transaction by the end of December 2009. its declining trend retreating by 2.4% Y-o-Y.

5
 Global GCC Real Estate Quarterly

Residential Segment
After following a declining trend since 2Q08 and up to 1Q09, residential land prices are finally showing
signs of recovery for 3Q09 and 4Q09. The recovery is directly linked to the abolition of laws 8 & 9 for
2008 thus backing the residential segment. In addition better views regarding the economic performance
GCC Real Estate Sector 4Q2009
in general and more stabilized oil prices supported the good sentiments. Moreover, areas like Maseelah,
Al Funaytees and Abu Fateera witnessed higher prices due to Cabinets decisions to allow construction
permits in these areas. Generally, prices picked up in the range of 3% during 3Q09, however, areas in
Hawally and Farwaniyah reported higher price increases in the range of 4% to 8%. Moving forward,
4Q09 prices kept the positive pace, however reporting higher growth rates.

Residential Land Prices by Area Residential Land Prices by Area

KD/m2 KD/m2
800 450
700 400
600 350
500 300
400 250
200
300
150
200
100
100 50

1Q08
2Q08
3Q08
4Q08
1Q09
2Q09
3Q09
4Q09

1Q08
2Q08
3Q08
4Q08
1Q09
2Q09
3Q09
4Q09

1Q08
2Q08
3Q08
4Q08
1Q09
2Q09
3Q09
4Q09

1Q08
2Q08
3Q08
4Q08
1Q09
2Q09
3Q09
4Q09

1Q08
2Q08
3Q08
4Q08
1Q09
2Q09
3Q09
4Q09

1Q08
2Q08
3Q08
4Q08
1Q09
2Q09
3Q09
4Q09
Kuwait(Capital) Hawally Farwaniyah MubarakAlKabeer Ahmadi Jahra
Source: Kuwait Finance House Source: Kuwait Finance House

On a Q-0-Q front, the upward trend since 2Q09
continued in 4Q09, with prices in Kuwait (Capital),
Farwaniyah & Hawally growing by 6.3%, 4.1% and
0.6% respectively. However, on a Y-o-Y basis, prices still
reflect marginal declines. Hawally continued to report the
largest decline of 12.9% with prices reaching KD525/m2
down from KD603/m2.
On a Q-0-Q front, Jahra reported the largest growth of
31.1% with KD328/m2 average price. Mubarak Al
Kabeer & Ahmadi followed with 7.5% and 0.6% of
growth respectively. On a Y-o-Y basis, prices reflect a
sort of stabilization of 0.8% for Mubarak Al Kabeer
and 40% growth for Jahra while Ahmadi reported
5.6% of decline.

Investment Segment
After following a declining trend since the eruption of the financial crisis, investment properties
continued the fading performance during 4Q09. However, rentals are showing a sort of stagnation after
the declining trend during 1H09 when rentals declined in the range of 2% to 10%. Currently investment
properties rentals are showing a sort of stagnation in prime locations. However, other areas like Kheitan
and Farwaniya reported slight increases. This can be traced back to reshuffling demand moving from
high end to medium and lower class segments.

Investment Property Rentals Investment Property Rentals

KD/month KD/month

400 400

350 350
300 300
250 250
200 200
150 150
100 100
50 50

2Q08
3Q08
4Q08
1Q09
2Q09
3Q09
4Q09

2Q08
3Q08
4Q08
1Q09
2Q09
3Q09
4Q09

2Q08
3Q08
4Q08
1Q09
2Q09
3Q09
4Q09

2Q08
3Q08
4Q08
1Q09
2Q09
3Q09
4Q09
2Q08
3Q08
4Q08
1Q09
2Q09
3Q09
4Q09

2Q08
3Q08
4Q08
1Q09
2Q09
3Q09
4Q09

2Q08
3Q08
4Q08
1Q09
2Q09
3Q09
4Q09

2Q08
3Q08
4Q08
1Q09
2Q09
3Q09
4Q09

BneidAlGar Kheitan Farwaniya AlJahra

Salmiya Hawally Jaberiya Sharq

3bed Highclass2bed 3bed Highclass2bed

Source: Kuwait Finance House Source: Kuwait Finance House

Areas like Salmiya, Hawally & Jaberiya witnessed a sort
of stagnation during 4Q09 with rentals unchanged from
previous quarter. Sharq area reported 3% decline in high
class 2-bedroom rentals from KD330/month to
KD320/month during 4Q09.
Areas like Kheitan & Farwaniya reported higher
rentals of 9.1% & 6.7% for high class 2-bedroom. In
Kheitan, average rentals stood at KD240/month during
4Q09 up from KD220/month during 9M09.
Similarly, Farwaniya rentals stood at KD240/month
up from KD225/month over the same period.
6
 Global GCC Real Estate Quarterly

Commercial Segment
Similar to investment properties rentals, commercial properties rentals are showing some stability during
4Q09 as compared to the sharp decline reported during 9M09. The segment activity is mainly related to
the business cycle and the overall economic sentiment. As a result, rentals for both office and retail
GCC Real Estate Sector 4Q2009
properties declined sharply during 9M09. This was linked to the declining purchasing power for residents
whether Kuwaitis or expatriates. Moreover, demand for office space declined with the economic
downturn.

Commercial Property Rentals and Growth

KD/m2
40
35 25%

30 15%
25
5%
20
15 5%
10
15%
5
0 25%
1Q08
2Q08
3Q08
4Q08
1Q09
2Q09
3Q09
4Q09

1Q08
2Q08
3Q08
4Q08
1Q09
2Q09
3Q09
4Q09

1Q08
2Q08
3Q08
4Q08
1Q09
2Q09
3Q09
4Q09

1Q08
2Q08
3Q08
4Q08
1Q09
2Q09
3Q09
4Q09
Farwaniya KuwaitCity Salmiya Hawally
Retail Office Retailgrowth Officegrowth

Source: Kuwait Finance House

After reporting sharp decline during 1H09, commercial properties rentals are showing slight stability for
both retail and office properties during 4Q09. Rentals for retail properties stagnated for Farwaniya and
Kuwait city, however, some areas in Salmiya and Hawally reported higher rentals in the range of 5% to
10%. Average retail rentals in Salmiya stood at KD25/m2 during 4Q09 up from KD20/m2 during 3Q09.
However, it is important to note that on Y-o-Y basis rentals are still reporting a decline in the range of
15% to 20%. Office space rentals are not showing the same stability for prime locations in Kuwait City
where rentals declined by 15% on average to reach a range of KD6-7/m2. Finally, office space in other
areas like Farwaniya, Salmiya & Hawally stagnated at 3Q09 levels.

Market Forecast
Segment Future Trend Rationale
Residential Upward We expect residential sector to witness a gradual pick up
in prices as signs of recovery are showing for 2010.
According to market experts the year 2010 is likely to b
e the real get up year in the real estate market especially
with the trend adopted by the government to launch giant
development projects in a move which would stimulate all
sectors including real estate as the first beneficiary especially
residential segment. Moving forward, the residential
segment is expected to witness price increases in the range
of 10%-15% during 1H10 supported by available
financing through Shariaa compliant banks. Generally,
residential real estate segment will continue to play the
major role in real estate activity. The ongoing population
growth among Kuwaiti nationals will continue to depict an
under supplied market.
Investment (Apartments) Downward We still hold our downward view regarding investment
segment for the short to medium terms. The segment is
expected to go through a stagnation period for the short
term before starting another wave of declines towards the
summer vacation season that will be coupled with the
delivery of new supply. The ongoing construction activity
has lead to increasing supply that will not be matched with
increasing demand in the next period. Thus rentals might
dip in the range of 5% to 10% especially for medium &

7

GCC Real Estate Sector 4Q2009
Commercial (Retail & Office) Downward
Global GCC Real Estate Quarterly
upper classes, respectively, due to increased vacancy rates.
Looking forward, a rapid recovery for the segment is not
expected, however, any recovery will be linked to the
implementation of announced government plans aiming for
reviving the overall economic growth. Consequently this will
be linked to increased demand on expatriates labor force.
Only at this time investment segment might pick up.
We still hold our downward view regarding the commercial
segment. Rentals are expected to stagnate at current levels
in different areas with more tendency to decline during
1H2010. Moreover, the delivery of new supply will be
exerting more downward pressures on rentals for both
retail and office space. Thus, any recovery will be directly
linked to economic activity and signs of positive growth.
Thus any real pick up for the segment would not be seen
before the end of 2010 or 1H11.
8
 Global GCC Real Estate Quarterly

Oman Real Estate Sector

GCC Real Estate Sector 4Q2009
4Q Highlights
Latest Development
Real GDP growth seen at 3% in 2010
Omani economy is expected to grow by 3% in real terms
in 2010 benefiting from high crude oil prices in the range
of US$70-80/b- and ongoing government spending in the
final year of the seventh -five year development plan- as per
Ministry of National Economy. Moreover, economic
performance is expected to be bolstered by higher tourist
arrivals and increased foreign direct investment.
New Income Tax Law removes ambiguity
Oman began implementing new income tax law for
corporates under which a uniform tax rate of 12% on the
taxable income after granting a basic exemption of
OR30,000 to all entities carrying business in Oman
irrespective of their status, residence, nationality or mode of
operation. Foreign branches that were previously taxed at
30% no profits in excess of OR100,000 would now pay
a tax of 12% on excess profits.
Impact
All sectors will benefit from this growth including real estate
and construction. This is mainly as the government will
continue to spend on infrastructure projects aiming for
diversifying the economy. Moving forward, Omani
construction industry is expected to hit OR1.57bn by 2013
with 2.7% annual increase as per Business Monitor
International.
The newly implemented income tax law put to rest any
ambiguity and will create a level playing field for all
coroporates irrespective of nationality. Thus it will spur
foreign investment and encourage foreign companies to
operate through a branch rather than through a locally
incorporated company. The increased business supported by
economic growth will consequently support demand for real
estate.

Performance
Like other GCC countries, Oman witnessed considerable growth in its real estate sector prior to the
global financial crisis. However, the year 2009 witnessed a sort of stagnation in real estate contribution to
GDP. As indicated by Ministry of National Economy, the sector continued to grow at marginal rates of
1.1%, 0.3% and 0.4% for the first three quarters respectively. This was reflected on the trading activity
that dropped by 53% reaching OR1.19bn in 2009. This figure is to be compared with OR2.5bn of trading
activity in 2008.

However, despite the decline in the trading activity, the crisis had little effect on residential prices and
rentals. Both prices and rentals are showing some stability in general with tendency to increase in prime
locations in the range of 10% to 15% during 2009. According to the ministry of national Economy, the
price index for rent stood at 138.6 for the year 2009 compared to 124.4 in 2008, or 11.4% growth.

Average Residential Rentals Average Residential Sales Prices

OR/Sqm
OR/Sqm
8 1,600
7 1,400
6 1,200
5
1,000
4
800
3
600
2
400
1
200
-

Ghala Madinat Sultan Al Ghubra North
Qaboos 2BDApt 3BDApt 3BDVilla 4BDVilla 5BDVilla
Source: ERA Oman
Source: ERA Oman

On the rentals front, there were rumors that residential rentals will decline drastically due to the financial
crisis and expatriates leaving the country due to recessionary pressures. However, this did not happen due
to the stable economic performance. Moreover, the country witnessed a sort of shifting of headquarters
of many business houses towards Oman from other GCC countries. Such trend had its impact on rentals
that started to pick up significantly especially in prime locations with a new element of quarterly payment
of rents added to it.

9
 Global GCC Real Estate Quarterly
Rentals for two bedroom apartments were in the range of OR450 RO850/ month in Al Ghubra,
Qurum, Azaiba and Al Khuwair depending on total area and quality. Sale prices, on the other hand,
GCC Real Estate Sector 4Q2009 average around OR580/sqm, while reaching more than OR1100/sqm in high end residential areas.

Average Monthly Office Rental Rates Performance of Hotel Industry

(YoY Growth)
OR/sqm 70%
12
60%
10
50%
8 40%
6 30%

4 20%
10%
2
0%
0
10%
Al Qurum Gubrah Ghala AlSeeb AlHail
Khuwair North 5StarRev 5Star 4StarRev 4Star
Occupany Occupancy
Q3 Q4 Q22009 Q32009 Q42009
Source: Ministry of National Economy,

4Q09 rentals almost stagnated at last quarter levels. The
majority of office space is concentrated around Muscat
where average monthly office rents are currently between
OR7-10 per sqm. However, as Muscat is getting
increasingly congested, the growth is now happening in
Qurum Commercial Center, Khuwair, and Azaiba.
The hospitality sector is still impacted by the financial
crisis. However, it started to show signs of marginal
recovery by 3Q09 and 4Q09 as compared to previous
quarters. Five star hotels occupancy rates reached
34.4% and 62.7% for 3Q09 and 4Q09 respectively.
Likewise, four star hotels occupancy rates were at
44.1% and 60.7% for the same period.

Market Forecast
Segment Future Trend Rationale
Residential Stable Demand in Oman has been to a great extent
endogenous. The population in Oman is growing, at
an average annual rate of 2%. Moreover, around
43% of Omanis are under the age of 14 indicating
the increasing residential demand over the medium
term. Thus, industry sources estimates that 20,000
to 25,000 units are needed over the next few years
to keep up with increasing demand. Thus we still
hold our stable view for the segment.
Office Space Stable We still hold our stable view for the segment for the
short term. We expect a flattening demand in
2010 with marginal tendency to pick up towards
the end of the year depending on actual economic
performance. On a longer term, it might witness a
correction with the delivery of 200,000 sqm of office
space in Muscat by 2012, predominantly located in
Azaiba Business Park and Al Qurum City
Centre. Matching such supply with increased
demand will be linked to economic performance.
Hospitality Downward We still hold our negative view for the hospitality
segment for 2010 as the world economy did not
recover the recessionary pressures completely. On the
demand front, we still see a decline in tourists
visiting Oman in the medium term through 2011
as more than 40% of Omans tourist count is from
US, UK and other developed economies. On the
supply front, the major projects in Muscat are
expected to add about 5,500 rooms to the already
existing 4 and 5-star rooms through 2012 leading
to an oversupply.
10

GCC Real Estate Sector 4Q2009
Global GCC Real Estate Quarterly
Qatar Real Estate Sector
4Q Highlights
Latest Development Impact
Economic growth at 16% in 2010.
Central Bank Governor announced that Qatari economy Generally, the higher economic growth will be linked to
grew by 9% in 2009 and shall experience real growth of increased business activity. Consequently demand for
about 16% in 2010, fueled by ongoing investment in expatriates labor force will increase and thus real estate
hydrocarbons especially the production of natural gas. In demand will pick up for all segments office, residential and
a related development, Qatars Prime Minister announced retail to match with increased supply.
that 2010-2011 budget will be expansionary one. It will
be the largest ever based on an oil price ranging between
US450 to 55/b. The budget aim is to stimulate and
complete existing infrastructure projects with new giant
projects will also be announced.
Emir approves law on 100% foreign capital.
The Emir H H Sheikh Hamad bin Khalifa Al Thani The amendment aims to attract more foreign investment to
issued Law No. (1) of 2010 amending some key the country. Moreover, as an investment incentive foreign
provisions of Law No. (13) of 2000 regulating the investors may take real estate on long-term lease for the
investment of non-Qatari capital in key economic sectors. purpose of conducting their business. The lease period is for
The amendments specify the additional fields in which the 50 years and renewable. Such amendment will have positive
Minister of Business and Trade may permit foreign impact on real estate sector as the increased inflow of foreign
investors to have equity stake beyond 49% up to 100%. investment will create more demand on real estate especially
The sectors included are: consultancy services, information office and residential segments.
technology, services related to sports, culture and
entertainment and distribution services.
Amendments to rent law no 4 of 2008. Such move will not have a great impact on lifting rentals
The Emir H H Sheikh Hamad Bin Khalifa Al Thani considerably. However, we still foresee that the basic supply
ratified Law No. (2) of 2010, amending Law No. (4) of demand fundamentals will govern rental hikes. Thus
2008. The new rent law retains most of the provisions of landlords will not be totally free to raise rents on residential
the 2008 legislation except that landlords will now be free properties on their whims and fancies as tenants are in a
to raise rents of residential properties. The law however, position to haggle and insist that landlords reduce the rent.
freezes the rents of shops and other commercial premises for Finally, current demand supply conditions will help to
one more year until February 2011. reflect real rentals and thus avoid speculative actions.
Performance
Qatar real estate sector reported a declining trend during 2009 after reaching record highs during the
boom period last three years. The impact of the financial crisis and economic slowdown was reflected on
real estate sectors in the region during 2009 and Qatar was not an exception. However, currently Qatari
real estate sector is showing signs of stabilization and recovery is not expected before 2H2010.
Apartments Resale Prices Apartments Resale Prices
QR/m2 QR/m2
26,000 25,000
23,000
20,000
20,000
17,000 15,000
14,000
10,000
11,000
8,000 5,000
5,000
4Q08
1Q09
4Q09
4Q08
1Q09
4Q09
4Q08
4Q08
1Q09
4Q09
2Q09*
3Q09*
2Q09*
3Q09*
1Q09*
2Q09*
3Q09*
4Q09*
2Q09*
3Q09*
4Q08
1Q09
4Q09
4Q08
1Q09
2Q09
2Q09*
3Q09*
3Q09*
4Q09*
PortoArabia VivaBahriya QanatQuartier Pearlaverage
WestBay Lusail
Low High Average Low High Average
* Estimates * Estimates
Source: Asteco& Global Research Source: Asteco & Global Research
Pearl is the first project offering ownership by foreigners in Other prime locations like Lusail and West Bay
Qatar. On Y-o-Y basis, 4Q09 reported average decline witnessed the same declining trend during 2009. On Y-
in apartments resale prices by more than 20% mainly o-Y basis, prices declined by 35% and 11.5% on
11
 Global GCC Real Estate Quarterly
due to stress selling. Generally, Porto Arabia reported the average in Lusail and West bay respectively by the end
largest Y-o-Y declines by the end of 4Q09 retreating by of 4Q09. On quarterly basis, industry sources are
29.4% while Viva Bahriya retreated by 18.2%. On indicating 4Q09 prices are showing signs of
quarterly basis, 4Q09 witnessed marginal declines of stabilization at the same level as 3Q09 with marginal
GCC Real Estate Sector 4Q2009
2.8% as compared to 3Q09 resale prices. declines in some locations.

Generally, residential segment reported average declines in prices of more than 30% by 4Q09 on Y-oY
basis, as compared with 2008 peak levels. The major declines were almost seen in prime locations and
projects like Pearl, West Bay and Lusail. On the sales front, 2009 witnessed a lower activity on the off-
plan projects with transactions more active in the secondary market. Thus, by the end of 4Q09 asking
prices almost stagnated at the same level as 3Q09 with developers trying to hold their prices while
repackaging payment terms with lower deposit payments. Secondary market especially for Pearl project
and West Bay started to stabilize at 3Q09 levels with marginal declines. Comparing both markets
reported a discount of more than 25% for secondary market prices as compared to primary prices. This is
mainly as owners of projects approaching handover are able to offer their units at prices much lower than
developers asking prices while realizing gains on their investments.

Average Apartments Rentals Average Apartments Rentals

QR/m QR/m
12,000 10,000
10,000 9,000
8,000
8,000 7,000
6,000 6,000
5,000
4,000 4,000
2,000 3,000
0 2,000
1,000
4Q08

1Q09

4Q09

4Q08

1Q09

4Q09

4Q08

1Q09

4Q09
2Q09*

3Q09*

2Q09*

3Q09*

2Q09*

3Q09*
0

4Q08

1Q09

4Q09

4Q08

1Q09

4Q09

4Q08

1Q09

4Q09
2Q09*

3Q09*

2Q09*

3Q09*

2Q09*

3Q09*
AlSaad BinMahmoud AlMuntazah Najma AlMaamoura BinOmran
Low High Average Low High Average

* Estimates * Estimates
Source: Asteco & Global Research Source: Asteco & Global Research

By the end of 4Q09, average rentals continued the Other older residential districts witnessed the same
declining trend. On Y-o-Y basis, Al Muntazah area declining trend due to lower demand in such areas. That
declined the most by 40% as average rentals reached was mainly due to shifting interest toward new projects
QR5,500/m. Bin Mahmoud area reported 38% of approaching completion that were available at
annual decline with rentals in the range of QR4,500/m convenient rentals compared to services and amenities
to QR6,000/m. Rentals in Al Saad area reported lower provided. On Y-o-Y basis, rentals in Najma declined
annual declines in the range of 20% as demand from by 38% followed by Al Maamoura and Bin Omran
expatriates is more due to proximity to commercial declining by more than 25% each.
facilities.

Average Apartments Rentals

QR/m
30,000
25,000
20,000
15,000
10,000
5,000
0
2Q09*

3Q09*
4Q08

1Q09

4Q09

2Q09

3Q09

4Q09

WestBay PortoArabia
Low High Average

* Estimates
Source: Asteco & Global Research

Rentals in new residential districts such as West Bay and Pearl were more stable due to shifting demand
by expatriates to relocate in such areas. As a result rentals declined at lower rates compared to other old
districts. On Y-o-Y basis, rentals declined in the range of 15% to 25% in Porto Arabia and West Bay
respectively by the end of 4Q09.
12
 Global GCC Real Estate Quarterly

Average Villas Rentals Average Villas Rentals

QR/m QR/m
22,000 40,000
GCC Real Estate Sector 4Q2009
20,000 35,000
18,000 30,000
16,000 25,000
14,000 20,000
12,000 15,000
10,000 10,000

2Q09*

3Q09*

2Q09*
4Q08

1Q09

4Q09

4Q08

1Q09

3Q09

4Q09
1Q09*

2Q09*

3Q09*

1Q09*

2Q09*

3Q09*

1Q09*

2Q09*

3Q09*
4Q08

4Q09

4Q08

4Q09

4Q08

4Q09
Dafna AbuHamour/AinKhaled AlHilal WestBay WestBayLagoon
Low High Average Low High Average

* Estimates * Estimates
Source: Asteco & Global Research Source: Asteco & Global Research

On a Q-0-Q front, villa rentals in older districts are Rentals in new projects were more impacted as rentals
showing signs of stabilization during 3Q09 and 4Q09 reached speculative levels during 2008. Thus by the end
with marginal increases in some locations. Thus it seems of 4Q09, Y-o-Y declines reported in prime locations
that rentals already hit the bottom. On Y-o-Y basis, were steep in the range of 25% to 30% for West Bay
rentals in Al Hilal area are showing 6.7% decline by the Lagoon and West Bay respectively. However, we foresee
end of 4Q09 while rentals in Dafna are showing 17.1% that current rentals almost hit the bottom with no
of growth for the same period. expectations for further steep corrections.

Average Office Rentals

QR/m2/m
300
250
200
150
100
50
0
1Q09*

2Q09*

3Q09*

4Q09*

1Q09*

2Q09*

3Q09*

4Q09*

1Q09*

3Q09*

4Q09*
4Q08

4Q08

4Q08

2Q09
Cringroad Dringroad WestBay
Low High Average

* Estimates
Source: Asteco & Global Research

Office rentals in older business district were impacted more as compared with new business district or
grade A office space in Diplomatic district. This was due to the dual impact of financial crises and
declining demand as business is relocating in new business district such as West Bay due to the
availability of smart buildings with services and facilities. By the end of 4Q09, office space rentals in C &
D ring road reported Y-o-Y declines of almost 40% each reaching an average of QR130 to
QR150/m2/m. This is to be compared with average rentals of QR210 to QR250/m2/m during 4Q08.
Similarly, rentals in new business district reported Y-o-Y declines however at lower rate of 20% on
average reaching QR180 to QR220/m2/m by the end of 4Q09.

Market Forecast
Segment Future Trend Rationale
Residential (Mid class Stable We foresee that rentals might have hit the bottom to
Apartments) stabilize through 1H2010 without further steep
declines. On the supply front, residential mid class
apartments will continue to be under supplied as
almost all projects approaching delivery are
concentrated in the upper class. Thus rentals will
maintain their levels for the short to medium terms
with a potential of growth in the longer term
depending on overall economic conditions in
addition to population demographics.
13
 Global GCC Real Estate Quarterly
Residential (Upper class Stable We foresee that current rentals almost hit the
Apartments & Villas) bottom with no expectations for further steep
correction. Thus our view is stable for the short
term. However, over the longer term, the ongoing
GCC Real Estate Sector 4Q2009
delivery of new projects & units will lead to
increasing supply at a higher rate than increased
demand, thus rentals might go through another
wave of corrections. This will depend mainly on
economic performance and business activity.
Office space Downward Rentals are expected to witness further declines in
the medium term due to the delivery of new supply
and increased vacancy rates. Currently, office space
average occupancy rates are estimated at 85% to
90%. On the supply side, it is estimated that
around 350,000 sqm of additional grade A office
supply were delivered by 4Q09. Consequently,
rental rates are estimated to witness further declines
if such supply is not matched with increased
demand which will depend mainly on overall
economic conditions during the course of 2010.
However, it is important to note that rentals in
older business district might witness further declines
in the short term due to shifting or relocating from
older business district to new prime locations.

14
 Global GCC Real Estate Quarterly

KSA Real Estate Sector

4Q Highlights
GCC Real Estate Sector 4Q2009
Latest Development
Heightening anticipation for mortgage law
As per recent statement by some government officials, the
long-awaited mortgage law could be implemented as early
as in next few months. It is expected to be a historic move
for the development of real estate financing landscape in the
Kingdom as the financial institutions eagerly wait to
capture larger pie of mortgage industry that currently
stands at 1.5% of GDP. Besides the business
development of financial institutions, the heightened real
estate activity will also lead to higher ancillary business
(cement, insurance, etc.)
Impact
The law once enacted will allow a wider access to property
ownership rights and details about overall regulatory
framework. The real estate financing currently dominated
by REDF facilities is expected to be actively joined by other
financial institutions (banks) especially after getting further
clarity through mortgage law on the right of financial
institutions in case of clients default. In addition to
expansion of the banks credit portfolio, the mortgage law
will also provide an opportunity to diversify the bank
balance sheets.

Performance
Riyadh Residential Rates Jeddah Residential Rates

2,500 2,750
2,250 2,500
2,000 2,250
2,000
1,750
(SR /sqm /pa)
(SR /sqm /pa)

1,750
1,500
1,500
1,250 1,250
1,000 1,000
750 750
500 500
250 250
0 0
Rental price avg. Sales price avg. Rental price avg. Sales price avg.

Villas Apartments Villas Apartments

The residential rates in Riyadh are expected to have
remained somewhat consistent as compared to 3Q2009,
while in Jeddah both the rental and sales prices of
residential units have witnessed a rising trend. The
indication of immediate increase of residential prices in
Jeddah can mainly be linked to unfortunate event of
flooding witnessed by the city in 4Q09. Although the
government has been keeping a close check to control any
exploitation because of high property prices, the demand
supply situation can only be managed to certain extent.
Many residents in the south and east of the city and areas
which were greatly affected by flooding preferred to move to
the safer areas. In Jeddah, overall the prices were high in
the areas that were at an elevation (due to lower chances
of being affected by any future rains), while the low-lying
areas experienced drop in property prices. The government
near future plan is reported to build around 8,000
housing units to fulfill immediate demand in the more
acute shortage areas of the country. Overall, KSA real
estate financing activity that has consistently grown during
the past years is expected to continue on the growth
trajectory led by housing demand by fast growing
population.

15
 Global GCC Real Estate Quarterly

KSA Real estate financing activity

GCC Real Estate Sector 4Q2009 100,000

90,000
80,000

(SR mn)
70,000
60,000
50,000
40,000
2001 2002 2003 2004 2005 2006 2007 2008 2009e
REDF
Source: SAMA & Global Research

The governments Real Estate Development Fund has been trying to fulfill the public housing needs
(esp. low income category). REDF loans recorded an average annual growth of 3% since 2006. REDF
outstanding loans estimated at around SR78bn in 2009 constitute more than 80% of the real estate
financing activity in the Kingdom. Although the banks have been continuously trying to capture greater
market share of the real estate financing (recording an average 2006-09 annual growth of 7%), the new
mortgage law is expected to provide the real impetus. The real estate finance currently constituting 10%
of total consumer banking loans, offer attractive potential for future growth.

Market Forecast
Segment Future Trend Rationale
Residential Upward With around 50% of households living in owner-
occupied units, there is consistent demand for
housing supply and financing. The housing demand
is expected to range between 1.0 to 1.5mn units till
2015. The market interest dominated by domestic
buyers (with 60% population under the age of 30)
also reflects robust demand fundamentals.
Office Space Downward KSA office space of around 7.0mn sqm augmented
and modernized by projects like King Abdullah
Financial District (over an area of 1.6mn sqm) is
expected to grow by 15% to 20% over next 5years.
With focus on providing high quality environment,
cities like Riyadh & Jeddah have pockets of old
structures that remain un-demanded. Although the
government has been actively working to provide
improved infrastructure for business facilities, these
developments need time to show full results.

16
 Global GCC Real Estate Quarterly

UAE Real Estate Sector

4Q Highlights
Latest Development
GCC Real Estate Sector 4Q2009
Abu Dhabi steps in to support troubled
Dubai World
After Dubai Worlds announced in November 25 its
intention to restructure its debt, Abu Dhabi agreed to
provide US$10bn to support the debt restructuring of
Dubai World, including the repayment of Nakheels
US$3.65bn sukuk that were due in December 2009.
Emaar Cancels Merger with Dubai Holding
Units
Emaar's board of directors called off the merger with
Dubai Holding that was announced earlier in June 2009
citing lack of economic feasibility as the main reason
behind the decision.
Burj Khalifa Launched
The beginning of 2010 marked the inauguration the
worlds tallest tower by Emaar properties; Burj Khalifa
(previously named Burj Dubai).
Real Estate Financing
Real estate mortgage loans stood at AED138.3bn in
Sep-2009and grew by 4% in from 2008 year-end level
according to the latest available data by the UAE central
bank, while credit to the construction sector increased by
6% in 2009 from 2008 year-end level to reach
AED126.8bn.
Impact
The stepping up of Abu Dhabi to stand behind its neighbor
Dubai have restored some of the lost confidence after the
announcement of Dubai Worlds debt restructuring.
However, it is still too early before confidence is fully restored
to the market as uncertainties still remain.
We believe this decision to be positive for the shareholders of
Emaar as the planned merger brought concerns over the
dilution to Emaar shareholders, and the feasibility of the
new merged entity.
We do not believe that the opening of the Burj Dubai will
have an immediate effect on the prices and rents in
surrounding areas, however, the launch has restored some of
the lost the hype of Dubai, and enhanced its image as a
business hub.
We expect credit for real estate to remain tight in the short
term, given high interest rates and lower LTVs. However,
our long term outlook is positive as the real estate market
gradually recovers and banks ease their lending constraints.

Performance
Land Transactions in Dubai Dubai Residential Sales Prices
AED/Bn AED/Sqft
30
1900
25
1700

20 1500
1300
15
1100
10 900

5 700
500
0
Q208 Q308 Q408 Q109 Q209 Q309 Q409
Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409
Source: Dubai Land Department,
Source: Colliers International Completed Incomplete

As the market started to show some signs of stabilization in prices in H2 2009, the total value of land
transactions in Dubai improved in 4Q 2009 on a q-o-q basis. During 4Q 2009, popular developments
with proper amenities and infrastructure such as Palm Jumeirah, Dubai Marina, Downtown Burj Dubai,
Springs and Arabian Ranches still fared better than others. The average price for completed properties
increased by 9% in 4Q 2009 on a q-o-q basis, whereas the price of incomplete properties increased by
8% on the back of the increase of selling prices of Jumeirah Village, Victory Heights and Dubai Marina.
In terms of villas and apartments, the average rate for apartments stood at AED1,113 per sqft with a 4%
decline on a q-o-q basis according to colliers price index, whereas villa prices stood at AED919 per sqft
on average showing an increase of 7% on a q-o-q basis.

17
 Global GCC Real Estate Quarterly
Average Apartment Rental Rate in Dubai Average Villa Rental Rate in Dubai
(Dec-2009) (Dec-2009)
AED/pa AED/pa
250,000 450,000
GCC Real Estate Sector 4Q2009
400,000
200,000
350,000
150,000 300,000

100,000 250,000
200,000
50,000
150,000
100,000
Downtown Burj Dubai Marina Greens Palm Jumeirah Jumeirah Lake 50,000
Dubai Towers

2BR 3BR
Jumeirah Islands Meadows Palm Jumeirah Springs
Source: Landmarck Advisory 3BR 4BR
Source: Landmarck Advisory

Leasing rates for apartments witnessed a mixed trend
with rents increasing in popular developments such as
Palm Jumeirah and Downtown Burj Dubai. However,
during 4Q 2009, the rates of declines were lower than
those witnessed in 3Q 2009.
Starting from 3Q 2009, leasing rates for villas in
Dubai started to stabilize. During 4Q 2009, the trend
continued with sales prices for Villas remaining stable
to some extent with increased demand lifting up prices
in certain key areas like Palm Jumeirah and Springs.

Average Apartment Rental Rate in Abu Dhabi Average Villa Rental Rate in Abu Dhabi
(4Q-09) (4Q-09)
AED/pa AED/pa

250,000 400,000
350,000
200,000 300,000
250,000
150,000
200,000

100,000 150,000
100,000
50,000 50,000
-
-
Khalidiya Airport Raha Gardens Khalifa A
Khalidiyah Corniche Passport Road Khalifa Street Airport Road
3 BR 4 BR
Source: Asteco 2 BR 3 BR Source: Asteco

In Abu Dhabi, apartment rents continued to slide
marginally as new supply continues to enter the market,
and people continue to relocate from Abu Dhabi to Dubai
on the back of lower rents. In addition, tenants
negotiating power strengthened resulting in lower rents.
Rents for higher quality apartments fell by 10% on
average while those for lower quality apartments declined
by more than 10%.
During 4Q 2009, leasing rates for villas in Abu
Dhabi witnessed declines in the range of 10% to 20%
with the largest drops witnessed in the higher end
segment of the market. However, rents were more stable
on Abu Dhabis mainland developments such as Al
Raha Gardends.

18
 Global GCC Real Estate Quarterly
Average Office Rents in Dubai (4Q-09) Average Office Rents in Abu Dhabi (4Q-09)
AED/Sqft/pa
AED/Sqft/pa 200
400 180
GCC Real Estate Sector 4Q2009
350 160
300
140
250
120
100
200
80
150
60
100
40
50
20

Source: Asteco Source:Asteco

During 4Q 2009, the office market in Dubai has seen
limited activity and no significant changes in prices and
rents. However, certain areas attracted interest such as
Dubai International Financial Center, and Sheikh
Zayed Road.
As the market still awaits the new supply coming in,
the office market in Abu Dhabi witnessed a limited
activity as companies are adopting the wait and see
approach. Slowing demand has further pushed rents
down.

Market Forecast
Segment Future Trend Rationale
Dubai Residential Downward With new supply of residential units coming on
stream, we do not expect a recovery in 2010.
However, we do not believe that the market will
drop significantly in 2010. Prices are not expected
to bottom out before 2Q 2010.
Dubai Office Space Downward Around 30mn sqft of additional office space is
expected to enter the market by the end of 2011,
which will increase vacancy rates and put further
downward pressure on rentals.
Abu Dhabi Residential Downward Lower rents in Dubai are still attracting residents
in Abu Dhabi, putting downward pressure on
prices and rents. In addition, new deliveries in
2010 from projects such as Marina Square, Sun
&Sky Tower, and Al Bandar will further push
down rents and prices.
Abu Dhabi Office Space Downward As more supply hits the market in 2010,
landlords are forced to offer competitive rates,
pushing prices and rents further down.

19
 Global GCC Real Estate Quarterly

Selected GCC Real Estate Listed Companies

Company Bloomberg Current Mkt Cap Stock Performance (%) P/E P/BV Earnings (in USD mn)
Ticker Price (in US$ mn) 1m 3m 12m (TTM) (TTM) 2009 2008
GCC Real Estate Sector 4Q2009
UAE
ALDAR Properties ALDAR UH 3.8 2,709 (14) (30) 63 9.7 0.6 274 938
ArabtecHolding ARTC UH 2.1 703 (11) (29) 26 3.5 1.0 na 261
Deyaar Development Co. DEYAAR UH 0.5 771 (13) (34) (18) 3.6 0.4 8 179
Emaar Properties EMAAR UH 2.9 4,996 (12) (32) 34 - 0.6 89 45
RAK Properties RAKPROP UH 0.5 283 (4) (26) 20 5.7 0.3 46 103
Sorouh Real Estate Co. SOROUH UH 2.2 1,491 (13) (32) (8) 11.0 0.9 131 506
Union Properties UPP UH 0.5 449 (28) (51) (40) - 0.3 (136) 208

Kuwait
Abyaar Real Estate Development Co. ABYAAR KK 0.06 205 (7) 8 (64) 2.9 0.2 na 21
Al Mazaya Holding Co. MAZAYA KK 0.15 253 (6) 10 (19) - 0.5 na 46
First Dubai Real Estate Development Co. FIRSTDUB KK 0.05 156 (12) 7 (55) 29.4 0.5 na 2
IFA Hotels and Resorts IFAHR KK 0.51 803 (6) 4 10 7.2 2.2 108 131
Injazzat Real Estate Development Co. INJAZZAT KK 0.17 201 (2) 1 (19) 3.7 0.7 na 54
Mabanee Co. MABANEE KK 0.76 1,179 9 10 76 22.9 3.1 na 22
National Real Estate Co. NRE KK 0.22 655 7 (8) 14 9.4 0.7 na 64
Salhia Real Estate Co. SRE KK 0.24 321 9 10 45 - 0.8 na -124
Tamdeen Real Estate Co. TAM KK 0.27 343 (5) (7) 2 - 1.0 na 48
The Commercial Real Estate Co. ALTIJARI KK 0.12 690 - (2) 19 44.3 0.8 na 51
United Real Estate Co. URC KK 0.09 241 4 10 26 128.4 0.5 na 21

Saudi Arabia
Dar Al Arkan Real Estate Development Co ALARKAN AB 14 3,989 (1) (14) (0) 7.8 1.1 564 627
Emaar the EconomicCity EMAAR AB 10 2,278 1 (4) 10 - 1.1 (82) (78)
Jabal Omar Development Co. JOMAR AB 21 3,724 11 10 9 - 2 (6) na
Saudi Real Estate Co. SRECO AB 25 798 1 (9) 26 32.9 1.0 24 31
Taiba Holding Co. TIRECO AB 17 668 2 2 5 35.6 0.9 18 43

Qatar
Barwa Real Estate Co. BRES QD 30 2,150 6 (13) 41 11.3 1.5 na 85
Ezdan Real Estate Co. ERES QD 36 26,096 (8) 10 297 30.1 5.2 na 373
Qatar Real Estate Investment Co. QRES QD 30 727 3 14 84 10.8 1.3 na 86
United Development Co. UDCD QD 31 902 (15) (15) 15 6.4 1.2 139 86

Bahrain
Inovest* INOVEST BI 0.5 139 (9) (4) (25) 12.0 0.6 11 91
Seef Properties SEEF BI 0.1 177 (1) (1) (6) 4.3 0.7 na 42

Oman
Sahara Hospitality Co. SAHS OM 2.4 36 - 24 31 9.0 1.4 4 3
All current prices are in local currency as on December 3rd 2009 unless otherwise mentioned. * Current price in USD
Source: Bloomberg, & Zawya

20
 Global Investment House
Global Tower
Website: www.globalinv.net
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