Monday 18 June 2007

Can Fujairah copy the model of Dubai?

Reading through a Dow Jones report on the intention of Fujairah (part of the UAE) to allow foreigners to own property on freehold bases by the end of this year. I find it hard to think that just passing a law can trigger a massive buy out and allow for a housing boom just like what happened in Dubai.Dubai was the first Emirate to allow foreigners to buy property in designated areas in the state. The decision taken in 2002 spurred an economic boom and helped Dubai real-estate market to prosper and become one of the biggest market in the Middle East within a few years. Dubai being the model that many have wanted to copy is based on many factors not just a freehold law that allowed for a Dubai property boom. I believe that this model was born at the time a very wise man decided to build a port in the middle on no where (Jebel Ali Port) and the rest followed, if the structure is solid then the build will be strong.What Fujairah needs first is a massive commercial and economical boom to help boosts its chances of creating the real estate booms it hopes for. The model of success in Dubai has been helped by the massive investments in the infrastructures from roads to commercial areas, plus a great airport that allowed for easy access in and out of emirate. Surely the model can be emulated but needs more than just a freehold law.Fujairah should first create an inviting business environment that can attract the right kind of investments and to allow for reinvestment in the existing infrastructure. True that Fujairah is strategically located (outside the Gulf and the narrow Strait of Hormuz) and does have great potentials, that’s not where the argument is but you don’t just build houses and people will come, you create the right conditions and surely people will come to buy and live in those houses.The other model that Fujairah can opt out for is a seaside resort which would serve as an escape place from the city. Fujairah’s largely undeveloped coastline can create this model helped by the new plan to create a new freeway that would cut the journey between Dubai and Fujairah to 45 minutes so that it would attract many people looking for a weekend getaway .

5 comments:

Anonymous said...

This sounds like a pretty solid argument, you know what, you wrote what I thought

Anonymous said...

I might disagree with you as I think that Fujirah can really do well if it takes the first step and attract more people to come and populate the city.

Anonymous said...

I was in Fujairah last week, it is such a beautiful city, I believe so much can be done in this city as long as the petrodollar start pouring in, it can really match the coasts around the world, so why not you big investors start looking for opportunities as soon there will be little and few left.

Anonymous said...

I think Dubai has good policy in real estate, and many countries wants to copy it. I believe that step by step Fujairah can have success looking on Dubai example.

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