Fourteen years from now, in 2030 to be specific, the GCC will have undergone a metamorphic transformation. Bahrain, the Kingdom of Saudi Arabia, and the United Arab Emirates are currently developing and implementing plans to propel the countries and the entire region forward. Vision 2030 is a plan to expand, enhance, and diversify income in the GCC through non-oil industries.
Why Vision 2030
The GCC region has long been known for a profusion of oil, making its countries economically wealthy. However, it has also made the economy reliant on a single source. In 2014, the oil market saw an unexpected plummet that has given many nations a reason to diversify income. From here, Vision 2030 emerges to expand nations’ economy through various industries.
An essential part of these visions is to focus on human wealth, as it is an investment that guarantees high returns for the entire nation. Education and fair opportunities will not only aid the GCC countries but will also give rise to a future generation of ambitious individuals.
Bahrain, KSA, and the UAE have come to realize that tourism has been a massive contributor to the local economy. Future trends suggest that the industry will continue rising in the years to come. Therefore, there is a move towards adding new projects and improving on current ones. A growth in tourism will also release the countries from an oil-dominated economy to a booming and diverse one.
Bahrain’s Vision 2030
Bahrain’s Economic Vision 2030 was launched in 2008 by His Majesty King Hamad bin Isa Al Khalifa. Four years of in-depth discussions led to the creation of a vision that hopes to offer every Bahraini a better, more prosperous life.
In order to pursue and realize sustainability, fairness, and competitiveness, the Kingdom is reshaping its government, society, and the economy. The Vision entails shifting away from an oil-based economy and embracing a globally competitive one that is built by a productive and pioneering private sector.
Saudi Arabia’s Vision 2030
Saudi Arabia is determined to become a global investment powerhouse. It is currently shifting its economic perspective to focus on sources of income other than oil. The Kingdom holds a strategic location between Asia, Europe, and Africa, as well as access to key global waterways. The country is also abundant in natural minerals.
Vision 2030, however, will be relying on its human wealth. The people who will, in due time, deliver the vision’s themes: a vibrant society, a thriving economy, and an ambitious nation. KSA is currently undergoing major changes in government, economy, construction, and education in order to fulfil its vision.
UAE’s Vision 2021
Though the UAE’s vision will be fulfilled before Bahrain and KSA, it will also play a role in reshaping the region by 2030. Vision 2021 was launched by H.H. Sheikh Mohammed bin Rashed Al Maktoum in 2010. The vision aims to make the UAE one of the best countries in the world by the Golden Jubilee of the Union.
The government will be focusing on education, healthcare, economy, police and security, housing, and infrastructure and government services. These will become the country’s priority and the largest contributors towards creating a unified, prosperous, and thriving nation.
Real estate in the heart of GCC vision
Most GCC governments regard real estate sector as the cornerstone of the economic development to take place in their countries. Therefore, a number of steps have been taken to work on bolstering this sector and increasing its profitability in order to attract foreign and regional investors.
To lay down a strong basis for spurring real estate growth, GCC governments passed a set of laws and regulations to act as an organizing framework for property market and make foreign investments in real estate way easier. Many GCC countries like UAE and Bahrain enabled freehold ownership in more than one location.
Moreover, governmental expenditure on developing infrastructure increased over the years for sake of improving real estate status. Total GCC governments’ expenditure on new infrastructure projects is predicted to hit 300 billion dollars in the coming 5 years.
Many major infrastructure projects have been unravelled in the latter period such as Qatar Rail which will link most Qatari cities, the causeway linking between Bahrain and Qatar, Haramain Rail project connecting Makkah, Medina, and Jeddah, not to mention the new roads network being stretched all over GCC, power stations, water stations, etc.
Developing infrastructure will facilitate the creation of new residential and industrial communities and will boost investors’ confidence in regional real estate market, hence, it’s substantial for achieving the future economic development programs in each country.
GCC after 2030
Upon achieving all these set goals, plans, and programs, the whole economic landscape of GCC states will be totally transformed to the better, including of course real estate sector.
Ordinary citizens of GCC states are expected to witness a quite improvement in tourism field, more hotels are resorts up and running targeting foreign and local visitors.
Property prices are poised to get stable and be more affordable for nationals, especially in the major cities. Also, a wider variety of properties will be accessible in all areas since construction will be smarter and at a faster pace.
Unemployment rates will drop significantly thanks to the recently launched industrial and infrastructure projects.
Rental average price will drop as well, despite the high demand, due to the growth of supply and the increase in properties stock.
New integrated urban communities of all scales will be built in many areas around GCC, moreover, the supply of mid-market properties will enlarge to meet the rising demands from nationals.
Reader could feel that all these points are way too far from reality, well actually, they aren’t that far to be achieved.
Many GCC states are trekking on the right path towards improving the properties sector. This can be clearly realized from the new set of laws being lately passed like for example the 100% foreigners’ ownership law passed in Bahrain, and many other.
Various projects are being launched every day. Major companies started diverting their interest towards mid-market real estate projects to meet middle-income nationals’ rising need of suitable housing.
On top of all that, GCC real estate markets are witnessing a wide-scale price correction movement. Properties rental and sales prices average are declining at a slow pace opening the path for more investors to take advantage and enter the market.