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Qatar’s Transformation – The Property Perspective

Opportunities. Qatar’s Transformation – The Property Perspective. 2 June 2009. From US Credit Crunch to Global Economic Crisis . IMMEDIATE IMPACT. LONG TERM IMPLICATIONS. Fluctuation in commodity prices Fears of a significant global recession Nationalization of Banks

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Qatar’s Transformation – The Property Perspective

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  1. Opportunities Qatar’s Transformation – The Property Perspective 2 June 2009

  2. From US Credit Crunch to Global Economic Crisis

  3. IMMEDIATE IMPACT LONG TERM IMPLICATIONS • Fluctuation in commodity prices • Fears of a significant global recession • Nationalization of Banks • Consumer confidence affected • Stock markets are taking a plunge • Investor pessimism • Sharp increase in corporate defaults • Weakening of the traditional western corporate leaders • Shift from Mature to Emerging markets • Stronger emerging market giants from the Middle East and BRIC countries • Increasing role for Gulf states on global stage • Opportunity for emerging countries to enter new markets and geographies • Move to polarized global economy Economic Crisis Synopsis

  4. Pre-Crisis Post-Crisis                 Impact of Financial Crisis on Real Estate Markets Robust Demand Rents Rising Increasingly International Market Cheap & Plentiful Debt More Buyers than Sellers Cap Rates Falling Prime = Secondary Traded Volumes High

  5. Middle East Less Impacted Source: IMF, Word Economic Outlook, March 2009

  6. Stages in Market Maturity Transparency Required Returns (Hurdle Rates) Market Volatility Catalyst Time Maturing Growth Core Cairo Muscat Doha Abu Dhabi Dubai Moscow Shanghai London New York Source: Jones Lang LaSalle – World Winning Cities 2008

  7. Highly Transparent Tier 1 Transparent Tier 2 Dubai Bahrain Abu Dhabi Semi-Transparent Tier 3 Saudi Arabia, Morocco, Egypt Oman, Qatar, Kuwait Pakistan, UAE (Other Emirates) Low-Transparent Tier 4 Opaque Sudan, Algeria, Syria Tier 5 MENA Transparency

  8. Investor Sentiment – Global • Middle East still seen as strongest performing market globally (36%) although this has fallen from 56% back in September • Asia Pacific is seen as second strongest - increased from 20% since last survey • Improvement in expected performance in North America from 5% since last survey • Improvement in expected performance in Western Europe from 2% since last survey Source: Jones Lang LaSalle ISS, March 2009

  9. Investor Sentiment - MENA Saudi Arabia offers strong potential – large and rapidly growing market continues to open up and offer new opportunities Qatar expected to offer strong performance building upon its reputation as the next emerging GCC real estate market and its gas wealth Investors still remain bullish towards the UAE, especially Abu Dhabi Source: Jones Lang LaSalle ISS, March 2009

  10. Key Strengths of Qatar Growing population 1 Opportunity for infrastructure led investment 2 Strong government support 3 3 Highest GDP per capita in the world 4 4 Ample off-balance sheet income to support growth 3 5 Gas based economy (less fluctuating prices) 4 6 Regional influence 7 3 4

  11. Qatar – World’s Highest GDP • Domestic and regional infrastructure investment • Securing the future through an active global agenda Source: IMF November 2008

  12. Growth Estimates (2009) Source: Various

  13. Requirements to Recovery Source: Jones Lang LaSalle

  14. Emerging World Winning Cities Moscow Prague Warsaw Budapest Beijing Doha Delhi Mexico City Shanghai Abu Dhabi Mumbai Bangkok Bangalore Kuala Lumpur Sao Paulo Johannesburg Buenos Aires Santiago Source: Jones Lang LaSalle World Winning Cities, 2009

  15. Doha: A Destination in the Making • Performance • Planning • Population • Place Making • Power • People • Purity • Process • Property • Physical Source: Jones Lang LaSalle World Winning Cities, 2009

  16. Thank You Avik RakhitHead of Northern GulfJones Lang LaSalleavik.rakhit@jll.comwww.joneslanglasalle-mena.com

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